Zimbabwe’s value-added exports surge

STAFF WRITER

Zimbabwe is steadily transforming its export profile, shifting away from raw commodity shipments towards higher-value manufactured products, with the latest trade statistics showing strong growth in export earnings and a significant narrowing of the trade deficit.

According to the Zimbabwe National Statistics Agency (ZimStat), cumulative export earnings for the period January to April 2026 surged by 48% to US$3.57bn, compared to US$2.41bn recorded during the corresponding period in 2025.

The improved export performance helped reduce the country’s trade deficit to US$295m from US$582m recorded in the same period last year.

At the centre of this growth is the rising contribution of value-added exports, which increased by 34.4% to more than US$200m from US$149m in 2025, underscoring Zimbabwe’s gradual transition from exporting raw materials to processed and manufactured goods.

The shift is expected to deliver greater economic benefits, as value-added products generate substantially higher returns than unprocessed commodities, boosting national income and strengthening local industries.

Engineering steel products emerged as one of the strongest performers, recording a remarkable 165.6% increase to US$77.9m from US$29m in 2025.

The growth was largely driven by exports of iron and steel bars, rods and coils, supported by expanding domestic production capacity following major investments such as the Dinson Iron and Steel project.

Manufactured tobacco exports also rose by 33.5% to US$45.9m, reflecting continued investment in value chain development aimed at maximising returns from Zimbabwe’s tobacco sector.

Exports of building and construction materials increased by 4% to US$9.5m from US$9.1m during the same period last year. Products in this category included unglazed ceramic flags, paving materials, hearth and wall tiles, as well as mosaic cubes.

The positive performance supports the objectives of the National Development Strategy 2 (NDS2), which seeks to raise the ratio of value-added exports to total exports from a 2025 baseline of 5.5% to 18.4% by 2030.

To support this target, government has continued implementing measures aimed at improving the ease of doing business and promoting local beneficiation.

Through the 2026 National Budget and accompanying fiscal reforms, authorities introduced targeted incentives and structural tax adjustments designed to encourage domestic processing and industrialisation.

One notable example has been the sharp rise in exports of sulphates, including alums and peroxosulphates (persulphates), which reached US$12.6m in April 2026, compared to just US$357,000 during the same period in 2025.

Industry players attribute the increase largely to processed lithium exports, with the first shipment from Fito recorded in April 2026 following government’s ban on the export of lithium concentrates earlier this year.

Value chain optimisation programmes implemented by organisations such as ZimTrade are also helping small and medium enterprises and smallholder farmers upgrade their products to meet international standards.

These initiatives include international expert interventions, women- and youth-focused programmes, and cluster development projects aimed at enhancing competitiveness.

In terms of export destinations, the United Arab Emirates (UAE), South Africa and China collectively accounted for 89% of Zimbabwe’s total exports during the period under review.

The UAE remained Zimbabwe’s largest export market, accounting for 50.4% of total exports valued at US$1.79bn, largely driven by mineral products.

South Africa ranked second after exports to the neighbouring country increased by 47% to US$830 million, overtaking China, where exports rose by 35% to US$563m from US$419m in 2025.

Beyond the top three markets, Zimbabwe’s export base is gradually diversifying, with increased trade recorded with Zambia, Botswana, Indonesia, Russia and the United States.

The country’s recent nomination to the United Nations Security Council for the 2027-2028 term is also expected to strengthen efforts to diversify export markets under Zimbabwe’s engagement and re-engagement agenda.

Commenting on the development, ZimTrade chief executive officer Allan Majuru said the nomination could enhance Zimbabwe’s global profile and support ongoing efforts to expand exports.

“The UN Security Council nomination accelerates current trade initiatives aimed at growing exports by elevating Zimbabwe’s profile on the world stage, where commercial negotiations often follow global credibility,” Majuru said.

He said the enhanced international standing would complement ZimTrade’s efforts to unlock new markets for local companies.

To support exporters, ZimTrade, working with the Ministry of Foreign Affairs and International Trade, continues to facilitate bilateral trade seminars, trade missions and strategic market scans.

Current initiatives include the Zambia Services in Building and Construction mission underway in Lusaka, while recent market scans conducted in Vietnam and Thailand have identified additional opportunities for Zimbabwean exporters.