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Oliver Kazunga, Senior Business Reporter
ZIMBABWE’S trade deficit for the month of October narrowed to $151 million on the back of exports that rose by 27 percent to $318 million, data from the Zimbabwe National Statistics Agency (Zimstat) show.

The agency also indicated that during the period under review imports grew six percent to $470 million.

Although capacity utilisation in the manufacturing sector was yet to reach competitive levels, Zimstat indicated that the country was presently exporting mainly minerals, scrap metal, tobacco and beef, among other agricultural products.

According to the Confederation of Zimbabwe Industries (CZI), capacity utilisation in the manufacturing sector has this year improved by 13,1 percent to 47,4 percent.

CZI has largely attributed the improved capacity utilisation level to Government protectionist interventions such as Statutory Instrument 64 of 2016, which removed several goods from the Open General Import Licence.

In October, the country raised $144 million from tobacco exports compared to the $54 million recorded in September.

About $76 million worth of gold exports was recorded during the period under review while $28 million was earned from nickel ore exports.

In the first 10 months of the year, the country’s import bill was $4,2 billion while exports amounted to $2,2 billion.

Zimbabwe was importing products such as maize, chemicals, fertilisers, vehicles, and sugar related confectionery.

The goods were being imported from countries such as South Africa, Singapore, Brazil, Zambia, Japan, China and the United Kingdom.

In its manufacturing sector survey report released last month, CZI implored the Government to continue offering incentives that promote the growth and development of the export sector.

It said companies highlighted that the Government should continue offering incentives that include subsidies, raw material import restriction or reduction, tax reduction and rebates.

In the report, CZI  said efforts to improve ease off doing business should be stepped up, Government must also improve on policy consistence, market research and support exhibitions.

“The reasons for not exporting are high cost of exporting, low capacity for exporting, cumbersome export procedures, and capital constraints, among others,” CZI said in the report.

The Reserve Bank of Zimbabwe (RBZ) has introduced bond notes as part of efforts to incentivise the export sector through a five percent export incentive.