Zimpapers Logo

Sikhulekelani Moyo, [email protected]

THE Buy Zimbabwe Campaign (BZC) has commended the decrease in trade deficit between January and February 2024 saying the trend was a positive indicator for the economy. 

According to the Zimbabwe National Statistics Agency (ZimStat), trade deficit dropped 44 percent, narrowing from US$147 million recorded in January to US$81,4 million recorded in February 2024.

In February, Zimbabwe exported goods worth US$644 million and imported goods worth US$725,4 million while in January exports were US$539,9 million compared  to imports valued at US$686,9 million.

Commenting on these statistics BZC chairman, Mr Munyaradzi Hwengwere, said the narrowing trade deficit was commendable.

“The beauty about what you see within the import, export trade data is that for the last two months and for the better part of the past year actually, we are still in the negative but the trend is going down,” he said.

“What we need to do is to have a better understanding of whether this is systematic or is it seasonal. What are the fundamentals that are driving it?

“Otherwise, the general direction is good because in Zimbabwe, our aim should be to get into trade surplus where our exports are higher than our imports,” said Mr Hwengwere.

This could be achieved through developing strong import substitution strategies so as to reduce dependency on imports, he added. 

Zimbabwe should come up with intentional programmes where people prefer locally produced goods and where companies in Zimbabwe look to substitute items that can be made locally and import those necessary, said Mr Hwengwere.

“For us to get to 2030 as espoused by President Emmerson Mnangagwa it is critical to increase the national wealth that is resident in Zimbabwe,” he said.

“Whenever you see trade deficit you must understand that you are taking from your pocket, from your country and giving it to another country but as a general direction I think it is good and that’s what the ministry and the Government have been espousing and have chosen that it is possible to do so. Let us remember this as an economic struggle.”

Zimbabwe has operated in a negative trade balance for the past four years with cumulative deficit from 2020 to 2023 at US$6,8 billion as the gap between imports and exports generally increased. —@SikhulekelaniM1