Zimpapers Logo

Oliver Kazunga, Senior Business Reporter
ZIMBABWE’S month-on-month exports increased by 24 percent to $2,4 billion between February and August this year compared to $1,9 billion recorded in the comparative period in 2017, official trade figures show.

According to data from the Zimbabwe National Statistics Agency (Zimstat), the country’s trade deficit slid by 44 percent to $127 million in August from $229 million in February.

The volume of exports in August increased by 32 percent to $449,3 million compared to $340,3 million recorded the previous month. Zimstat also indicated that the country’s total trade between February and August improved by 25 percent to $6,4 billion compared to $5,1 billion posted in the same period last year.

The country’s exports during the period under review largely comprised primary commodities like semi-refined nickel mattes (14 percent), jewellery (2 percent), diamonds (2 percent) and platinum (1 percent), gold (34 percent), and flue-cured tobacco (12 percent).

Zimbabwe’s imports were largely made up of wheat (1 percent), motor vehicles (1 percent), ammonium nitrate (1 percent), diesel (15 percent), unleaded petrol (8 percent), and electrical energy (3 percent). Between February and August, Zimstat indicated that South Africa remained Zimbabwe’s largest trading partner taking 46 percent of the total exports while the United Arab Emirates was on second spot at 22 percent.

In the past, the country’s enhanced export performance has been attributed to a raft of measures put in place by the Government and the Reserve Bank of Zimbabwe to boost domestic output and tame the trade imbalance.

Zimbabwe exports to different countries across the globe and also due to depressed productivity in the local manufacturing sector, the country also relies on importing key raw materials for its industry using the scarce foreign exchange in the economy. In 2016, RBZ introduced a five percent export incentive bonus scheme with a view to encouraging companies to export.

The facility, which is being disbursed through Agribank and Homelink, attracts interest rates of around 7,5 percent per annum. Government has noted exports as a major source of liquidity for overall economic activity. — @okazunga