Zimpapers Logo

Prosper Ndlovu, Business Editor

ZIMBABWE has registered remarkable growth in exports to Dubai, a key province in the United Arab Emirates (UAE), to clock US$1.4 billion in 2020 earnings from just above US$200 million in 2015 to become one of the top trading partners to the emerging western Asian economy.

Dubai is now Zimbabwe’s second largest trading partner after South Africa.

Although trade gains are in favour of Zimbabwe, with Dubai managing only US$100 million export value by 2020, the two countries are keen on fostering strategic synergies aimed at scaling up production in key sectors, and exporting these to the Gulf and European regions, for instance, where demand for such products is high. 

The scope for taping into these trade and investment opportunities is at the heart of this week’s Zimbabwe-Dubai Business Forum whose climax was yesterday’s high-level trade and investment conference that was facilitated by ZimTrade. 

The conference was being hosted on the sidelines of the on-going Expo-2020 Dubai where Zimbabwe has been fully participating since its commencement last October. 

In his presentation yesterday Dubai International Chamber’s director of international offices, Mr Omar Khan, said the potential for synergies were high between the two countries and that these could bolster trade and investment opportunities.

“Zimbabwe is Dubai’s 16th largest partner in Africa out of 57 other African countries. In 2020, Dubai-Zimbabwe bilateral trade reached the highest value over the last decade with US$1.5 billion,” he said. 

“Dubai imports from Zimbabwe reached US$1.4 billion in 2020 while the value of Dubai Exports to Zimbabwe is around US$100 million in 2020.”

According to Mr Khan, Zimbabwe’s main exports to Dubai are pearls and precious stones, which account for 95 percent with tobacco, edible fruits and nuts also being part of the basket.

Zimbabwe largely imports value added products from Dubai such as mineral fuels, essential oils and cosmetics, electronics and value-added precious stones.

Mr Khan said Dubai exporters have a huge opportunity to grow their share of exports to Zimbabwe on products ranging from industrial machinery, vehicles and parts, chemicals, paper and plastic products among others.

In particular, he said more opportunity abounds in the agri-business value chain from diverse input supply needs to production and distribution.

Given that UAE is a net importer of food products, which represent about 7.8 percent of its total imports, Mr Khan said this creates a window for more lucrative synergies between Zimbabwe and UAE.

“This offers a lucrative opportunity for Zimbabwean exporters to penetrate more the UAE and Dubai markets,” he said.

“As part of the UAE food security, the UAE has an open trade and investment policies to support food production and trade.

UAE total imports of F&B (food and beverages) products reached US$5.1 billion in 2019 from US$0.8 billion in 2000.”

Mr Khan noted the expanding manufacturing and food processing capacity in Zimbabwe, which has seen industry capacity utilisation clocking 60 percent in 2021 from 47 percent in 2020, according to the Zimbabwe Confederation of Zimbabwe Industries’ estimates.

He said this development has increased demand for machinery and related equipment, which can be sourced from Dubai.

Mr Khan indicated desire by UAE to invest directly to Zimbabwe’s agro-processing sector to bolster output in view of the increased demand for processed foods and beverages in the European Union zone, which has higher appetite for locally produced fruit and vegetable products.

“This offers lucrative trade and investment opportunities for UAE investors and traders along the different stages of the Zimbabwean fruit and vegetable supply chain,” he said.

“This includes investment in logistics, transpiration, cool storage, manufacturing, retail and supermarkets and packaging materials.”

Industry and Commerce Minister Dr Sekai Nzenza, who is leading the Zimbabwean delegation to the conference and is accompanied by counterparts; Dr Anxious Masuka (agriculture), Dr Sithembiso Nyoni (women and SMEs) and Deputy Minister Mike Madiro (transport and infrastructure), among senior Government officials, said UAE was an important cooperating partner for Zimbabwe given the huge mutually beneficial opportunities. 

“Zimbabwe and the UAE continues to grow in favour of Zimbabwe, and the UAE remains the second largest trading partner of Zimbabwe after South Africa accounting for at least 25 percent of Zimbabwe’s total exports of goods valued at US$1.4 billion in 2020,” she said.

“Mineral commodities and notably gold and diamonds, and tobacco account for over 85 percent of exports to the UAE.

The only challenge we have is that our exports are only concentrated on a very few commodities, with limited diversification.” 

Minister Nzenza said Zimbabwe can do much better to exceed to current trade levels through tapping into available export potential in the UAE and the broader Gulf region. 

This could be achieved through diversifying exports of agricultural produce, particularly foods and beverages, she stated.

In this regard, there is a need for Zimbabwe to be specific in terms of investment projects available and the Zimbabwe Investment and Development Agency (ZIDA) has an important role to play to facilitate potential investors, said Dr Nzenza.

ZimTrade chief executive officer, Mr Allan Majuru’s presentation delved onto more trade opportunities for local businesses in the UAE.

For instance, he stated that the country has higher comparative advantage in food production and exports given its niche climate endowments, non-GMO policy, sound infrastructure and skilled human capital base. 

The country has special competencies in a range of horticulture products, processed foods, herbs and prebiotics as well as in leather production, art and craft.

“The Government of Zimbabwe is committed to continue working on reforms aimed at enhancing the country’s ease of doing business environment and to support private sector-led economic growth,” said Mr Majuru.

We invite you all to take advantage of the trade and investment opportunities in Zimbabwe.”

Zimbabwe is participating at the on-going Expo 2020 Dubai, which is being held in the UAE under the theme ‘Connecting minds, creating the future. 

The theme is meant to highlight milestones that can be achieved when meaningful collaborations and partnerships are forged. 

The expo theme is supported by three subthemes, which are considered to be the timeless drivers of progress that continue to inspire people, organizations, and nations in their endeavours to create a better future.

The sub-themes are Opportunity, Mobility and Sustainability.

The country is participating in the Opportunities cluster under the theme: ‘Zimbabwe, a land of great opportunities’. 

Several events have been lined up to support Zimbabwe’s participation at the six-month Expo, which began in October last year and ends next month

These include participation at the recently concluded Global Business Forum for Africa, the Smart Cities Conference, Mines and Minerals Conference, Zimbabwe Tourism Conference, The Agriculture Conference and Zimbabwe National Day, among other small events, which will be done in the pavilion.