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Business Reporter

ZIMBABWE’S trade promotion and development agency, ZimTrade, yesterday signed a memorandum of understanding with the Japan External Trade Organisation (JETRO) aimed at strengthening co-operation and collaboration between the two parties.

President Mnangagwa, who is in Yokohama, Japan, for the 7th Tokyo International Conference on International Development (TICAD), witnessed the signing ceremony, which should pave way for expansion of trade and investment between Zimbabwe and Japan. 

JETRO is a Japanese government-related organisation, established in 1958, to promote mutual trade and investment between Japan and the rest of the world.

Speaking after the signing of the MoU with JETRO president, Mr Yasushi Akahoshi, ZimTrade chief executive officer, Mr Allan Majuru, said Japan was strategic to Zimbabwe’s development and trade and that the MoU will strengthen ongoing activities that are targeted at increasing Zimbabwe’s exports. 

“We have good relations with Japan and the signing of this MoU will go a long way to ensure Zimbabwe and Japan realise more benefits from the development and trade co-operation,” he said. 

Through the MoU, ZimTrade and JETRO have agreed to collaborate with each other to promote and strengthen trade relations between public and private sector institutions and operators, in sectors to be mutually agreed. This is expected to culminate in increased and improved trade and investment between Zimbabwe and Japan.

The two organisations have also agreed to promote, through their joint collaborations and within their respective mandates, the internationalisation efforts of their stakeholders, members and clients to expand their business, in a cost effective and efficient manner.

Other areas of possible co-operation between the two parties include information sharing, exchange visits, capacity building and export development and promotional activities. The MoU will provide further opportunities for ZimTrade and JETRO to share notes on best options to develop and capacitate Zimbabwe’s exporters so that they value-add their products. 

This will cover the gap and address challenges affecting Zimbabwe’s trade where more products are exported with minimal or no value addition. For example, Zimbabwe’s major exports to Japan in 2018 were ferro-alloys, vermiculite, unmanufactured tobacco, cotton, waste and scrap of precious metals. Other major exports to Japan were cut flowers and flower buds, raw and tanned or crust hides and skins. 

At the same time, Zimbabwe’s major imports from Japan have been primarily finished products such as motor vehicles, pharmaceutical products, machinery and machinery appliance, electrical machinery and equipment and iron and steel.