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Oliver Kazunga, Senior Business Reporter
THE national trade, development and promotion agency, ZimTrade, has urged local exporters to refocus their priorities in light of the global pandemic of Covid-19.

Confronted with the economic challenges posed by the global pandemic, ZimTrade says actions taken by local exporters during this period will determine their relevance on the world market after the Covid-19 era.

“The coronavirus-induced global lockdown negatively affects Zimbabwe’s exporters in the short-to-medium-term period as it is beginning to take a toll on business.

“What is needed is to refocus priorities and concentrate on areas that will make it easy to meet demand, which is projected to grow once borders begin to reopen,” it said in a statement.

ZimTrade noted that some manufacturing companies have reduced output due to downtime, while others are facing disruption in sourcing raw materials, especially those imported.

Regarding exporters, it said some local businesses were no longer able to transport their products as was the case a few months ago because travel and other border restrictions are negatively affecting trade.

“Currently, some buyers who had placed orders, especially for horticultural produce, are being forced to cancel transactions because demand has dropped significantly in their respective markets.

“The players in floriculture indicated that the peak period of flowers exports is from February to May hence they were now at the peak period and this has been a huge loss to the farmers,” said ZimTrade.

Demand for non-essential products such as flowers in Europe, which is the largest importer of Zimbabwean flowers, has been reduced.

The national trade development and promotion agency noted that Covid-19 has destabilised markets, which are increasingly becoming inconsistent with regards to requirements and needs.

It said there was high potential that some markets will emerge bruised and battered after the global pandemic and thus it is crucial for local exporters to closely monitor trends on the global export market.

At present, ZimTrade is monitoring global markets, engaging other trade promotion organisation and liaising with buyers. The market intelligence generated from these engagements is expected to assist local companies in coming up with post Covid-19 export strategies.

“For example, there are some products whose price has gone very high because they are in demand and a few manufacturers are supplying.

“These include medical supplies and some foods that are considered superfoods because they contain high nutrients and are low in calories,” said ZimTrade.

It said low demand of some products and services has had to force prices for some products to fall drastically, especially those that were not a basic need during the global shutdown.

“Arguably, products such as flowers have been affected in most countries. However, after borders re-open, it is likely that the current state of markets will start to change, with some product prices going up while others falling,” it said.

In some markets, consumers seem to be going for products with long-shelf life, including fruits and vegetables.

“Projections are that social distance will likely change perceptions on some products and services, which will affect supply and demand.

“Packaging will also need to be adapted to make sure that people feel safe when they purchase produce,” said ZimTrade. — @okazunga