shloboe boe
Sikhulekelani Moyo, mskulekelani16@gmail.com
ZIMBABWE is focused on growing its exports to reverse trade deficit, which widened to US$196,9 million in December 2024 from US$47,1 million last November representing a 318 percent increase as exports eased by 23,5 percent to US$692,4 million from US$905,2 million, official figures show.
Trade deficit occurs when a country’s value of imports is greater than that of exports in a given period.
When the value of exports exceeds the value of imports, it implies a trade surplus.
According to latest data from the Zimbabwe National Statistics Agency (ZimStat), the country’s imports decreased by 6,6 percent from US$952,3 million in November 2024 to US$889,3 million in December.
“The December 2024 trade deficit for goods was US$196,9 million, translating to a 318,2 percent increase from a deficit of US$47,1 million recorded in November 2024,” said Zimstats.
“Among the top 10 products exported in December 2024 were semi-manufactured gold constituting 42,2 percent, tobacco (22,7 percent) and nickel mattes (8,8 percent).
“Mineral fuels (20,8 percent), cereals (12,4 percent), machinery and mechanical appliances (9,9 percent) and vehicles (8,1 percent) were among the top 10 products imported in the same month.”
The agency said 33,1 percent of the goods imported in December 2024, comprised industrial supplies, followed by the fuels and lubricants category, which accounted for 19,8 percent.
Among the country’s major export destinations in December 2024 were the United Arab Emirates constituting 41,9 percent, South Africa 25,9 percent and China at 19,6 percent.
The three countries accounted for around 87 percent of the total export value of US$692,4 million as industrial supplies comprised 94,6 percent of the goods exported in December 2024. “Among the major source countries for imports in December 2024 were South Africa (39,3 percent), China (10,4 percent), Bahamas (8,6 percent) and United Arab Emirates (4,6 percent),” said Zimstat.
“The four countries accounted for around 70 percent of the total import value of US$889,3 million,” said the agency.
Zimbabwe remains focused on growing its exports base to reverse reliance on imports, with ZimTrade carrying the mandate to lead the export drive as the country becomes more integrated into global supply routes, with new markets presenting export opportunities for local products and services.
According to ZimTrade, buyers across the world are now looking at Zimbabwe as a source market, with Zimbabwean products gaining mileage due to their high quality.
The growing appetite for Zimbabwean goods follows a robust campaign by President Mnangagwa to increase the visibility of local products in regional and international markets.
As part of programmes to energise exports, ZimTrade, recently facilitated the participation of 18 women-led enterprises that are into essential oil production at the Market Access Information, Peer to Peer Learning Programme, to equip them with key technical skills for their businesses.
The event, held in Cape Town, South Africa, was organised in partnership with the “She Trades Initiative” of the International Trade Centre, the Small Enterprises Development Agency of South Africa and the United Kingdom International Development.
The programme focused on 18 women-led SMEs from Zimbabwe and 20 from South Africa to exchange ideas and explore opportunities to boost the sector’s performance in Southern Africa.
Commenting on the programme, ZimTrade client advisor Ms Tatenda Machirori, said training on standards and regulations governing commercial activities around essential oils and technical interventions on branding and labelling were critical.
“Peer-to-peer review sessions were also part of the programme, allowing women-led enterprises to learn from each other, and establish sustainable business relationships with like-minded businesses in South Africa,” she said.
“The programme equipped the women-led businesses with requisite technical skills for the production, packaging and marketing of essential oils.”
The past few years have seen an increase in global demand for essential oils, which are compounds extracted from plant sources such as flowers and fruits, herbs, resins, wood oils, which capture the plant’s scent and/or flavour, or “essence”.
The global market for essential oils, is estimated to have been at US$18,6 billion in 2020, with a Compounded Annual Growth Rate (CAGR) estimated at 7,4 percent between 2020 and 2028.
The major producers of essential oils across the world are China and India with major essential oil-producing countries in Africa including Morocco, Tunisia, Egypt and Algeria.
The global demand for natural products has created a thriving market for essential oils, presenting Zimbabwe with an opportunity to harness its abundant biodiversity and untapped resources.
Ms Machirori said in Zimbabwe, production of essential oils has grown significantly in the past few years, with most of the production focusing on indigenous products such as mangongo, marula, baobab and ximenia oils.
