Siphakeme .Mnindwa
Judith Phiri, Business Reporter
THE country’s trade development and promotion agency, ZimTrade has urged local companies to take advantage of the prioritisation of agriculture by the Second Republic to explore the burgeoning agrochemical export market across Africa that presents significant opportunities for growth and development.
According to Trade Map 2024, global imports of agrochemicals reached an impressive US$144,3 billion in 2023, indicating a robust upward trajectory.
Within this context, the Southern African Development Community (SADC) markets alone imported US$4,4 billion worth of agrochemicals in the same year, a substantial increase from US$2,7 billion in 2019. Similarly, the Common Market for Eastern and Southern Africa (COMESA) experienced growth, with imports rising from US$3,1 billion in 2019 to US$4,9 billion in 2023.
In its recent newsletter, ZimTrade emphasised the potential of agrochemical exports to contribute positively to Zimbabwe’s agricultural sector.
“The prioritisation of agriculture by President Mnangagwa’s Second Republic is positioning Zimbabwe as a key player in Africa’s agrochemical landscape. The growth of the agricultural sector aligns with the Government’s focus on agricultural modernisation and industrialisation, creating opportunities for local companies to penetrate new markets with diverse agrochemical products and services.”
ZimTrade pointed out that this development places Zimbabwe in a competitive position within Africa’s expanding agricultural sector, particularly in regional markets like Mozambique, Zambia, Botswana and Tanzania.
The agrochemical sector includes a wide range of products such as fertilisers, pesticides and other essential agricultural inputs.
Highlighting the ongoing transformation within Zimbabwe’s agrochemical industry, ZimTrade noted that local manufacturers are increasing production to meet continental and global demands.
“The local processing of key raw materials used in agrochemical production is reducing our reliance on imports and providing cost-effective solutions tailored to the continent’s farming systems,” ZimTrade stated.
This shift is enhancing the competitiveness of Zimbabwean products across all Southern African markets. However, ZimTrade also acknowledged the competitive nature of Africa’s agrochemical market, where imports are predominantly accounted for by countries such as China, Morocco and Russia.
In 2023, China exported US$2,2 billion in agrochemicals to African nations, followed by Morocco with US$1,1 billion and Russia with US$816 million. Regional heavyweights like South Africa and Egypt also contributed significantly, exporting US$685 million and US$563 million respectively.
ZimTrade noted that recent developments in the agrochemical sector are embracing sustainability and innovation.
“Local manufacturers are increasingly adopting environmentally friendly agrochemical solutions, positioning Zimbabwe as a responsible participant in regional value chains.”
With these developments, Zimbabwe is well-positioned to achieve sustained export growth in agrochemicals, especially within SADC and across Africa. The competitive landscape underscores the necessity for Zimbabwean companies to carve out a niche, potentially by focusing on innovative, eco-friendly products or leveraging proximity to regional markets to minimise logistical costs.
Analysing bilateral trade data, ZimTrade identified specific product categories with significant export potential. For instance, mineral or chemical fertilisers containing nitrogen, phosphorus and potassium (NPK) accounted for substantial regional demand, with imports across African markets reaching US$1,4 billion in 2022.
Additionally, essential products such as insecticides, herbicides and fungicides saw imports totalling US$296 million in 2023.
ZimTrade encourages Zimbabwean companies to invest in research and development for precision agrochemical solutions that meet these needs, enabling them to establish a foothold in this growing market.
Furthermore, the expansion of agro-industrial parks across Africa represents an essential opportunity for Zimbabwe’s agrochemical sector.
“These parks, supported by Government incentives and international funding focus on increasing local production of agricultural inputs including agrochemicals. Zimbabwean companies that establish a presence in these parks or partner with local businesses will likely benefit from reduced costs and enhanced access to regional markets,” ZimTrade said.
To strengthen their foothold in regional markets, Zimbabwe’s agrochemical producers are encouraged to leverage existing bilateral and multilateral trade agreements including the African Continental Free Trade Area (AfCFTA), SADC and Comesa agreements.
These agreements lower tariffs and streamline cross-border trade, enabling Zimbabwean agrochemicals to be competitively priced in neighbouring countries such as Zambia, Botswana, Namibia and Mozambique.
