The Sunday News
Roberta Katunga Senior Business Reporter
THE 56th edition of the Zimbabwe International Trade Fair is expected to create more opportunities for local companies to export to Zambia in a bid to close the trade imbalance that exists between the two countries. According to the latest export and import figures from ZimStat, Zimbabwean exports to Zambia in the first quarter (January to March) were valued at $25 million while imports for the same period were valued at $44 million creating an imbalance of $19 million.
Zambia is Zimbabwe’s second largest trading partner in sub-Saharan Africa after South Africa.
Zambia exports maize, electricity and fertiliser to Zimbabwe while Zimbabwe exports fertiliser, coal, packaging materials, tobacco, fish, wood, furniture and tea among other products.
Zimbabwe National Chamber of Commerce president Mr Hlanganiso Matangaidze said to address the trade imbalance, Zimbabwe needed to deal with issues on the cost of doing business as well as create export competitiveness.
“There are a number of measures that Government is putting in place to address the cost of doing business in the country and these should help us become more competitive and address the trade imbalance.
The relationship we have with Zambia is a very important one and we must also appreciate that Zambia provides us with an opportunity of increasing economic space,” said Mr Matangaidze.
Zambia and Zimbabwe share long-standing historical ties, having been part of the pre-independence Federation of Rhodesia and Nyasaland when Zimbabwe was known as Southern Rhodesia, Zambia as Northern Rhodesia and Malawi as Nyasaland.
“Literally the boundary that exists between these two countries is a colonial boundary otherwise we are one,” Mr Matangaidze said.
Zambian President Edgar Lungu is set to officially open this year’s edition of the ZITF that will run from Tuesday to Saturday under the theme “Stimulating Trade: Seizing Opportunities to Accelerate Growth”.
President Lungu joins the list of Zambian Presidents who have been guests of honour at previous editions including President Rupiah Banda in 2009 and President Michael Sata in 2012.
The two countries have undertaken a number of economic and political partnerships.
In 2012, the two countries took an important step to sign a memorandum of understanding on co-operation to jointly construct a 1 650 megawatt hydro-power station at Batoka Gorge that was estimated to cost over $4 billion.
“Such infrastructural projects are the enablers of real and sustainable economic development. As a matter of fact, this project is as important to our two countries as it is to the whole SADC region which, as you know is experiencing a critical power deficit,” said the then Zambian head President Sata.
In 2013 the two countries co-hosted the 20th session of the United Nations World Tourism Organisation summit after winning the bid to play host to one of tourism’s biggest events.
As a follow-up to the success of the UNWTO, the two countries went on to sign the Univisa facility, the first in SADC where visitors to any of the countries will only need one visa which will allow them to cross into the other.
Still on tourism, Zimbabwe and Zambia share one of the world’s seven wonders, the Victoria Falls. Tourists travel to Victoria Falls and Livingstone to view the falls.
In 2013, Zimbabwe struck a deal with Zambia to import 150 000 tonnes of maize following poor yields in the previous farming season.
Zambia has always been the first country to offer Zimbabwe grain when there is a poor harvest in the country.
Association of Businesses in Zimbabwe president Mr Lucky Mlilo said Zambia had proven to be a good trading partner for Zimbabwe and urged local companies to take advantage of fairs such as the Zambia International Trade Fair to participate and market their businesses as a way of increasing export opportunities.
A number of Zimbabwean firms each year take part at the Zambia International Trade Fair.
“There are a number of companies that deal with Zambia and they have enjoyed good working relations. Zambia is registering significant growth in terms of development and it is up to us to take advantage of that window of opportunity and diversify our businesses,” Mr Mlilo said.
Some of the companies include coal companies which export the mineral to Zambia for use mainly in copper mines.
