The Sunday News
Ngonidzashe Chiutsi Business Correspondent
ZIMBABWE’s trade deficit within the Common Market for Eastern and Southern Africa (Comesa) region has continued to increase and stood at about $500 million in 2012 down from zero in 2010, an official has said.
Speaking in Bulawayo last week during a ZimTrade awareness seminar, Comesa senior trade officer Mr Tasara Muzorori said Zimbabwe was running a huge trade deficit within the Comesa trading bloc.
“There is a negative trade balance between Zimbabwe and members within the Comesa region and it’s not a healthy situation. We are importing more than we are exporting especially after 2008,” said Mr Muzorori.
The official said in 2012 Zimbabwe imported more than $600 million worth of goods while it exported just over $100 million worth of goods among members in the bloc.
Mr Muzorori said the last time Zimbabwe performed well in the Comesa was in 2007 when the country exported goods worth more than $300 million before a tumble.
He added that Zimbabwe’s top import from the Comesa in 2012 was maize.
“The top exports to the Comesa region are coke and semi-coke, followed by cigarettes and others. The top exports destinations in the trading bloc are just three countries Zambia, Malawi and DRC. The country is mainly exporting coke or semi coke of coal, lignite or peat and tobacco,” said Mr Muzorori.
Speaking at the same seminar ZimTrade Bulawayo regional manager Mr Similo Nkala urged local companies to take export markets seriously and counter the effects of trade deficit.
“Zimbabwe’s exports have increased since 2009 from $2,2 billion to $3,5 billion in 2013. On the other hand imports have increased at a faster rate during the same period from $3,5 billion to $7,7 billion. The trade deficit has therefore widened significantly from US$1,3 billion to US$4,2 billion thus weakening the country’s balance of payment and the country’s liquidity situation,” said Mr Nkala.
He said there were export opportunities in countries such as South Sudan, Malawi, Angola and Mozambique for agricultural inputs such as seed, chemicals, pesticides and fertilisers.
He urged local companies to increase their competitiveness by adopting new technology.
“A shift to a green economy will yield significant environmental and social benefits. Switching to more efficient manufacturing will save energy and resources and thus enable developing countries to produce goods for export at a lower price,” said Mr Nkala.
ZimTrade is the national trade development and promotion organisation. Its mandate is to help businesses in Zimbabwe to expand into regional and international markets and, at the same time, develop their internal capabilities to meet the challenges of global competition.
