In a positive turn of events for the nation’s economy, Zimbabwe’s trade deficit has witnessed a significant narrowing, a development welcomed by market access and opportunities company Buy Zimbabwe.
The company’s General Manager, Mr. Alois Burutsa expressed satisfaction with the trend where exports are growing, pointing out it is a movement in the right direction for Zimbabwe.
“As long as the trade deficit is narrowing, it shows that either we are getting more money coming in or we are reducing our imports. However, the increase in exportation has been accompanied by a worrisome rise in imports, which concerns the Buy Zimbabwe agenda.”
According to trade statistics released by Zimstat, the October trade deficit reduced by 24.6%, resulting in a 26.4% decrease in the amount of money spent on imports compared to September. This narrowing gap between imports and exports signifies a positive shift towards a more balanced trade scenario, indicating a strengthening of the nation’s economic fundamentals.
“In October, Zimbabwe’s exports experienced a significant growth of approximately 22.7%, reaching USD$831 million. However, imports also saw a notable increase of 16.7%, totaling USD$901 million. Among the top imported goods were fuel, despite having domestic ethanol production capacity, as well as aircraft and spacecraft machinery, vehicles, fertilizers, plastics, iron and steel, cereals, and machinery. The importation of machinery is seen as a positive sign, indicating companies’ commitment to retooling and upgrading their production capabilities,” Burutsa said.
The reduced trade deficit is expected to have far-reaching implications for Zimbabwe’s economy. With a greater emphasis on local production, there is potential for job creation, improved industrial capacity utilisation, and enhanced export opportunities. There is therefore a need to decrease importation.
Burutsa indicated the need for due diligence before import decisions are taken.
“Before we import there is need to see how best we can capacitate our local producers to ensure that they able to meet local demands so that we can avoid importation”. he said.
While acknowledging the progress made in narrowing the trade deficit, Buy Zimbabwe remains vigilant about the increase in imports. The organisation continues to prioritize the promotion and support of local industries, advocating for policies that promote domestic production, and educating consumers about the importance of buying Zimbabwean products.
This week they are running the Buy Zimbabwe Week to raise top of mind awareness on the need to buy local products at a time consumers have more disposable incomes from end of year bonuses.
