Minerals and alloys remain the largest contributor, contributing 78 percent to total exports between January and May 2024 although the mining sector’s contribution slightly declined from 79 percent in the same comparative period the previous year, revealed Zimtrade in its latest website update.
“Minerals and alloys continue to dominate, contributing 78 percent to total exports, though this is a slight decrease from 79 percent the previous year,
“Exports in this sector grew by four percent, reaching US$2,13 billion from US$2,05 billion, reflecting stable demand and value.
“Gold exports alone amounted to US$739 million, marking a significant increase from US$652 million in 2023.
“The introduction of a zero-rating policy for gold deliveries to Fidelity aims to stimulate this sector further by removing the 15 percent VAT previously applied,” said ZimTrade.
This policy is expected to encourage more gold sales through official channels rather than informal ones.
Zimbabwe is witnessing a remarkable growth in the export sector, with recent figures showing that external trade went up by 8.7 percent between January and May this year, compared to same period last year.
Statistics recently released by Zimstat shows that exports grew to US$2.82 billion, from US$2.59 billion recorded during the review period last year.
Concerted efforts by the Ministry of Foreign Affairs and International Trade, together with key organizations like ZimTrade – the national trade development and promotion agency – have been unlocking new economic opportunities from the nation’s stellar diplomatic relations.
These efforts, targeted at fostering international partnerships, have drawn renewed global attention to Zimbabwean products, with more buyers looking to do business with local exporters.
These partnerships have also opened new markets and opportunities for local products, which are now being recognized for their exceptional quality on the world stage.
This quality advantage has helped Zimbabwean products stand out in competitive international markets.
Buyers from around the world have expressed a preference for Zimbabwean products, citing their exceptional quality and reliability.
This preference is not only a boon for Zimbabwean exporters but also a positive indicator of the country’s potential to become a major player in global trade.
Further to the substantial growth in exports, there has been a notable reduction in the trade deficit.
Figures show that imports grew by a mere 0.8 percent, from US$3.56 billion in 2023 to US$3.59 billion this year.
This modest increase in imports, combined with the substantial growth in exports, has led to a significant reduction in the trade deficit.
For the period under review, the trade deficit stood at US$733 million, a massive 20 percent drop from the US$972 million recorded during the same period in 2023.
This reduction is a clear indication that Zimbabwe is successfully cutting down on imports while boosting its export revenue, thereby improving the overall trade balance. – ENDS//
