ZimTrade Predicts Export Growth – The Standard

BY MTHANDAZO NYONI

Trade promotion and development agency ZimTrade says Zimbabwe’s exports will continue on the known growth path throughout this year until December.

Growth has been supported by reforms aimed at developing and promoting relationships that facilitate export growth.

“Zimbabwe’s exports in recent months have followed an upward trend and are expected to continue to grow throughout the year,” ZimTrade said.

Cumulative export earnings increased to US $ 2.31 billion in the first half of 2021, compared to US $ 1.91 billion in the comparable period in 2020.

This represents a 20.8% growth in 2021, although trade was affected last year by severe lockdowns induced by Covid-19.

The agency said Zimbabwe has benefited from the positive fallout from the economic diplomacy strategy pursued by the Department of Foreign Affairs and International Trade.

Through the national export strategy, ZimTrade has organized export promotion programs.

“These missions have enabled Zimbabwean exporters to establish strong links with potential buyers in the Democratic Republic of the Congo and are expected to start trading as soon as they have concluded negotiations.

“There are several activities that the government is implementing through different ministries and agencies to improve the ease of doing business, which should lower the cost of doing business and improve income,” ZimTrade said.

“While these programs and activities will undoubtedly contribute to export growth, it is important that exporters understand the cost of their products as well as the payment terms that will ensure the success matrix of their products.

“Indeed, buyers who have expressed an interest in sourcing from Zimbabwe often note that local businesses have to be competitively priced and offer good payment terms.

“There are external and internal factors that affect prices, and these must be taken into account by the exporter on the final product. “

ZimTrade added that exporters should take advantage of the incentives that have been put in place to reduce the cost of the final product.

“Local exporters must register to trade under bilateral and multilateral trade agreements to which Zimbabwe is a signatory,” the organization said.

“These agreements are intended to stimulate and encourage trade between countries or groups of signatory countries, granting each other preferential treatment in the reduction or elimination of customs duties as well as the elimination or relaxation of quantitative restrictions.

“A reduction or elimination of the duty can give the exporter a substantial advantage over competitors from countries that do not have similar trade agreements.

“It’s important to recognize that pricing is one of the most important decisions the exporter faces.

“Foreign markets are very competitive and the prices of each product must be established according to the conditions prevailing in each market. “

The organization said negotiating sustainable payment terms is another critical factor that determines the success of an export business.

He said exporters should consult with their banks on the best method of handling each transaction.

Factors influencing the method of payment include the type of transaction, the nature of the commodity, the amount involved, the creditworthiness of the importer, political or economic conditions in the importing country, the financial condition of the exporter and the practices acceptable commercial.

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