Zimbabwe on the right track- Foreign Minister

Mr Speaker, let me turn, now, to the field of international trade where, I believe, our performance over the past 2 years or so, as per Zimtrade, Zimra and ZimStat certification provides further evidence of  the success of (i) our policy of Engagement and Re-engagement, (ii) the determination of our exporters, and (iii) the innate resilience of our diversified economy, notwithstanding our multifaceted challenges -including the continued imposition, by some, of sanctions and other punitive measures.

Let me start with some statistics. Total merchandise exports in 2018 were US$ 4.04 billion.  Total imports amounted to US$ 6.5 billion.  Giving us an unsustainable trade deficit of US$ 2.45 billion. Total merchandise exports in 2019 were US$ 3.98 billion, down by 1.5% from 2018.

Total imports in 2019 were US$ 4.5 billion, down by 31.5% from 2018, and giving us a trade deficit of approximately US$ 500 million  –  down by 81% from the deficit recorded in 2018.

Obviously, 2020 figures are not yet complete.  However, total exports over the period January to end August, 2020, totalled US$ 2.56 billion : representing a 4.9% increase in our export performance over the same period in 2019. A 4.9% increase in exports.  Under current circumstances – under sanctions Mr Speaker, Sir, that is indeed progress and further validation of the policy of Engagement and Re-Engagement.

Total imports over that same period, January to end August 2020, totalled US$ 2.96 billion; down from US$ 3.16 billion recorded for the same period in 2019. Our trade deficit at the end of August, 2020, therefore stood at US$ 400 million, a 44% drop from the US$ 719 million recorded at the same time last year.

Mr Speaker, I will not go into great detail in terms of breaking down the various exports and imports, but I would like to highlight a number of important facts. Firstly, we remain, essentially an exporter of raw, un-processed or, at best, semi-processed goods and commodities.

Government is fully committed to changing this situation; to supporting and facilitating industrialisation and the modernisation of our industries so that they may beneficiate and add value to products which, today, we export in raw or unprocessed form.  Minerals and Un-manufactured Tobacco remain our biggest export revenue earners, with Minerals generating US$ 2.17 billion in export revenue in 2018 and US$ 2.4 billion in 2019  –  and accounting for 53% and 59 % of total exports, by value, in 2018 and 2019, respectively.

Un-manufactured Tobacco generated US$ 864 million in 2018, and slightly in excess of US$ 700 million in 2019, constituting 21% and 17% of total exports, by value, respectively, in those two years.  Figures for 2020  –  again covering the period January to end August  –  confirm Mineral exports of US$ 1.98 billion, up almost 8% over exports during the same period in 2019, and constituting 77%, by value, of total exports over those 8 months.

Unmanufactured Tobacco exports generated US$ 312 million over the period January to end August, 2020, up almost 12% over the same period of 2019 and constituting 12% , by value of total exports during that period.

Continued next page

(332 VIEWS)