Economic and Commercial

The functions of the Commercial and Economic Section includes the following;
strengthening of economic,  trade, and investment cooperation with the Peoples Republic of China (PRC) and countries that it is accredited to, through the timeous provision of adequate information on business opportunities;
promotion of Zimbabwean products through participation in fairs, expos, and related events/foras to increase exports;
response to enquiries from local companies, associations, and individuals, as well as Zimbabwean Diaspora; and
Assistance to Zimbabwean companies in conducting due diligence.   

Following the ushering in of the Second Republic and a New Dispensation in 2018, Zimbabwe adopted “Vision 2030” as its guiding vision. The Vision entails transforming the country and its people into an upper middle-income status, which will be achieved through implementation of a raft of economic reforms anchored on key the tenets of macroeconomic stability, the rule of law and good governance.

  In keeping with the new mantra “Zimbabwe is open for Business”, the country embarked on a “Re-engagement and engagement thrust in order to forge mutually beneficial relationships with the international community. As such, the country’s focus of its Diplomatic Missions abroad was redefined to embrace Economic Diplomacy as a key pillar and deliverable.

Vision 2030

  Vision 2030 reflects the collective aspirations and determination of the people of Zimbabwe “Towards a Prosperous and Empowered Upper Middle Income Society by 2030”.

  Vision 2030 will be realized through the implementation of two successive Five Year National Development Strategies namely NDS1 (2021-2025) and NDS2 (2026-2030)

Vision Goals and Targets

  The Overall Vision Target is to be “a prosperous and empowered Upper Middle Income Society by 2030, with job opportunities and a high quality of life, with less income disparities. The other targets are:

☆ GN1 per capita of above US$ 4000.

☆ Employment Rate of more than 80%.

☆ Reduction in Poverty rate to under 25% of the Population from  62.5%(2012) consistent with upper middle income economies.

☆ Increasing the number of households accessing electricity from 52% in 2017 to over 72% by 2030. Universal access to improved sources of water, up from 77.3% in 2020 to 90% 2025.

☆ Average life expectancy of over 65 years from 61 years.

☆ Stable Macro-economic Environment and economic transformation sustained by high productivity levels.

☆ A fiscal policy framework that allows for realization of budget savings.

☆ Speeding up the On-going “Ease of Doing Business” reforms to reduce the cost of doing business, and

☆Successful Engagement and Re-engagement with the international community.

National Development Strategy 1

  Vision 2030 will be implemented through the first National Development Strategy1 which will run from 2021 to 2025, with the thrust of economic stability and growth rates of above 5% in order to achieve the Vision 2030 objectives. The NDS1 contains strategies, programmes and projects aimed at addressing the challenges that were identified in the fourteen (14) key National Priorities.

  For more information pertaining to the National Development Strategy 1 (2021-2025) i.e. its Architecture, Development Process and Pathway to the Realization of the Fourteen (14) National Priorities, Funding Arrangements for the Plan, and Projects and Programme Delivery, please visit the Ministry of Finance and Economic Development website www.zimtreasurey.gov.zw and webmail nds1@gov.zw.

TRADE

  Trade is a key cog in the country’s development matrix. Trade has been a driver of economic growth, rising incomes and progressive empowerment of Zimbabweans through rising standard of living and promise of better jobs. Trade is taking on a key significance with the coming in of the African Continental Free Trade Area which will enhance the movement of goods and services across borders and strengthen the development of regional and continental value chains.

Objectives

• The objectives of Zimbabwe’s Trade Policy as contained in the draft of the National Trade Policy 2012-2016 are to “elevate trade as the engine of growth for sustainable economic growth and development and to stimulate the productive sectors of the economy towards higher productivity, efficiency and international competitiveness.”
• Agriculture, mining and tourism are the main pillars of the Zimbabwean economy which have succeeded in development strong export industries in each of these sectors. Consequently, exports of agriculture commodities and minerals account for nearly 90% of total merchandise exports. While manufacturing has been in decline, Zimbabwe still retains a relatively large and diversified manufacturing base with the potential for growth.

Exports

  The country’s major exports during the period 2009 to 2020 consisted of nickel mates and oxides (22%), Semi manufactured gold (22%), Unmanufactured tobacco (17%), nickel ores and concentrates (14%), Diamonds (3%), ferro Alloys (3%), Semi manufactured Platinum (3%), Jewellery (2%), Chromium Ores and concentrates (1%), and other (11%). The country’s exports have continued to be dominated by primary commodities as opposed to value added products and services. Main Export Destinations in 2020 were South Africa ($ 1.73 billion), United Arab Emirates ($891 million) , Mozambique ($ 407.5 million), China ($ 193 million), and Uganda ($ 127 million).

Imports

  Imports on the other hand have largely been made up of refined petroleum ($574 m) maize ($ 232 m) Electricity ($ 152 m) Delivery trucks ($ 150 m) and Packaged Medicaments ($ 122m). The country’s main imports came from South Africa $ 2.46 billion (49%), China $ 451 million (9%), Singapore $ 549 million (11%), India $ 172 million (3%) and Mauritius $ 160 million (3%), Mozambique $ 136 million (3%). Zambia $ 111 million (2%), UK $ 90.1 million (2%), USA $ 55 million (1%) and Rest of the World $ 735 (16%).

Prospects for 2021 and beyond

  As the country strides towards achieving upper middle income status by 2030, backed by a strong export oriented economy, the 2021 performance figures released by Zimstat show huge strides towards achieving national targets.

  According to the latest statistics, between January- December 2021, exports stood at Us $ 6.03 billion, representing a 37.3% increase compared to Us $ 4.39 billion recorded in 2020. The US $ 6 billion dollar mark is the highest recorded figure to date.

  The jump in exports (37.3%) which exceeds the 10% envisaged in the National Export Strategy is on account of the country’s re-engagement initiative coupled with ZimTrade’s export development and promotion events.

  The increase in exports was however accompanied by an increase in imports although the bulk of the imports were raw materials and capital equipment being channeled into the local manufacturing sector to boost production.

Big Export Movers in 2021

43. Cotton to Clothing value chain: US $ 43.9 million to $ 102.2 – 132% increase
44. Arts and Crafts sector: $ 5.2 million to $ 8 million – 56.6% increase

• Horticulture sector: $ 59.5 million to $ 63.6 million – 6.8% increase

The major contributors under horticulture were Macadamia nuts ($13.9 million) citrus, ($10.9 million), Leguminous vegetables ($4.2 million) and fresh flowers ($3.2 million)

53. Manufactured tobacco: $ 53.6 million to $ 56 million – 4.5% increase
54. Cigars and cigarettes: $ 26.3 million to $ 35.4 million –

Potential for higher exports is expected from implementation of the following initiatives:

1. Skipping up value addition to raw cotton
2. Organizing business linkages between local artists and overseas buyers
3. Participation of local artists in external exhibitions
4. Horticulture Recovery and Growth Plan
5. Value Chain Strategy in the production of tobacco.