- Market Access: The agreement enables Zimbabwe to tap into China's demand for 66,000 tonnes of avocados annually
- Production Growth: As Africa’s fifth-largest avocado producer, Zimbabwe anticipates a record production of 6,000 tonnes this year
- Strategic Partnerships: The summit not only focused on agriculture but also solidified partnerships in energy
Harare- Zimbabwe has signed a historic trade deal that paves the way for its avocados to be exported to the Chinese market for the first time during the Forum on China-Africa Cooperation (FOCAC) in Beijing.
This agreement was part of 17 signed between President Mnangagwa and Xi Jinping, opening access to a lucrative market valued at approximately US$151 million.
President Mnangagwa met also with Mr. Wang Pingwei, Chairman of Sinomine Resource Group Co. Ltd. Sinomine is a global mining company operating in over 40 countries and presided over a meeting between ZESA Holdings and TBEA Corporation of China. During this meeting, Memoranda of Understanding were signed to enhance power generation and distribution in Zimbabwe.
China imports 66,000 tonnes of avocados annually, and this new agreement provides Zimbabwe with access to this significant market, according to ZimTrade.
As Africa’s fifth-largest avocado producer, Zimbabwe expects to produce a record 6,000 tonnes of the fruit this year. Over the past decade, avocado exports from Zimbabwe have seen steady growth.
In 2021, the country shipped nearly 6,000 tonnes of avocados, representing a 7% increase from the previous year, with exports valued at nearly US$3 million.
This marked a 10% increase compared to 2020, with the most significant growth occurring between 2012 and 2013, when export value rose from about US$177,000 to around US$431,000.
The Horticulture Development Council has set a target to develop a US$1 billion export industry by 2030, which will require an annual growth rate of 30%.
Besides the new Chinese market, the main destinations for Zimbabwean avocados are the United Kingdom (UK) and the European Union (EU).
Europe is the largest market for Zimbabwean avocados, particularly the Hass variety, due to duty-free access provided under the interim Economic Partnership Agreement (EPA) between the EU and Eastern and Southern African (ESA) countries.
This partnership positions China as the largest investor in Zimbabwe and Africa as a whole. In 2023, trade between China and Zimbabwe amounted to US$3.12 billion, with Zimbabwe exporting goods worth US$1.71 billion and importing US$1.41 billion from China, according to data from the Chinese embassy in Harare.
Zimbabwe is now the fourth African country to meet the strict Chinese requirements to export avocados, alongside Kenya, Tanzania, and South Africa.
Equity Axis News
