- Zimbabwe's trade deficit surged to $196.9 million, a 318.2% increase from $46.9 million in November 2024, which was the lowest deficit since November 2021
- Gold exports, which led total exports, decreased by 19% to $291.8 million from $361 million in November
- Exports of nickel mattes, the third-largest export, dropped by 39% to $61 million from $99.5 million
Harare-Zimbabwe's trade deficit has surged significantly to US$196 million, representing a 318.2% increase from $46.9 million in November 2024, which was the lowest deficit since November 2021.
Gold exports which headlined the total exports declined by 19% to $291.8 million from $361 million in November 2024, a record high despite maintaining production output. This was largely due to a decrease in gold prices during the month compared to November as the US dollar strengthened on Trump economic bets.
However, gold exports reached a record high of 36.48 tonnes for the entire year, and the generated value of $2.5 billion also marked a record in Zimbabwe’s history.
Tobacco exports dropped by 43% to $158.6 million from $280 million, as most of the tobacco produce is sold in November.
Nickel mattes, the third-largest export, decreased by 39% to $61 million from $99.5 million. This resulted in a 23.5% decline in total exports from $905.2 million in November to $692.4 million in December.
In terms of export destinations, the United Arab Emirates (UAE), South Africa, and China accounted for 87% of the total export value of $692.4 million.
Conversely, imports declined by 6.6% from $952.3 million to $889.3 million, largely driven by a 12% drop in fuel purchases.
Diesel imports decreased from $115.5 million to $95.5 million, possibly due to earlier stockpiling or adjustments to global oil price fluctuations.
There was also a partial decrease in crude soyabean imports from $33.1 million to $22.1 million, herbicides from $41.1 million to $21.8 million, and electricity from $16.1 million to $14.7 million.
This decline in electricity imports was attributed to increased electricity generation following the resumption of Hwange Unit 8 and increased generation at Kariba, as water levels partially rose, as well as an increase in production from independent power producers (IPPs) during the period.
However, maize imports increased by 38% to $84.7 million, as the drought induced by El Niño necessitated greater importation.
Reflecting the seasonal demand for agricultural inputs as the farming season began, insecticide imports rose by 186% to $25.1 million from $8.8 million.
South Africa was the primary supplier, providing 39.3% of total imports, followed by China, the Bahamas, and the UAE.
To build resilience, Zimbabwe must prioritize diversifying its export base, moving beyond its heavy reliance on primary commodities by investing in value-added sectors such as agro-processing and manufacturing.
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