- Zimbabwe's trade deficit narrowed for the first time in 2025, reaching US$118.7 million in April
- The improvement was driven by the highest monthly exports recorded, particularly in gold and nickel mattes
- Gold production in April surged to 3.82 tonnes, the highest output for April since December 2021
Harare-Zimbabwe's trade deficit has narrowed for the first time in three months, reaching US$118.7 million in April 2025, a 49.5% decrease from the March deficit of US$235.2 million, according to the latest Zimstat data.
The improvement in the trade balance was driven by a surge in exports particularly in gold and nickel mattes against imports which trended downwards, since January this year.
The escalation of global geopolitical tensions has significantly enhanced the intrinsic value of gold, as investors pivot toward safe-haven assets, driving the metal's price to unprecedented levels, reaching a record high of US$3,500 per ounce.
Consequently, gold production for the month of April surged to 3.82 tonnes, the highest April output since December 2021 when 4.3 tonnes were produced.
Gold exports exhibited exceptional growth, reaching US$303.9 million, the second-highest record in Zimbabwe's history since US$361 million in November 2024.
The country's major export destinations in April 2025 included the United Arab Emirates (49.8% of total exports), South Africa (24.0%), and China (15.9%).
These three countries accounted for around 90% of the total export value of US$662.6 million.
Meanwhile, imports slightly declined by 4.5% to US$781.3 million from US$818.3 million.
This was at the back of maize imports that went down from US$686.9 million to US$393.3 million, a 43% decline.
Soya bean oil decreased to 193 million from 263.1 while motor vehicles for the transport of goods were at US$183.6 million from US$222.7 million in March.
However, the composition of imports shifted toward higher spending on petroleum oils, motor vehicles, machinery, and cereal, exacerbating the deficit.
Despite the improvement in the trade balance, Zimbabwe's economy still faces structural weaknesses, including over-reliance on a narrow import base, inefficiencies in production, band external pressures.
To address these challenges, the government needs to implement urgent policy interventions.
ZimTrade, the country's trade development agency, aims to increase exports by at least 10% each year to reach US$14 billion by 2030, supporting the government's goal of achieving upper-middle-income status.
The growth in gold exports is a positive development, but the sector continues to encounter challenges in meeting government targets.
One major issue is the restriction on selling gold directly to the London Bullion Market, resulting in reduced earnings and increased costs.
Electricity deficits compel firms to rely on costly backup power solutions, inflating operational costs and impeding productivity.
To mitigate these issues, a consistent electricity supply for gold miners is essential, and the government should consider lowering taxes and streamlining regulations for the sector.
Gold remains Zimbabwe's most significant export commodity, accounting for approximately one-third of all exports and generating 60% of the country's foreign currency receipts.
Incentivising both large-scale and small-scale miners is vital for enhancing overall output. Key players in the large-scale gold production space include Kuvimba Mining, Padenga, and Freda Rebecca.
To increase gold production, the government must intensify efforts to combat gold leakages, which are costing the country billions in lost income, and consider reducing surrender requirements for gold mining firms.
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