- Trade deficit increased to USD 158.5 million in June 2025
- Nickel and coal were the leading exports under SADC and AfCFTA frameworks, but the benefits of these trade agreements remain uneven
- Historical reliance on a narrow export base and imported essentials continues to strain Zimbabwe's trade balance
Harare- Zimbabwe’s trade deficit widened to USD 158.5 million in June 2025, a 2.9% increase from May’s USD 154.0 million, despite record gold exports and influence of regional trade policies under frameworks like SADC, AfCFTA, COMESA, and the EU’s Economic Partnership Agreement (EPA).
These policies shape Zimbabwe’s trade dynamics, but structural challenges and policy implementation gaps within continue to exacerbate trade imbalance.
Historically, Zimbabwe’s trade deficit has persisted, averaging USD 100-150 million monthly in 2024, driven by a narrow export base and heavy reliance on imported capital goods and food.
Zimbabwe’s participation in the Southern African Development Community (SADC), African Continental Free Trade Area (AfCFTA), and Common Market for Eastern and Southern Africa (COMESA) aims to boost intra-African trade and reduce tariffs, yet the benefits remain uneven.
In June 2025, SADC and AfCFTA exports were dominated by nickel mattes (42.0% and 41.6%, respectively), coke/semi-coke of coal (8.8%), and semi-manufactured gold (7.9% and 7.8%), reflecting Zimbabwe’s commodity-driven export profile.
The SADC AfCFTA Coordination Plan, validated in March 2025 in Harare, emphasises harmonising trade policies and enhancing industrial competitiveness, but non-tariff barriers like import bans and logistical inefficiencies hinder progress.
AfCFTA, operational since January 2021, targets 90% tariff liberalisation over a decade, yet Zimbabwe’s exports to AfCFTA markets mirror SADC patterns, indicating limited market diversification beyond traditional partners.
COMESA, with its 21-member preferential tariff system, facilitates exports like iron/steel products (18.6%) and tobacco cigarettes (18.3%) but faces challenges from overlapping trade agreements and slow progress in eliminating non-tariff barriers, such as corruption and border delays.
Imports from COMESA, including cereals (23.4%) and electrical machinery (11.7%), reflect Zimbabwe’s reliance on regional food and industrial inputs, further straining the trade balance.
The Tripartite Free Trade Area (TFTA), effective since July 2024, unites COMESA, SADC, and EAC to streamline trade, but infrastructure deficits and policy harmonisation issues limit its impact on Zimbabwe’s trade performance.
The EU-Zimbabwe interim EPA, signed in 2009, grants duty-free and quota-free access for exports like tobacco (30.9%), ferro-chromium (25.9%), and industrial diamonds (24.3%), boosting Zimbabwe’s access to European markets.
However, high-value imports like aircraft parts (47.9%) and machinery (10.3%) from the EU inflate the deficit.
The EU-Zimbabwe Business Forum in May 2025 aimed to enhance trade in horticulture, renewable energy, and mining, but Zimbabwe’s ability to leverage these opportunities depends on addressing logistical and financial constraints.
Despite record gold exports of USD 394 million in June 2025, driven by global demand, the trade deficit persists due to rising wheat imports and declining nickel mattes exports.
Regional trade policies offer potential for market access, but Zimbabwe’s heavy reliance on primary commodities and imported essentials limits their effectiveness.
Historical data suggests that without diversifying exports and improving infrastructure, as emphasized in SADC’s Industrialisation Strategy, Zimbabwe’s trade balance will remain under pressure.
Policy coordination, private sector engagement, and resolution of non-tariff barriers are critical to unlocking the full potential of these trade agreements.
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