- Manufactured export revenue has increased by 5.5%.
- the US$24 million revolving facility established by IDCZ three years ago had resulted in the saving of 7 000 jobs and the creation of 2 000 additional ones.
- Manufactured items largely contributing to exports are tobacco, textiles, and packaging.
Harare - Manufacturers in Zimbabwe are reportedly stepping in to relieve the trade deficit that has been accumulating for almost a decade, according to a State of Industry report. Despite a decline in productivity in the final quarter of 2022 due to unreliable power supplies that have caused at least 60% of listed companies to post worsened financials, export revenue has increased by 5.5%.
According to the report, the main industries for manufactured export items included processed food, manufactured tobacco, textiles, and packaging, and growth rates reached their fastest levels in years. Manufactured exports increased from US$ 383 million to US$ 404 million, according to a report recently submitted to parliament.
The report stated that the US$24 million revolving facility established by the Industrial Development Corporation of Zimbabwe (IDCZ) three years ago had resulted in the saving of 7 000 jobs and the creation of 2 000 additional ones.
Devised in the report is the need to strategize on diversification while emphasizing companies' ability to capitalize on the market access opportunities being offered under the existing bilateral, regional, and multilateral agreements between Zimbabwe and other nations and trading organizations.
The Ministry of Industry and Commerce in Zimbabwe has unveiled a bold new strategy with the goal of reducing the country's import bill. As part of this plan, major steel-processing firms have already invested over US$1 billion into their projects, which are underway to utilize local resources, create new jobs, and stimulate local economic growth.
The strategy runs between 2022 and 2026 and is projected to create an industry valued at US$6 billion in revenue and employ over 50,000 people. This investment and strategy are critical to Zimbabwe's recovery from the economic losses it suffered in the past.
Zimbabwe has signed the African Continental Free Trade Agreement (AfCFTA) in order to strengthen intra-African trade, which Minister of Foreign Affairs and International Trade Dr Ellen Gwaradzimbi Nzenza believes will benefit the country.
"The country joined this economic block on the background of significant potential economic benefits that Zimbabwe can accrue in terms of improved exports that are set to increase into the rest of the continent," she said in an interview last year.
Equity Axis News
