Zimbabwe imports drop 31%

Zimbabwe imports drop 31%
Published: 12 June 2019 (134 Views)
Zimbabwe's imports for the first four months of the year to April 2019 dropped 31 percent to US$1,5 billion from US$2,2 billion registered in the same period last year, as the country's import bill continues to decline, Reserve Bank of Zimbabwe Deputy Governor Kupukile Mlambo has said.

Exports have, however, remained stagnant at US$1,2 billion the same as recorded in the same period last year. During the period under review the country's trade deficit narrowed 299 percent from US$1 billion in the first five months of 2018 to US$300 million this year.

Trade deficit refers to the amount by which the cost of a country's imports exceeds the value of its exports. Simply put, a trade deficit implies that a country is losing most of its currency reserves to its trading partners.

Dr Mlambo told industrialists recently that the country's imports had significantly lowered compared to the same period last year.

" . . . For the balance of payment statistics for the first four months of this year, we have exported goods worth US$1,2 billion and we have imported goods worth US$1,5 billion so our deficit is worth around US$285 million.

"When you look at that amount, it's much lower than we had last year during the same period, but when you add that and you look at what we call non-proofing (households) institutions they imported from their own retention goods worth US$235 million so again I am puzzled with these kinds of (money) that are available. Why is this market not working so clearly?" said Deputy Governor Mlambo.

Zimbabwe has been experiencing trade deficits due to low exports, usually of unprocessed items such as tobacco and minerals, and a ballooning import bill, mainly for consumptive goods.

The country is a net importer of fuel and capital goods. The firming United States dollar has also made Zimbabwe's products more expensive and exports to the region uncompetitive.

Analysts say the trade deficit experienced last year shows the economy has less competitive exports relative to the region partly as a result of operating with a firm US dollar. However, President Mnangagwa's Government is battling to rebuild the economy by — among others things — improving the domestic investment climate, supporting key production sectors and reintegrating Zimbabwe into the global community.

With the economy structurally dislocated and production subdued in many sectors, a narrower trade deficit coming on the back of expanding exports and falling imports will always help breathe new life in the economy.

Government has also been making several policy interventions to make sure that it grows its exports. Some of these include drafting of the National Quality Policy to make sure that local industries produce quality goods which meet the conformity standards of international markets as the country seeks to tap into the 1,2 billion people market which is being created through intra-African trade through the African Continental Free Trade Area (AfCFTA).

The Ministry of Industry and Commerce has also submitted that its strategic focus will be based on seeking private sector funding to the tune of US$2 billion to make sure that local industries retool to get production on board and cater for the export markets.

- the herald

Tags: Imports, Zimbabwe, Drop,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Zimbabwe govt expenditure problem

by Clemen Moyo ka Mangena | 15 September 2019 | 3 Views

Sympathy for the devil

by Zimbabwe Vigil Diary | 15 September 2019 | 4 Views

ZINARA Employees stealing from government and motorists

by Munya Shumba | 15 September 2019 | 3 Views

ZAPU in its bravest rebranding and transformation exercise

by Sakhile Sibanda | 15 September 2019 | 3 Views

Mugabe's death breathes life into sleepy Zvimba

by Staff reporter | 15 September 2019 | 3 Views

Zimbabwe's success inevitable, says Mnangagwa

by Staff reporter | 15 September 2019 | 161 Views

Mugabe died a sad man

by newzimbabwe | 15 September 2019 | 186 Views

Zinara looters put on notice

by Staff reporter | 15 September 2019 | 159 Views

Ramaphosa apologises for xenophobia

by Staff reporter | 15 September 2019 | 112 Views

Mugabe funeral programme shifts to Zvimba

by Staff reporter | 15 September 2019 | 201 Views

Zimbabwe nears SA industry loans deal

by Staff reporter | 15 September 2019 | 117 Views

Crafty Bob is not just history but our history

by Bishop Lazi | 15 September 2019 | 122 Views

G40's ahistorical narrative

by Ranga Mataire | 15 September 2019 | 111 Views

A too-comfortable end for Mugabe

by Jason L Riley | 15 September 2019 | 134 Views

Mnangagwa may not revenge against Grace Mugabe

by newzimbabwe | 15 September 2019 | 107 Views

Final salute for Robert Mugabe

by Staff reporter | 15 September 2019 | 76 Views

'The West is upset about Zimbabwean land'

by Prof Arthur Mutambara | 15 September 2019 | 126 Views

South Africans need a history lesson

by Mtandazo Dube | 15 September 2019 | 117 Views

'Foreigners can now invest in Zimbabwe's restricted sectors'

by Staff reporter | 15 September 2019 | 132 Views

Grace Mugabe praised

by Staff reporter | 15 September 2019 | 117 Views

Zesa, BCC agree on compensation for power station use

by Staff reporter | 15 September 2019 | 106 Views

The 'Zimbabwean' mogul in SA police's crosshairs

by Staff reporter | 15 September 2019 | 139 Views

Can Bosso stand Colliery heat?

by Staff reporter | 15 September 2019 | 83 Views

ZB Bank introduces WhatsApp banking

by Staff reporter | 15 September 2019 | 77 Views

Sables beat Zambia, win Victoria Cup

by Staff reporter | 15 September 2019 | 62 Views

College charges extra on EcoCash

by Staff reporter | 15 September 2019 | 37 Views

Concern over sharp increase in armed robbery cases

by Staff reportetr | 15 September 2019 | 43 Views

'18 people living in one room'

by Staff reporter | 15 September 2019 | 58 Views

Zimbabwe stuck with expired medical drugs, says committee

by Staff reporter | 15 September 2019 | 46 Views

Mugabe: The socio-genesis, posterity of Pan-Africanism

by Richard Runyararo Mahomva | 15 September 2019 | 100 Views

Bulawayo City Council workers demand housing stands

by Staff reporter | 15 September 2019 | 30 Views

The installation of the Lozwi King at Emawabeni

by Pathisa Nyathi | 15 September 2019 | 98 Views

Graca Machel: Appreciate Mugabe's role in Zimbabwe

by Staff reporter | 15 September 2019 | 37 Views

Gukurahundi victims react to Mugabe death

by Staff reporter | 15 September 2019 | 39 Views

The other side of Mugabe

by Nqaba Matshazi | 15 September 2019 | 68 Views