Zimbabwe’s trade deficit narrowing

Zimbabwe’s trade performance seems to be moving in the right direction with latest statistics showing a decline in imports and a significant increase on the export side

Latest figures from June to July this year revealed that exports have increased by almost 20 percent while imports have declined by around 40 percent.

This comes at a time when addressing the unfavourable trade performance will require the government to resuscitate the agricultural sector to reduce the influx of imports, 75 percent of which comes from South Africa.

Research Economist, Dr Prosper Chitambara said Zimbabwe is on the right track in as far as dealing with trade deficit is concerned.

“Statistics are encouraging as the trade deficit is narrowing, which on its own is a good economic indicator,” said Dr Chitambara.

Critical in addressing trade deficit would be the promotion of value addition and beneficiation, investing in research and development on new innovations, technology, processes and products.

Prioritisation of industrial clusters through agglomeration of interlinked production activities is also critical.