HARARE – Zimbabwe’s trade deficit contracted significantly by 66% to US$46.9 million in November 2024, driven by robust export growth in key sectors such as gold and tobacco, according to the Zimbabwe National Statistics Agency (ZimStat).
A trade deficit measures the gap between a country’s exports and imports, with a narrowing deficit often regarded as a positive sign for conserving foreign currency reserves and bolstering economic stability.
In its latest report, ZimStat highlighted the sharp reduction from October’s trade deficit of US$137.8 million, underscoring improved export performance.
“Zimbabwe’s goods trade deficit for November 2024 was US$46.9 million, a 66% decrease from the October 2024 deficit of US$137.8 million,” ZimStat noted.
November’s exports surged to US$905.2 million, marking a 29.7% increase from October’s figure of US$698.1 million. The surge was largely attributed to higher revenues from semi-manufactured gold, tobacco, and nickel mattes.
These three products accounted for the bulk of the export earnings, with gold contributing 39.7%, tobacco 30.5%, and nickel mattes 11%.
Zimbabwe’s top export destinations included the United Arab Emirates (40.5% of total exports), China, and South Africa, each accounting for 19.9%. Together, these markets constituted approximately 80% of the country’s export value for the month.
On the import side, November saw a 13.9% increase to US$952.1 million, up from US$835.9 million in October. Key imported items included mineral fuels, machinery, cereals, and vehicles, accounting for 22.1%, 11.9%, 9.1%, and 7.6% of the total import value, respectively.
Despite the rise in imports, the strong export growth significantly reduced the trade imbalance.
Zimbabwe’s total export value in 2023 rose by nearly 10% to US$7.2 billion, compared to US$6.59 billion in 2022. The Government has set ambitious targets under the National Development Strategy 1 (NDS1), aiming to increase annual exports by at least 10% to reach US$14 billion by 2030.
NDS1, a five-year economic blueprint set to conclude in 2025, focuses on achieving economic growth and stability while laying the groundwork for Zimbabwe’s transition to an upper-middle-income society by 2030. Its successor, NDS2, will carry forward these objectives from 2026.
Significant strides have been made under NDS1, with most projections being met across 14 priority areas, including economic growth, environmental protection, social services, and human capital development.
“The Government’s commitment to implementing NDS1 targets has been instrumental in driving export growth and improving economic stability,” said an official from ZimTrade, the country’s trade promotion agency.
As Zimbabwe continues to strengthen its trade performance and economic framework, the narrowing of the trade deficit signals progress towards achieving its long-term developmental goals.
