Zim narrows trade deficit by 62% since 2015

Zim narrows trade deficit by 62% since 2015
Published: 19 October 2017
Zimbabwe has made significant strides over the last two years in reducing its trade deficit from $3,5 billion in 2015 to $1, 3 billion presently. ZimTrade board chairman Lance Jena revealed the statistics during the trade promotion body's annual Exporters Conference this morning.

"As an overview of the road which we have traveled as a nation, Zimbabwe's trade deficit in 2015 was $3, 5 billion and this reduced to $2, 4 billion in 2016. For the eight months to August 2017, the trade deficit is $1, 3 billion," said Mr Jena.

The decline in the trade deficit is largely in part due to efforts the Government has been putting in place to limit unnecessary imports as well as boosting exports.

Last year, for example, the Government gazetted SI-64 of 2016 which removed more goods that can be manufactured locally from the Open General Import Licence exemption.  Its overall objective was to support the fragile local industry from unfair competition, that way, facilitating employment creation and gross domestic product (GDP) growth.

"Major export products in the period under review include minerals (gold, nickel, ferro-chromium and industrial diamonds), cane sugar, tobacco and black tea. These products are mostly commodities and value added products contribute a mere 15 percent of the exports," added Mr Jena.

Meanwhile, the Government has since consolidated all various importing licensing statutory instruments under the new Statutory Instrument 122 of 2017, which was promulgated last month.

Said Industry and Commerce Minister Dr Mike Bimha: "Government removed all except four (4) strategic products from export licensing requirement as gazetted through Statutory Instrument 122 of 2017. SI-122 of 2017 repealed Statutory Instrument 64 of 2016 with all various importing licensing statutory instruments now consolidated under the new SI for ease of reference in doing business.

"It is my expectation that Government departments that have not implemented recommendations of the 200-days Rapid Results Initiative (RRI) to accelerate the synchronization and amendment of export regulations and procedures that fall under their purview to do so without further delay."
- bh24
Tags: Tradedeficit,


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