Published: 03 June 2025

Zimbabwe recorded a trade deficit of US$228 million in March 2025, marking a significant increase from US$217.9 million in February and US$185.9 million in March 2024. The latest figures released by the Reserve Bank of Zimbabwe (RBZ) highlight the country's growing reliance on imports and its continued struggle to boost domestic manufacturing and export competitiveness.

According to the RBZ, merchandise imports rose sharply to US$809.9 million in March, reflecting a 10.9% increase from the previous month. On a year-on-year basis, imports were up 12.4%. This growth in import expenditure comes amid sluggish export performance, largely driven by unprocessed primary commodities, which fetch lower returns on the global market.

Zimbabwe's import bill was mainly sourced from South Africa, China, the Bahamas, and Mozambique, with the rest coming from a diverse range of other countries. On the export side, the country's earnings were heavily dependent on minerals and agricultural raw materials. Gold dominated the export basket, accounting for 42.4% of total exports, followed by tobacco at 17.1%, platinum group metals at 16.0%, and other minerals at 6.7%.

The country's major export destinations during the period were the United Arab Emirates, which received 40.7% of exports, South Africa with 24.4%, and China with 20.8%. The rest of Zimbabwe's exports were distributed among various international markets.

Economic observers have expressed concern over the widening trade imbalance, pointing to the urgent need for Zimbabwe to ramp up industrial production and reduce its dependency on imports. Analysts say that without significant investment in manufacturing and value addition, Zimbabwe's foreign currency reserves will remain under pressure, threatening the stability of the local currency and broader economic recovery efforts.

"The trade deficit reflects structural inefficiencies in our economy. We need to adopt bold policies that promote local production and reduce our appetite for imports," one economic analyst commented. "If this trend continues unchecked, it will exacerbate currency volatility and constrain national development goals."

The widening deficit underscores the challenges facing Zimbabwe in its efforts to implement the National Development Strategy 1, which includes goals to stimulate industrial growth, increase exports, and reduce trade imbalances. The Reserve Bank and government authorities are expected to intensify efforts to encourage investment in manufacturing, improve export competitiveness, and reduce the import bill in order to safeguard economic stability.
- NewZimbabwe

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