NIGERIA says it expects commercial ties with Zimbabwe to improve as the two countries work to open up access to each other’s markets.
This comes as national trade development and promotion organisation, ZimTrade, this week disseminated results from a market survey it recently completed in Nigeria exploring the potential for Zimbabwean products in the West African country.
“Our expectation is that this platform creates more opportunities for Nigeria and Zimbabwe to boost and strengthen their bilateral economic relations, particularly as regards to importation and exportation of goods to both countries.
“We also expect to see the reinvigoration of various agreements between the two and also the exploration of other sectors like the entertainment industry, the music industry, the creative and arts industry, “Embassy counselor for Nigeria, Fred Odey, told The Financial Gazette shortly after the dissemination of the survey results.
“First, it will involve the two governments at the top level to concretise some of these agreements so that they could be a joint commission. This would create a platform for signing some of these MoUs so that we know that there is a direct trade relationship between the two countries.
“This will facilitate more exchanges in terms of goods and services between the two countries. Collaboration between airlines as well as operators such as DHL to facilitate the movement of goods will also be important.”
Nigeria has ratified the African Continental Free Trade Area.
“We are a pioneer and a strong member of that initiative. It is expected that the initiative will open the economy more and not be constrained by land barriers and geography anymore.
“We will be connected as Africa and as one economy where there will be free movement of goods from one part of Africa to another,” Odey said.
The market survey by ZimTrade, conducted from March 27 to April 7, 2023 in Abuja and Lagos, also targeted establishing initial contact with leading buyers in Nigeria. The survey focused on key sectors such as fast-moving consumer goods, horticulture, building and construction services, and essential oils.
According to ZimTrade, it revealed huge opportunities for Zimbabwean products across sectors, including services.
“The opportunities are there, particularly in the FMCG sector, that is grocery products and stuff that you generally find in a supermarket. Currently, we are exporting horticulture products to Europe. Nigeria also imports such products from Europe, China and United Arab Emirates,” Kupakwashe Midzi, client advisor with ZimTrade said.
“There are opportunities to start exporting fruits such as apples, peaches that we are growing out of Manicaland. We also have products such as peas that we are growing out of the Mashonaland provinces and potentially the Midlands and Matabeleland. And we also saw blueberries whose prices were even higher than the prices in Europe.”
There has not been much trade between Zimbabwe and Nigeria, and there is potential to improve in this area. According to Trade Map, exports to Nigeria have fluctuated over the years, having dropped between 2014 and 2018, from US$3,04 million in 2014 to US$700 000.
Exports have since gone up, steadying above US$3 million since 2019, signifying the improvement in trade between the two countries. The main products exported are tobacco and products of the milling industries.
According to the World Bank, Nigeria`s population in 2021 was estimated to be 213,4 million.
“This has created a huge demand for goods and services, making it an attractive market for businesses looking to export to Nigeria, hence, this presents room to grow Zimbabwe’s share of Nigeria’s total import bill, which stood at US$52,44 billion in 2021 according to Trade Map,” ZimTrade said in a note.
Nigeria’s gross domestic product, the largest in Africa, stood at US$441 billion at the end of 2021 and the country is located on the western coast of Africa and has a diverse geography, with climates ranging from arid to humid equatorial.