Mishma Chakanyuka, Staff Writer 
ZIMBABWE’S trade deficit narrowed by 26,4 percent to US$69,6 million in October, as exports rose faster than imports, latest data from the Zimbabwe National Statistics Agency (ZimStat) shows.
The country’s exports increased by 22,7 percent to US$831,9 million during the period.
According to the Reserve Bank of Zimbabwe, the country’s average balance of trade between 1991 and 2023 was a deficit of US$205,55 million per month.
The most recent data shows that Zimbabwe’s monthly imports totalled US$901,5 million which was 16,7 percent, more than the September imports of US$772,7 million.
For decades, Zimbabwe’s exports have been dominated by primary commodities such as nickel ores and concentrates, nickel mattes, gold, tobacco, ferrochromium, platinum and diamonds. Top exports during the month were tobacco, platinum and gold, which accounted for 27,6 percent, 25,9 percent, and 21,9 percent of the total export value.
According to the Reserve Bank of Zimbabwe, the country’s average balance of trade between 1991 and 2023 was a deficit of US$205,55 million per month.
“The products constituted 6,9 percent, 14,8 percent, 9,8 percent and 8,1 percent of the total import value of US$901,5 million, respectively,” ZimStat said.
The country’s major export destinations in October 2023 were China 38,4 percent, the United Arab Emirates 22,8 percent, and South Africa 16,3 percent. The three countries accounted for around 77 percent of the exports. “For September 2023, the total value of exports was US$678,1 million of which more than half was to the United Arab Emirates at 30 percent and China at 26,3 percent,” ZimStat said.
In his 2023 national budget, Finance and Investment Promotion minister, Mthuli Ncube predicted that the country’s external sector would remain relatively strong, with a surplus current account at a much lower level of US$85,2 million.
He, however, said the external sector’s performance may be dampened by softening global commodity prices and moderating global economic growth, against rising domestic imports.
“In 2023, merchandise exports are projected to marginally decrease by 2,4 percent, to US$7,2 billion on account of anticipated lower mineral export receipts, as the global economy slows down and the fall in commodity prices,” Ncube said.
Ncube also highlighted that merchandise imports are projected to increase further to US$8,4 billion in 2023, in line with expected domestic economic growth.
“Enhanced import substitution through local production of products such as wheat and soya beans are envisaged to dampen imports,” he added.
In October 2023, South Africa remained the major source of Zimbabwe’s imports, accounting for 34,7 percent of the total import value followed by the Russian Federation at 15,2 percent, China at 11,9 percent, and Bahrain at 6,9 percent.
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