Zimbabwe’s trade deficit widens by 4.2pct

Prisca Tshuma
Staff Writer

ZIMBABWE’S trade deficit grew to US$207,6 million in September 2024, marking a 4,2 percent increase from August’s figure of US$199,1 million, according to the latest data from the Zimbabwe National Statistics Agency (Zimstat).

Both imports and exports declined in the month under review, widening the deficit.
A trade deficit occurs when a country’s imports exceed its exports, and in September, Zimbabwe’s imports totalled US$782,6 million, a 10,4 percent drop from August’s US$873,2 million. Exports also declined, falling by 14,7 percent to US$575 million from August’s US$674 million.

Despite these declines, the ongoing high demand for foreign currency highlights Zimbabwe’s active import market. Last week, the Reserve Bank of Zimbabwe injected US$32 million into the interbank foreign exchange market to support the local currency and meet fourth-quarter foreign currency needs.
“Traditionally, the last quarter of the year witnesses increased demand for foreign exchange to meet critical requirements for the summer agricultural season and for preparations for the start of the festive period,” the reserve bank noted.
The mining sector continued to dominate exports, contributing over 60 percent of the country’s total exports in September.
“Among the top 10 products exported in September 2024 were semi-manufactured gold, tobacco, partly or wholly stemmed/stripped, and nickel mattes, accounting for 40,2 percent, 19,3 percent, and 13 percent of the total value of US$575 million, respectively,” Zimstat reported.
On the import side, industrial supplies, machinery, and cereals were among the major goods brought into the country.
“Mineral fuels, mineral oils and products, machinery and mechanical appliances, vehicles, and cereals were among the top 10 imported products in September 2024,” the agency detailed.
These categories made up 20,7 percent, 14,6 percent, 8,2 percent, and 7,6 percent of the total import value of US$782,6 million, respectively.
Zimbabwe’s main export markets in September included the United Arab Emirates, South Africa, and China, which together accounted for around 81 percent of the total export value.
South Africa continued as Zimbabwe’s leading source of imports, constituting 36,8 percent of the total, followed by China, the Bahamas, Singapore, and the UAE. Combined, these countries contributed approximately 71 percent of Zimbabwe’s import value for the month.
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