Zimbabwe has persistently experienced monthly trade deficits since the beginning of the year as a result of slow recovery of the country’s exports.
A recent Zimtrade monthly report noted the monthly trade deficit stood at $195,8 million in January and peaked to $844,5 million in August before declining to $511,4 million in September.
The trade promotion body said exports over the period January to September 2011 amounted to $3,1 billion, which compares unfavourably with imports of $6,2 billion over the same period, reflecting a continued absorption of substantial imports by the country.
Trade deficit of $3,1 billion was realised over the period.
In comparison to last year, the country’s trade deficit grew by 200% in the first nine months of 2011.
“The widening trade deficit in August is attributed to increased imports of fertilisers ahead of the farming season,” said Zimtrade in a report.
The country’s major imports from the world over during the period under review were fertilisers constituting 18,5% of the import bill, followed by petroleum products with 13,7%, motor vehicles 12%, phone sets 5,3%, wheat 1,8%, sunflower seed 1,5%, maize 1,2% and pharmaceuticals 1,2%.
On the other hand, major export products were unprocessed tobacco constituting 13,5% of the export proceeds, followed by nickel with 13,1%, gold 12,6%, diamonds 7,1%, cotton 6,6%, ferro-alloys 3,9%, platinum 2,9% and sugar 2%.
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The exports were dominated by minerals or mineral ores and unprocessed products.
Zimtrade said the country’s exports were growing at a slower pace due to low levels of capacity utilisation in the manufacturing sector, which, according to the Confederation of Zimbabwe Industries’ manufacturing sector survey for 2011, contributed 27% to export earnings last year.
Most companies in the sector are producing for the domestic market.
According to the survey, exporting companies highlighted that export levels remained depressed due to challenges related to lack of working capital and unavailability of raw materials.
