MOZAMBIQUE has become Zimbabwe’s second largest regional trading partner after South Africa, absorbing 18% of the country’s exports in the first 10 months of 2015, information gathered from ZimTrade has shown.
BY MTHANDAZO NYONI
Zimbabwe and Mozambique are both members of Sadc and qualifying products enjoy duty-free entry into both countries.
In addition, the two countries have an operational bilateral trade agreement, which also gives duty-free concessions to qualifying products, ZimTrade said.
Zimbabwe exported goods and services such as mining equipment, agricultural produce, building and construction material, among others, with the country’s trade promotion body urging companies to fully utilise the trade agreements.
“According to ZimStat, Mozambique is Zimbabwe’s second largest regional trading partner, absorbing 18% of Zimbabwe’s exports for the first 10 months of 2015,” ZimTrade said.
Zimstat data showed that in the first nine months to October, Zimbabwe exported about $365 million worth of goods to Mozambique.
Trade between the two countries grew to $725m in 2014 as compared to $570m in 2013.
Zimbabwe’s exports to Mozambique increased to $577m last year from $369m in 2013.
Imports from Mozambique declined to $148m last year from $200m in 2013.
Mozambique is among the top 10 fastest growing economies in sub-Saharan Africa with average annual real GDP growth of 8%. In 2014, Mozambique had a population of 26 million with a GDP of $16 billion.
ZimTrade said business delegates from Mozambique, who participated in an inward buyer mission recently, expressed satisfaction with the quality of Zimbabwean manufactured products.
Speaking at the opening of the four-day mission, the Head of the Investment Promotion Centre in Tete, Leornado Junior, urged Zimbabwean companies to tap into opportunities in sectors such as agriculture and agro processing, mining, building and construction, logistics as well as tourism.
The buyers visited factories in Harare, Kwekwe and Bulawayo to better understand the production processes as well as appreciate the quality of the products.
“The buyers expressed interest in FMCG [fast moving consumer goods] as well as horticultural seeds, herbicides, fertilisers, engineering equipment, professional services and building materials. Business worth over $500 000 is expected to be generated,” ZimTrade said.