The need to increase Zimbabwe’s exports will come under the spotlight when government, local exporters, industry players, academia, researchers and sector experts meet at the ZimTrade Annual Exporters’ Conference from 17-18 October in Bulawayo. The conference, taking place under the theme, “Rethink, Reform, Export!” is set to discuss best approaches aimed at addressing challenges faced by local businesses. The conference will also bring together local exporters and buyers from other countries to share ideas that will boost exports of local industries. From issues raised during the Annual Exporter’s Conference, key outcomes that are industry-driven will be produced. These resolutions will inform engagement activities that ZimTrade will use to facilitate on improving Zimbabwe’s export capacity and the ease of doing export business.In line with the devolution drive by the Government of Zimbabwe, this is the first time the conference is being held out of Harare and given the status that Bulawayo has as an industrial hub and the declaration of the city as a Special Economic Zone.

As in the previous years, the Conference will be followed by an Awards Gala Dinner on 17 October. The awards gala is an event where Zimbabwe’s leading exporters in a range of categories will be recognized for their efforts and successes in reaching markets beyond our borders. The Conference aims to foster dialogue and linkages between delegates and business leaders from different sectors will come together to come up with solutions that will improve Zimbabwe’s trade balance. Delegates will also benefit from engagements with several regional and international speakers who have been invited to share their knowledge and experiences. Among the international speakers is Dr. Ashraf Mahate, a UAE-based trade and export market development expert. The information shared by the speakers will inform decisions on how Zimbabwean products can successfully penetrate and compete on the international markets as well as best approaches to addressing current production challenges. To expose local exporters to opportunities in international markets,

Continued on page 2

ZimTrade Annual Exporters’ Conference to tackle challenges, emerging issues

@ZimTradeAlerts

info@zimtrade.co.zw

www.tradezimbabwe.com

ContentsMutare farmers trained on product certification 2

Exporters urged to insure their businesses against export risk 3

The global market presents opportunities for local businesses 4

Zimbabwean products charm UK 6

Mutare farmers trained on product certification

Participants who completed the Marketing and Branding for International Competitiveness (MBIC) training programme in Bulawayo have been urged to cover their businesses against risks associated with exporting. The training programme was attended by companies from clothing and textile, leather, pharmaceutical and engineering sectors in which 19 exporters were awarded certificates after finishing the training programme. The objective of the training programme aim was to enhance export marketing skills of participants. The programme covers key aspects of acquainting exporters on exporting knowledge on which some

of the modules covered focused on reason why exporters must insure their export businesses. Export credit insurance protects a seller from the risk of nonpayment by a foreign buyer. The insurance usually covers commercial risks such as buyer insolvency, bankruptcy, or defaulting payment. There are different types of insurance covers which are offered to exporters by insurance organisations in Zimbabwe. Pre-Shipment Cover provides protection from the time the order is received by the exporter until the time it is shipped from Zimbabwe. Post Shipment Cover protects the exporter against overseas credit

risks from the time the shipment is made until receipt of payment from the importer. On the other hand, Consignment Stock Cover covers losses arising from war and confiscation of goods while in transit or goods held in stock in a foreign country and Medium and Long Term Insurance covers the export of capital goods or services on credit terms of more than two years against both political and commercial risks. It is advisable for exporters to always have an up to date insurance policy to reduce the cost of losing goods and delays that might occur when applying for insurance when the goods are already at a possibility of risk.

Exporters urged to insure their businesses against export risk

A capacity building and peer review workshop on stakeholder-led ‘Good Practice’ for Seven Horticultural Value Chains Compliance for Export Markets was held at Mutare Diocese Catholic Training Centre from the 16-20 September 2019. This ZimTrade facilitated training is a component of the European Union-funded ACP-EU TradeComm II Programme, which is targeted at strengthening the capacity and competitiveness of small-scale horticulture farmers for production of niche export products. Following a survey undertaken by the TradeComm experts

in Rusape, Juliusdale, Nyamaropa, Honde Valley, Chipinge in May this year, a baseline study was developed for the production and exporting of sweet potatoes, floriculture, paprika, bananas, avocadoes, macadamia and pineapples. The training thus exposed farmers to standards that are required by the EU within identified seven value chains. Farmers were capacitated on mainstreaming public and private sector standards, developing good practices within the value chains and fostering competitiveness in the system.

The training also provided an opportunity for farmers and experts to share experiences and knowledge on how other peers adopt and adapt to changing international standards along with challenges faced in the processes. Representatives from key government standards agencies assisted in carving the most appropriate and sustainable systems to implement in order to achieve the best output and inevitably attain best prices from the market.

Exporters call for improved ease of doing business

Continued on page 4

the Exporters’ Conference will be followed by a Buyer-Seller Meeting scheduled for 18 October. Export opportunities and entry requirements from different markets of the world will be presented by buyers from Botswana, Democratic Republic of Congo (DRC), Namibia, Mozambique, United Arab Emirates (UAE) and United Kingdom.

Continued from page 1

September 2019

2 3

Exporters in Matabeleland North have expressed need for further engagements with gorvernment departnments. This came out of a ZimTrade visit to various companies in Victoria Falls, Binga and Lupane where companies raised a number of areas affecting their businesses. Following the Rapid Results Initiative (RRI) of 2016, the government has been implementing an array of measures to facilitate an enabling environemt for export growth. These include removal of export permits on non-strategic products, reduction of costs in cancellation of bills of entry and de-centralisation of the issuance of forestry permits. The government has also been working on reduction of time taken to register under trade agreements and online lodging of export documentation (CD1 forms) for processing. Although recording successes, exporters in Matebeleland North said more statutory reforms still

need to be implemented to improve Zimbabwe’s global competitiveness ranking. Companies in the exotic leather sector highlighted the need for review of cost of permits required for exotic leather skins and value-added products. Zimbabwe is signatory to the Convention on International Trade in Endangered Species, (CITES) and as such, there are requirements to be fulfilled by companies trading in skins of animals such as crocodiles and elephants. However, the cost of issuing the permits remains high for some businesses. Exporters in Matebeleland also indicated the need for coordination amongst government departments to avoid duplication of some levy charged by different departments. For example, the Zimbabwe Parks and Wildlife Management Authority and Rural District Councils both charge companies the breeders’ license.

The exporters applauded the support they are receiving from ZimTrade in facilitating engagements wth the government and related agencies. ZimTrade continues to engage the various authorities and is continuosly updating the list of impediments to be addressed under RRI. As part of government-private sector engagement activities by ZimTrade, a meeting with the Ministry of Finance and Economic Development and local businesses in Bulawayo has been set for end of October in Bulawayo. Submissions have also been made to the Parliament of Zimbabwe and the upcoming Annual Exporters’ Conference to be held in Bulawayo on 17 October will provide a platform for policymakers and exporters to engage and agree on implementable resolutions key to exports’ growth.

Without doubt, Zimbabwe is home to some of the best quality products that are recognised around the world. Products such as Mazoe Orange Crush, Tanganda Tea and many others have carved a mark in the global export market. From formal exporting channels to “suitcase” mode of exporting – where an individual carries a few items as they travel to bring family and friends – locally produced products have been used around the world, with feedback that Zimbabwean products are competitive.

In countries in the region such as Zambia and Botswana, to further nations such as England and the Unites States of America, a sizable number of buyers can relate to having procured Zimbabwean products. The comment is always the same, Zimbabwean products are of good quality and can compete with products from any country. However, researches done by ZimTrade, the national trade development and promotion organisation, have indicated that in most cases, local businesses are not well capacitated, leaving

ready customers wondering what happened to the good Zimbabwean product they had gotten used. Thus, it is important for local exporters to understand market requirements and make the necessary arrangements to ensure that they meet demand and have enough distribution reserve in order to increase brand visibility. Before engaging with any market, it is important for local companies to understand leverage points for successful market penetration.

The global market presents opportunities for local businesses

Consumers in United Arab Emirates (UAE) have a high marginal propensity to spend and to consume. They are high spenders and the consumption of fruits, vegetables and meat products is growing which therefore present opportunities for Zimbabwean products. UAE is largely a desert area and this offers opportunities for Zimbabwe’s horticultural produce. Produce that performs well in the UAE market include fresh vegetables such as mange tout and sugar snap peas, green beans, fresh chillies, peppers, fresh flowers, fresh avocadoes, fresh or dried oranges, lemons fresh passion fruit, fresh mushroom and fresh peaches. There is also market for canned fruit and fruit-based products, cabbages, potatoes, citrus and leaf and stem vegetables Exporters can also take advantage

of the Dubai 2020 World Expo scheduled for October next year. The promotional event will provide an opportunity for local exporters to market their products and interact with potential buyers in UAE.

Botswana is largely an open market economy, with the business environment being highly facilitative of trade and investment for both local and foreign players. The country is highly dependent on imports for most of its key requirements such as beverages, cereals, fresh produce and processed foods, and these provide a market for Zimbabwean products. Botswana presents a ready market for Fast-Moving Consumer Goods such dairy products, confectionaries, condiments and cordials.

Botswana also has a vibrant construction industry which offers opportunities for building, construction supplies and services.Local companies can further tap into Botswana’s beef to leather value chain where they can process raw hides and skins into high quality leather. As Botswana has no tanneries, finished leather has a high demand in the leather processing industry and Zimbabwe’s eight tanneries can produce enough products to satisfy demand. There is also market for leather products such as handbags, belts and footwear.

Pharmaceuticals and medical supplies represent some of the major export opportunities for local businesses to the Democratic Republic of Congo (DRC).

The DRC market is already familiar with Zimbabwean brands A survey conducted by ZimTrade revealed that several consumers in the Katanga area indicated a general preference for Zimbabwean products. Local products being imported include fresh produce, yoghurt, cheese, chicken, polony, beef as well as tinned foods. In the services sector, DRC offers opportunities in the insurance industry which is still in the infantry stage. Currently, there are only three players operating in the country and the industry has recently been regulated. The information technology and banking are other service industries that local players can consider. Opportunities in the banking sector include automation technology and electronic banking facilities; investment and asset management; and accounting and tax consultancy. Further opportunities in DRC are in the agriculture chemicals and implements products as the country has, in the past few years, been experiencing an annual shortage of fertilisers and other agro-chemicals.

The Namibian economy offers opportunities for Zimbabwe to supply products and services in the mining, tourism, fishing, manufacturing and agriculture sectors. Zimbabwean firms can export services such as engineering, surveying, instrumentation, transport, plant maintenance,

environmental management and artisanal services to the Namibian mining sector. The tourism industry in Namibia is vibrant and offers opportunity for Zimbabwean players in the hospitality service industry. Other services that have a market in Namibia are in areas like the medical field, teaching, hospitality and catering, motor mechanics and skilled agriculture workers. Another key economy sector for Namibia is the fishing industry, which is concentrated in Swakopmund, Walvis Bay and Luderitz. Unique opportunities for Zimbabwean exporters are in provision of supplies for the fishery value chain With regards to agriculture, the main farming products are beef, mutton and dairy, millet and maize, and these creates opportunities for exporters to supply farming inputs, equipment and medicines. In addition, Zimbabwe’s favourable climatic conditions presents opportunities for local enterprises to export fresh produce, which include both fresh vegetables and fruits.

The exit of the United Kingdom (UK) from the Europen Union (EU) presents huge potential for Zimbabwe to grow its trade relations with the UK. Over the years, the United Kingdom has been one of the major source market and export destination for Zimbabwean products in the European Union. Local products with potential export growth in the UK largely

September 2019

4 5

consist in the organic food market with products like include dried fruits and vegetables, fresh fruits and vegetables, among others. Organic products have a premium price of about 30 percent more than other products and could prove profitable to many local producers as this is also more than a billion-dollar business in the UK.

Zimbabwean manufacturers and distributors have a unique opportunity, anchored primarily on advantages related to logistics operations, to increase exports into neighboring countries, which in turn creates supply links to more countries. A recent market survey conducted by ZimTrade in May 2019 revealed that Zambia offers high potential for Zimbabwean products and services in the Fast-Moving Consumer Goods (FMCG) and mining supply sectors. There is an increasing demand for FMCG goods that include processed foods and beverages, personal care products and toiletries. The Zambian economy also offers potential in the mining sector for supplies and services. Mines with active projects for exploration import materials such as structural steel and cement as well as materials used for processes that include aluminium powder, ammonia, anodes and cathode, caustic soda, coal and cobalt sulphate.Penetrating Zambian mining sector offers further opportunities in down-stream activities that the mines support.

Botswana

United Arab Emirates

Democratic Republic of Congo

Namibia

United Kingdom

Zambia

Zimbabwean products charm UK ZimTrade, the national trade development and promotion organisation, recently completed an outward seller mission to the United Kingdom which was aimed at expanding trade between the two countries and complement Zimbabwe’s re-engagement efforts. A total of 11 local companies took part in the outward seller mission facilitated by ZimTrade and United Kingdom (UK) Department for International Trade. As part of activities to re-ignite UK’s appetite for Zimbabwean products, trade and investment seminars as well as business-to-business meetings were held in London and Birmingham. The seminars and meetings provided an opportunity for local companies to interact with buyers in the UK and establish linkages that will make it easy for local products to penetrate the UK and European markets. Further to this, ZimTrade facilitated for Zimbabwean companies in the processed foods and horticulture sectors to exhibit their products at the Speciality and Fine Food Fair that was held at Olympia in London from 1-3 September 2019.Buyers from UK expressed interest to buy products from Zimbabwe, with horticultural produce attracting buyers who visited Zimbabwe’s companies at the exhibition. The growing interest in Zimbabwean products is expected to unlock export opportunities for value-added products in the UK and the rest of Europe. Zimbabwean products are best known for their quality and local products such as Mazoe and Tanganda Tea have made a mark in the UK market. The ZimTrade-facilitated outward seller mission provided a platform

for Zimbabwean companies to assess their readiness to do business with Britain ahead of ‘Brexit’, which is expected to open the UK market to non-European Union (EU) countries. Following a referendum held in June 2016, Britain is in the process of leaving the EU and seeking to expand business opportunities with the rest of the world. Previously, most imports consumed in Britain were coming from the EU and a successful Brexit will open new trade and investment opportunities for Zimbabwe. As a result of the Mission, participating companies are in the process of negotiating distributor arrangements with UK companies whilst some companies have identified business partners who will provide machinery for value-adding their products to meet requirements of their target market. There is scope to increase Zimbabwe’s exports to the UK. Currently, Zimbabwe and the

United Kingdom share a trade agreement under the Interim Economic Partnership Agreement which allows for duty-free, quota free market access to UK and other European Union Members. United Kingdom has been one of the major source market and export destination for Zimbabwean products in the European Union. In 2018 the UK was the third best export market taking 21 percent of the product destined for the EU28. As a source market the UK was the biggest supplier, providing 22 percent of the total exports by EU28 to Zimbabwe Whilst exports are increasing, of concern is the fact that the structure of trade is skewed in favour of commodities such as diamonds which constituted 72 percent of total exports in 2018. There is, therefore, need to support the export of value-added goods and services that have great potential in the UK market.

Angola is a Southern African country with a population of about 30.8 million (2018) according to World Bank. The country is bordered by the Atlantic Ocean in west, Namibia in south, the Democratic Republic of the Congo in north, and Zambia. According to the World Bank, the country boasts of a Gross Domestic Product (GDP) of US$105.8 billion and GDP per capita of US$3,432. After a 40-year-long civil war Angola is now one of the world’s fastest-growing economies, AFDB projected Angola to have a GDP growth of 1.2 percent in 2019 and 3.2 percent in 2020. Oil accounts for most of Angola’s GDP. The country is also rich in diamonds, phosphate, and iron. Despite the historical ties between Zimbabwe and Angola, trade between the two countries has remained relatively low. There is however potential for Zimbabwean businesses to tap into the Angola’s import bill, which was US$16 billion in 2018 according to Trade Map. Products with potential for local exporters include electrical machinery, equipment, meat, vehicles, cereals, pharmaceutical products, animal and vegetable fats, iron and steel, dairy produce, eggs and honey. Zimbabwean companies have further potential to export fish, malt, oranges fresh or dried, beans, sugar, ploughs for use in agriculture, seeds of forage plants, doors, window and their frames, wooden bedroom furniture and starter batteries. To identify further opportunities and market entry strategies, ZimTrade will conduct a market survey in Southern Angola in November 201. The survey will aid Zimbabwean companies with verified information specifically on the Southern Angola with regards to the most effective and efficient ways of developing business, distribution channels, payment systems and customs procedures. The research will focus on processed foods, fresh produce and services.

Zimbabwe and Angola are both members of the SADC Protocol. The Protocol is an agreement between SADC Member States to reduce customs duties and other barriers to trade on products from each other.

The mangetout is a flat-podded variety of pea, eaten whole (hence the French name mangetout, which means eat everything). The peas within the pods are small, crisp and sweet, and can be served raw or lightly steamed, boiled or stir-fried. Zimbabwe’s climatic conditions are favourable for growing this variety of peas, which guarantees sustainable production. Mange tout are rich in good quality protein, which makes them the ideal choice of meat substitute for the vegetarian. The peas are also a good source of Vitamin A and Vitamin C and a good source of fibre. According to Trademap, world imports of peas stood at US$464 million in 2018 and of that amount Zimbabwe exported US$7.8 million. Major export destinantion of Zimbabwean peas in 2018 where Netherlands (US$1.8 million), United Kingdom (US$ 1.6 million), France (US$ 0.2 million), Ireland (US$ 0.1 million) and South Africa (US$ 0.1 million). Major world importers of mangetout peas in 2018 were United States of America (US$80 million), Netherlands (US$ 70 million), United Kingdom (US$64 million), Canada (US$59 million) and France (US$19 million). Local producers are encouraged to pursue the European market under interim Economic Partnership Agreement (iEPA) as there is rising demand for vegan, gluten-free and natural foods in the European market. iEPA allows qualifying products such as peas from developing countries which are members to be sold to European markets duty free and quota free if they have requisite certification.

Market Focus: Angola

Product Focus: Mangetout Peas

September 2019

6 7

12

August, 2019

GetIn Touch

AFRICA INTERNATIONAL

188 Sam Nujoma StreetAvondaleP. O. Box 2738Harare, Zimbabwe

Tel: +263 (4) 369330-41

48 Josiah Tongogara StreetP. O. Box 3090Bulawayo, Zimbabwe

Tel: +263 (9) 66151/62378ZimTradeAlerts

ZimTrade Zimbabwe

www.tradezimbabwe.com

info@zimtrade.co.zw

HEAD OFFICE REGIONAL OFFICE ONLINE

CHINA

China International Fair for Investment & Trade 8-11 September 2019Website: www.chinafair.org.cn

INDIA

India International Cooperative Trade Fair (IICTF)11 - 13 October 2019Tel: +91 11 2696 2478Email: iictf@ncdc.inWebsite: www.ictf.co.in

BOTSWANA

Electra Mining Africa10-12 September 2019Tel: +267 397 5555Website: www.electramining.co.bw

ETHIOPIA

Pan African Trade & Investment Expo19 – 22 March 2020Email: exhibit@panafricanexpo.comWebsite: www.panafricanexpo.com

TANZANIA

Origin Africa28 - 30 October 2019Dar es SalaamEmail: nancy@originafrica.orgWebsite: www.originafrica.org