TRADE between Zimbabwe and its second largest export destination, Mozambique is set to improve after business leaders from the neighboring country expressed interest in local mining, engineering and fast food consumer goods sectors, the country’s trade facilitation body has said.
Zimbabwe enjoys a trade surplus with Mozambique- one of the fastest growing economies in Sub-Saharan Africa- currently growing at an average annual real gross domestic product (GDP) growth rate of 8%. Official figures show that exports to Mozambique, at US$577 million in 2014 accounted for 18,8% of the country’s total exports against imports of US$148 million.
ZimTrade, the country’s trade facilitation body said a business delegation from Mozambique, comprising 12 companies, participated in an Inward Buyer Mission from late last year.
“The delegation will comprise buyers interested in sourcing products from Zimbabwean suppliers in the following sectors: mining consumables; protective clothing; building and construction; automotive; engineering products and services; fast moving consumer goods such as dairy products, fruit and vegetables, among others,” ZimTrade said in a statement, “The Mission is an integral part of ZimTrade’s efforts to continue to grow trade between Zimbabwe and Mozambique. Since 2012, total trade between the two countries has increased by 64% from US$443 million to US$725 million in 2014.”
Experts say Mozambique is a lucrative market whose logistical proximity presents tangible advantages for local companies. Zimbabwe and Mozambique are both members of the Southern African Development Community (SADC) and qualifying products enjoy duty free entry into either country. Additionally, the two countries have an operational bilateral trade agreement, which also gives duty concessions to qualifying products.