South Africa absorbs 77,8 percent of Zimbabwe’s exports

Source: South Africa absorbs 77,8 percent of Zimbabwe’s exports | The Financial Gazette July 12, 2016

SOUTH Africa absorbed 77,8 percent of Zimbabwe’s major exports during the first quarter of the year official figures have revealed.

The country’s major exports to South Africa were nickel, platinum group of metals and gold.

According to figures from the Reserve Bank of Zimbabwe (RBZ), South Africa maintained its status as Zimbabwe’s major trading partner with 35,8 percent of the Zimbabwe’s imports coming from its southern neighbours.

Total trade during the first quarter of 2016 amounted to US$1,95 billion, compared to US$2,21 billion during the first quarter of last year.

On a quarterly basis, total trade also declined from US$2,31 billion in the fourth quarter of 2015, to US$1,95 billion in the first quarter of 2016.

Over the period January to March 2016, exports declined by 12,6 percent from US$716,2 billion realised in 2015 to US$626 billion in 2016.

Total imports for the first quarter of 2016 amounted to US$1,32 billion, representing an 11,1 percent decline from US$1,49 billion realised over the comparative period in 2015.

Similarly, imports for the first quarter of 2016 were 8,3 percent lower, compared to the fourth quarter of 2015.

The country’s major imports during the period January to March 2016, mainly comprised of fuels (diesel and petrol), cereals (maize, rice, and wheat), soya beans and medicines.

“The country’s major export markets consist of South Africa, Mozambique, United Arab Emirates, Zambia, Belgium and Botswana. Notably, South Africa absorbed 77,8 percent of the country’s total merchandise exports during the first quarter of 2016, followed by Mozambique 7,9 percent, United Arabs Emirates 4,8 percent; Zambia 4,5 percent and Belgium 2,3 percent,” said RBZ in its first quarter report.

Exports to the other destinations in the world constituted 2,7 percent of the total exports in the first quarter of 2016.

“During the first quarter of 2016, the country sourced its imports mainly from South Africa – 35,8 percent, Singapore – 24,7 percent; China -9,5 percent; Zambia -5 percent; Mozambique -3,5 percent; and Japan – 3,5 percent,” RBZ said.

RBZ said Zimbabwe continued to source most of its imports from a few markets, as about 90 percent of the imports were acquired from twelve countries during the first quarter of 2016.

The first quarter figures show a deterioration in the trade balance by 20,5 percent, from a deficit of US$583 million registered during the fourth quarter of 2015, to a deficit of US$702,3 million in the first quarter of 2016,

The country’s trade account continued to register sustained deficits, which are reflective of the disproportionate absorption of imports of finished goods, on the back of domestic supply-side constraints.

Zimbabwe’s export volumes and revenues were subdued on the back of low production, lack of competitiveness and the general downturn in international commodity prices.

On the back of persistent deficits registered in the trade account, performance in the current account will remain constrained in the outlook period, with adverse implications on the liquidity situation and economic growth in particular.