HARARE: Zimbabwe’s exports declined by 27.6 percent in March to $188.7 million as the southern African country’s trade deficit continues to widen.According to the country’s statistical agency – ZimStats – the decline was attributed to poor tobacco sales.
Tobacco valued at $10,8m was exported down from $115,2m recorded in February.The balance of trade could never be in favour of Zimbabwe — we shall always have a deficit because we are smaller
Maize, rice, wheat, crude oil and cane topped the list of imports while exports included tobacco, minerals, cotton, wood products and cigarettes.
ZimStats said for the three months to March 2015, total exports were valued at $716, 6 million against imports worth $1, 6 billion.
This resulted in a cumulative $853,6m trade deficit for the first quarter.
ZimStats said in the same comparable period in 2014 the country’s trade deficit was $839,4m.
South Africa remains Zimbabwe’s largest trading partner with total trade between the two countries for March 2015 valued at $332,7 million.
South African imports were valued at $114,3 million while exports to Zimbabwe were at $218 million.
President Robert Mugabe recently said Zimbabwe “will never” balance its trade with South Africa due to geographical and demographic differences between the two economies.
“South Africa is more developed than Zimbabwe and is far larger than Zimbabwe.
“The balance of trade could never be in favour of Zimbabwe — we shall always have a deficit because we are smaller,” Mugabe said.
Mozambique imported Zimbabwean goods and services valued at $26,1million, United Arab Emirates ($19 million), Israel ($9, 4 million) and Zambia at $9, 1 million.
The release of the trade figures came at time the International Monetary Fund projected that Zimbabwe’s economy would slump further this year due to continued decline in global commodity prices, fiscal challenges, and possible difficulties in policy implementation.
Zimbabwe’s balance of trade has remained in negative territory in the last few years fuelled by economic decline that has hit on productivity while promoting imports.
In 2014, the country recorded a trade deficit of $3, 3 billion with the Reserve Bank of Zimbabwe citing in part the retreat in international commodity prices and lack of competitiveness.
