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Oliver Kazunga-Senior Business Reporter

GOLD continues to dominate as Zimbabwe’s single biggest export commodity after the yellow metal accounted for 30,1 percent of the total value of goods exported by the country in April this year.

The mineral is expected to generate at least US$4 billion by next year, in line with the Government’s vision of growing the mining sector to a US$12 billion industry by 2023.

Deliveries to Fidelity Printers and Refiners, the country’s sole authorised buyer of the yellow metal, jumped 55,5 percent in 2021 to 29,6 tonnes from 19 tonnes in the same period in 2020.

The central bank said earlier this year gold deliveries would surpass the 29,6 tonnes recorded by Fidelity, when the component from platinum group metals is finally included in the reported tally.

National production has been growing ever since authorities scrapped taxes on small miners, who account for more than half of total tonnage, while timeous payment for deliveries at global prices has also positively impacted output.

Latest data on external trade released by the Zimbabwe National Statistics Agency (Zimstat) for the month of April 2022, shows that the country’s main exports were semi manufactured gold.

Semi-manufactured gold excludes gold bullion; a recognised weight and fineness of gold that can be purchased for the current price plus the small cost of refining, fabricating and shipping it. 

“In order to strengthen the country’s export earning capacity, it is necessary to look closely at export drivers.

“Data for April 2022 shows that Zimbabwe’s main exports were semi manufactured gold (30,1 percent), nickel mattes including platinum group of minerals (PGMs) (22,8 percent), nickel ores and concentrates (14,7 percent), tobacco (11,5 percent), industrial diamonds (5 percent), and ferro-chromium (4,7 percent),” said Zimstat in the report.

It said the contribution of platinum unwrought or in powder form was 2,4 percent while that of coke and semi-coke was 1,4 percent.

The agency said during the month under review, Zimbabwe exported 2 963 kilogrammes of semi manufactured gold valued at US$176,9 million compared to 2 200kg valued at US$135,5 million in March 2022.

“In the same month of April 2022, the country exported 1 150,1 tonnes of nickel mattes valued at US$133,9 million, compared to 1 009,5 tonnes valued at US$110,2 million in March 2022.

“Besides the major minerals usually exported, Zimbabwe also exported 103 kilogrammes of industrial diamonds valued at US$29,2 million in April 2022, compared to 148kg valued at US$45,2 million in March, 2021.”

In April, Zimbabwe’s major imports remained mineral fuels and mineral oil products which stood at 22,1 percent compared to 17,1 percent in March 2022.

“This was followed by machinery and equipment at 13,1 percent in April 2022. Other imports in April 2022 included vehicles (8,3 percent), electrical machinery (4,9 percent), plastics (4,5 percent), cereals mostly rice (3,6 percent), animal and vegetable oils and fats (2,8 percent), pharmaceuticals (2,7 percent), paper and paper products (1,9 percent), and fertilizers (1,6 percent).” Notably, the agency said major imports in Zimbabwe were aggregated to reach 91,5 percent in April 2022.

Cereal imports including maize increased from 1,7 percent in March 2022 to 3,6 percent in April 2022. Rice, which makes the bulk of cereal imports constituted 1,3 percent in March 2022 compared to 2,5 percent in April, 2022.

Nickel mattes and concentrates undergo further processing before re-exporting.

In the month under review, South Africa remained Zimbabwe’s major trading partner with exports to South Africa at 40,6 percent compared to 42,9 percent the previous month.

Exports to the United Arab Emirates constituted 34,1 percent in April 2022 compared to 31,3 percent in March 2022.

Trade relations between Zimbabwe and the UAE have blossomed in recent years after the two countries established consular services in each other’s territories while the former’s participation at the six months long Expo 2020 Dubai is expected to strengthen the ties.

Value of exports to China increased to 9,9 percent in April 2022 from 5,9 percent in March the same year.

“Exports to Mozambique constituted 4,3 percent in April 2022 being a decline from 7,1 percent in March 2022.

“The proportion of exports to Belgium was 1,2 percent in April 2022 compared to 2,1 percent in March, 2022.

“The proportion of imports from South Africa was 43,8 percent in April 2022 compared to 42 percent in March 2022.”

Furthermore, the proportion of the value of imports from Singapore increased to 16,4 percent in April 2022, compared to 12,6 percent in March 2022.

Imports from China increased to 13,6 percent in April 2022 from 11,6 percent in March 2022.

Other imports in 2022 came from Mozambique (2,8 percent), Mauritius (2,6 percent), India (2,4 percent), (United Emirates (1,4 percent), Zambia (2,6 percent), United Kingdom (1,2 percent) and United States (0,7 percent).

Meanwhile, the country’s trade deficit is expected to expand further following last month’s announcement by the Government to open floodgates for the importation of basic commodities through the suspension of duty on a cluster of basic commodities.

The basic commodities list largely comprises food and non-food items such as cooking oil, mealie meal, salt, and bath and laundry soap.

The Government has attributed the duty suspension to a spate of substantial price increases in the retail market and the move is designed to protect consumers amid rising prices of goods.

As a result of the price increases, Zimbabwe’s attendant rising inflation has been on an upward trajectory, recording 13 1,7 percent last month from the April rate of 96,4 percent.