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Michael Tome

Business Reporter

NATIONAL trade development and promotion body, ZimTrade, has called on exporting local companies to take advantage of lower export costs and the proximity of Tete province in Mozambique to Zimbabwe to supply various goods and services.

Tete province is replete with market opportunities, particularly for local firms in the production of mining and agriculture sector accessories.

The province is located 146 kilometers from the Nyamapanda Border Post and Zimbabwean firms can benefit immensely from its 2,6 million population.

Several large-scale mining companies, including the world’s biggest coal mines, operate in Tete.

The mining environment on its own presents worthwhile opportunities for local companies that intend to supply mining accessories such as personal protective equipment to the area.

Local companies also stand to benefit from the province’s booming agriculture sector, which is mainly driven by the high concentration of smallholder farmers who make up over 90 percent of corporates in Tete.

Farming has been thriving driven by the Mozambican government programmes aimed at supporting commercial farming in the area.

According to ZimTrade this presents opportunities for local companies to ride on the demand for agriculture inputs and implements in the market.

Mozambique has lately been growing to become the fourth largest export market and a significant trading partner to Zimbabwe.

Statistics show that Zimbabwe’s trade with Mozambique recorded an 80,7 percent growth to US$106 million between January and April this year compared to the US$58 million realised in the same period in 2022.

“Zimbabwean companies have the potential to supply products like seeds, chemicals, treated poles for fencing, tractor-drawn implements, hand tools, chemicals, and fertilisers among others.

“There is room to further grow exports to Mozambique, riding on linkages that were created at the recent outward seller mission to Tete province, more opportunities for trade in the province lie in the mining sector and fast-moving consumer goods (FMCGs),” said ZimTrade in its monthly communique.

According to ZimTrade economic cooperation between the two countries is projected to continue on a growth path following President Filipe Nyusi’s state visit to Zimbabwe in May 2023, which saw the signing of tripartite Memoranda of Understanding whose efforts are directed at improving trade between the neighboring nations.

Zimbabwe and Mozambique have a significant trade relationship, with bilateral trade ties largely driven by their geographical proximity and historical ties.

The cooperation with Mozambique is in line with Zimbabwe’s foreign policy thrust over the past five years which seeks to forge partnerships, attracting investment from all frontiers under the friend to all, enemy-to-none, banner.

Mozambique is currently Zimbabwe’s fourth largest global export market, after South Africa, United Arab Emirates, and China, and is also the fifth largest source market after South Africa, China, Singapore, and Mauritius.

According to the Observatory of Economic Complexity (OEC) Zimbabwe in 2021, exported products worth US$498 million to Mozambique while the country imported merchandise worth US$266 million from the Eastern neighbor.

Zimbabwe’s main exports to Mozambique were ferroalloys at US$250 million, nickel ore worth US$59, 3 million, and raw tobacco (US$31.3 million).

The country’s exports also include food and beverages, live animals, agricultural products, construction materials, clothing and textiles, manufactured goods, machinery, and transport equipment.

From Mozambique, Zimbabwe imported soybean oil valued at US$74,7 million, electricity (US$49,1 million) electricity, and US$27, 6 million worth of refined petroleum.

During the last 26 years, the exports of Zimbabwe to Mozambique have increased at an annualized rate of 9, 12 percent, from US$51.5 million in 1995 to US$498 million in 2021.