Zimbabwe's trade deficit decreased by 23,8 percent in May this year to US$151,1 million, according to the latest report from the Zimbabwe National Statistics Agency (ZimStat).
The statistics agency said in May, exports amounted to US$583 million while imports totalled US$734,1 million.
The country now depends on imports for some products it used to produce following the nearly two-decade economic crisis, since the turn of the century, which caused a plunge in production across sectors, hence the trade deficit. During the period, Zimbabwe's economy also took a battering from the impact of Western sanctions, following the country's land reform programme to accommodate the landless majority indigenous people, which blocked access to global funding to reboot productive sectors.
The Second Republic, since coming into power in November 2017, has been relentlessly working to localise several value chains to cut imports and pushing value addition and benefits to optimise exports.
"Zimbabwe's goods trade deficit for May 2024 was US$151,1 million, a 23,8 percent decrease from the April 2024 deficit of US$198,2 million.
"May 2024 exports amounted to US$583 million, an increase of 13,5 percent (US$69,5 million) from the April 2024 value of US$513,5 million.
"Imports for the month totalled US$734,1 million, which was 3,2 percent (US$22,5 million) more than the April 2024 imports of US$711,7 million," it said.
A trade deficit occurs when a country's value of imports is greater than that of exports in a given period.
Among the top 10 products exported in May 2024 were semi-manufactured gold, nickel mattes, and nickel ores and concentrates, which accounted for 42,5 percent, 12,6 percent and 7 percent of the total value of US$583 million, respectively.
"Mineral fuels and mineral oil products, machinery and mechanical appliances, cereals and vehicles were among the top ten imported products in May 2024.
"Among the country's major export destinations in May 2024 were the United Arab Emirates (43,9 percent), South Africa (28,1 percent), and Mozambique (9,2 percent)," said ZimStat.
The three countries, it said, accounted for around 81 percent of the total export value of US$583 million.
ZimStat said major source countries for imports were South Africa (41,4 percent), China (10,3 percent), Bahamas (7,7 percent) and Bahrain (7,4 percent).
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The countries accounted for around 67 percent of the total import value.
Meanwhile, Industry and Commerce Minister Mangaliso Ndhlovu, while officially opening the Zimbabwe National Chamber of Commerce annual congress in Victoria Falls last week, urged the business community to embrace the principles of sustainable industrialisation, taking advantage of its natural resource endowment and the industrious human capital base.
"Our rich natural resources, industrious people, and strategic location provide us with a solid foundation upon which we can build a fortified and diversified economy.
"To fully realise this potential, we must embrace the principles of sustainable industrialisation.
"We must innovate and adopt practices that not only drive economic growth but also safeguard our environment for future generations," the minister said.
"This is not just a moral imperative; it is a strategic necessity in an increasingly eco-conscious global market."
Sustainable industrialisation fosters economic growth by reducing import dependency.
The three-day annual congress, which ended on Thursday, was held under the theme: "Unlocking New Frontiers for Sustainable Industrialisation and Climate-Smart Business Growth".
"This theme calls on us all to be pioneers in climate-smart business practices, ensuring that our industries thrive while minimising their environmental footprint," he said.
