Southern Africa: Mozambique to Overtake Zimbabwe As SA's Leading Trading Partner?

30 April 2002
The Insider (Harare)

Harare — Mozambique could soon overtake Zimbabwe, if it has not already done so, as South Africa's largest trading partner in Africa but with international sanctions looming and a severe drought devastating the country, Zimbabwe may have to rely more on its southern neighbour much to the chagrin of South Africa's business community which seems all out to punish President Robert Mugabe for "stealing" the presidential elections of March. But trade between the

continent's powerhouse and its allies is so skewed that South Africa exports four and a half times what it imports to the rest of the continent. And when it

comes to business, South Africa can do without its sister countries.

Its trade with the whole of Africa only accounts for 14 percent of its trade. Trade with Asia is higher at 19 percent while that with Europe is a staggering 40 percent. But there is every reason to be optimistic. Pretoria is at least trying to expand its trade with the rest of Africa though it exports finished products to these countries while it exports primary and intermediate goods to Europe. Pretoria's biggest problem is that it is too rich. Its Gross Domestic Product for 2000 was US$126.6 billion, accounting for 23 percent of Africa's GDP. Its GDP was bigger than that of Finland, Portugal, Ireland and Greece. In fact, the GDP of Gauteng alone, which houses the former Vaal triangle, is bigger than that of any country in Africa except Egypt. Its exports to Africa, excluding the customs union, mounted to US$3.7 billion last year compared to imports of only US$856 million.

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