Total imports in the five months to May amounted to $2,07 billion, a decline of 12 percent compared to the same period last year. According to the latest data released by Zimstat, there was, however, an increase of 16 percent in month on month imports in May to $413,6 million from $356,4 million in April when the payment delays due to depleted nostro balances were more severe.Imports in the five months were weighed down by a cocktail of import restrictions placed on selected products by Government, weak industry demand for raw materials, weakness in the South African rand against last year, a decline in the value of petroleum products due to lower crude oil prices and troubles in the external payment systems.
Analysts expect the import pattern to show further decline at half year showing the full effects of the priority list.
According to the Reserve Bank of Zimbabwe, there are nine items in the import high priority list which will guide banks in the distribution of foreign currency towards competing demands.
These include, net exporters who import raw materials or machinery, non-exporting importers of raw materials and value addition that directly substitute import of essential goods, imports of critical goods such as basic food stuffs and fuel and agro-chemicals. Less critical imports which make up the bulk of the country's trade bill are listed under Not Priority.
According to the Zimstat data, the country imported wheat worth $36,8 million, oil cake at $22,8 million and maize at $97,37 million. Maize imports rose sharply in May at $29,9 million from $13,3 million the previous month. Bulk rice imports amounted to $26,01 million and soya bean flour and meal imports were at $4,68 million.
The country also imported apples worth $1,7 million, grapes worth $1,4 million while the fruit and veggie list also included items which are readily produced in the country like tomatoes ($293) carrots ($232 490), lettuce ($2 477), peas ($620 213), beans ($768 075) and lemons ($100 408).
Crude soya bean oil imports amounted to $39,6 million with Industry and Commerce minister Mike Bimha saying Government would continue assisting cooking oil manufacturers in importing raw materials. Margarine worth $2,16 million was also brought into the country, cane or beet sugar at $9,79 million, chewing gum at $576 041, mixed condiments and seasoning at nearly $5 million and water (all types) at $2,.5 million. In spite of enough capacity in the local industry, the country brought in $3.44 million worth of Portland cement. Petrol imports were at $175 million, paraffin at $8,3 million while diesel imports were at $323 million. About $43,1 million worth of electrical energy was imported as ZESA seeks to curtail load shedding.
South Africa accounted for the bulk of the imports at $798 million followed by Singapore at $475,8 million. Exports were at $948 million a decline of 9 percent from the same period last year. The major exports remained primary commodities although there is a current push to beneficiate raw materials in the country. The manufacturing sector's export performance between 2014 and 2015 indicates that the sector's capacity to export is declining.
In addition, the process of obtaining export documentation (permits/licences) and achieving export compliance makes it cumbersome to export. The challenge with the permits is not only their cost but also the time it takes to process them, which in itself is a higher cost.
ZimTrade is currently pushing for export reforms while the organisation is at the forefront of calling for the addressing of trade facilitation issues for the country to realise an export economic growth.
Some countries in the region (e.g. South Africa), provide export incentives to facilitate their companies to do business across borders while more recently the RBZ announced plans to introduce export incentives which will only be paid in October through bond notes, backdated to May 4 when the announcement was made.
Resultantly the trade deficit narrowed by 15 percent to $1.2 billion and the total trade decreased 11 percent to $3.01 billion from $3.4 billion last year.
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