🇿🇼ZimbabweSouthern Africa
Zimbabwe's value-added exports surge as trade deficit narrows
via NewsDay Zimbabwe1 min read
Zimbabwe has recorded a surge in value-added exports, leading to a narrowing of the trade deficit. This development comes amidst various economic discussions, including a US$650 million investment vision aimed at reinforcing confidence in the country's long-term growth potential. Efforts are also underway to harmonize regional transport corridors with Malawi and Mozambique. However, challenges persist, such as power outages and raw material shortages impacting operations for manufacturers like ART, which reported declines in export and paper division volumes in the third quarter to June 2022. The country is also setting wheels in motion for a US$25 million climate recovery boost, with the WWF seeking to mobilize an additional US$25 million for nature transformation. Discussions around Zimbabwe's lithium industry highlight both leverage and risk, alongside a reordering of the Chinese supply chain. The Financial Intelligence Unit is engaging university students to combat financial crime, and high-integrity carbon markets and local credit ratings are deemed urgent for climate finance.
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This summary was AI-generated from a story originally published by NewsDay Zimbabwe.
Must ReadThe Zimbabwe Property Excellence Awards recently focused on government infrastructure projects and sports facilities. Other news from Zimbabwe includes China's commitment to supporting Vision 2030, Zimbabwe's expansion of development finance options with BRICS New Development Bank membership, and ARDA delivering 120,000MT as the country prepares for El Niño. There are also proposals for new grain levies to address climate and food security risks, and a call to address the silent dementia crisis. ART operations have been affected by power outages and raw material shortages, with exports and paper divisions seeing volume declines of 6% and 26% respectively in the third quarter to June 2022. Additionally, Zimbabwe is seeking US$9bn for energy expansion and has commissioned a specialized honey testing laboratory to boost export competitiveness. Political tensions at grasslands plots have led to violent attacks and forced evictions.
Must ReadXenophobic violence in key economic hubs, particularly South Africa, threatens Africa's economic growth and foreign direct investment. Despite a 75% surge in FDI to a record US$97 billion in 2024, recurring xenophobic incidents deter investment, disrupt intra-regional trade, and strain diplomatic ties. Migrant entrepreneurs are significant contributors to South Africa's economy, with International Labour Organization data indicating they contribute approximately 9% to the GDP, and over a third of international migrant enterprises employ South African citizens. The African Continental Free Trade Area AfCFTA, projected to increase intra-African trade by 45% by 2045, relies on the free movement of labor and safeguarding cross-border investments. The economic cost of instability is substantial, with research showing high-intensity conflicts can lead to a cumulative loss in per capita GDP of approximately 20% over five years. Xenophobic attacks in 2019 led to diplomatic tensions and operational disruptions for South African corporations like MTN, Multichoice, and Shoprite in Nigeria. The business community's silence on xenophobia is a misjudgment, as it represents a systemic business risk affecting supply chains, consumer markets, and investor confidence. Addressing xenophobic violence is crucial for sustained economic development and regional competitiveness, and for securing the "peace dividend" of social stability and productive investment. The success of the AfCFTA is linked t
Zimbabwe is looking to raise US$9 billion for its energy sector, with new regulations anticipated to accelerate grid expansion, improve electricity access, and attract new capital. This initiative comes as the country also focuses on other infrastructure projects and addresses climate and food security risks, including the impact of El Niño. The government is also conducting a survey on the private solar boom, as many households are generating their own power. Additionally, Zimbabwe recently commissioned a specialized honey testing laboratory to enhance export competitiveness.