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(HERALD) Zim exports to SA grow to 26,8pc: Survey

Zim exports to SA grow to 26,8pc: Survey
Business Reporter

SOUTH Africa is now the biggest destination of Zimbabwean manufactured goods after exports into that country grew from 19,6 percent in 2006 to 26,8 percent last year. According to the Confederation of Zimbabwe Industries Manufacturing Sector Survey for 2007 that was released week, South Africa replaces Zambia, whose exports declined 23,2 percent in 2007 from 26,2 percent a year earlier.

Mr Cliff Dube of the CZI who was part of the co-ordinating committee of the survey said the status quo could be a result of the fact that the companies visited could be predominately exporters to South Africa.

The survey, which took into consideration views of different companies operating in major cities, showed a decline in exports to most regional countries.

However, the survey noted that exports to Mozambique were on the increase as they jumped from 5,4 percent in 2006 to 7,1percent in 2007.

Exports to Botswana fell from 17,6 percent in 2006 to 12,5 percent in 2007 while those into Malawi fell from 12,5 percent in 2006 to 10,7 percent last year and exports into other regional countries fell from 12,5 percent to 7,1 percent.Exports to the rest of the world jumped to 12,5 percent in 2007 compared with 3,6 percent the year before.

According to the survey the decline in overall exports was due to the country’s export uncompetitiveness, which was prompted by absence of local credit due to the closure of international credit lines.

The situation resulted in companies, which were classified as unreliable on the international market recording a decline in exports. "Consequently, loss of confidence from foreign clients due to failure to deliver has found replacements from the East.

"Rapid depreciation of the local currency against its major trading partners has made foreign currency expensive thereby rendering exports highly uncompetitive on the international scene," read part of the report.

The survey noted that non-tariff barriers contributed significantly towards the non-performance of exports in the sense that a lot of the exporters have suddenly discovered that the previous clients on the international market are no longer accepting their products simply because of the source country.

It also pointed out that exporters were being put off by the unreliability of availability of Foreign Currency Account funds. Most exports have taken a stance against exports, for they are unable to access foreign currency earned from their FCAs.

The survey indicated that exports had remained low during the period under review due to foreign currency shortages the controlled exchange rate and raw material shortages.

Labels: EXPORTS, SOUTH AFRICA, ZIMBABWE

posted by MrK @ 5:22 AM