Maravi

ZDA notes slow diversification on exports

ZDA notes slow diversification on exports
Written by Chiwoyu Sinyangwe
Wednesday, August 26, 2009 5:07:32 PM

ZDA director Glyne Michelo has observed that Zambia is not moving fast to diversify its export base for non-traditional exports as the class of goods and market destinations have remained unchanged in the last seven years.

Michelo however said the country’s National Tradition Exports (NTEs) have grown from US $264 million in 2000 to the current US $1.2 billion for this year.

He said according to official data from Zambia Development Agency (ZDA), the country exported NTEs worth US $469. 4 million during the first quarter of this year, double the export earnings during the same period last year which were about US $208.6 million.

He said this when he officiated at the Talier Presentation of the US Specialty Food Market held at ZDA offices on Monday.

“However, the range of products in the export portfolio remains confined to a few product groups mainly in commodities showing that very little or inadequate value addition is taking place in Zambia,” Michelo said. “Furthermore, Zambia continues to export to the same traditional markets in the region despite various GSP market access initiatives such as the African Growth and Opportunities Act (AGOA) of the United States, Japanese market access initiative and Canadian market access initiative among others.”

Michelo lamented that NTE exports to the US market had declined to US $2 million in 2008 from US $6 million in 2000.

“The trade balance between Zambia and US in 2008 stood at US $38 million in favour of the US,” said Michelo. “There is need to boost export production so as to take advantage of the AGOA opportunity and consequently reduce trade deficit and imbalance.”

Some of the Zambian products eligible for AGOA include fresh fruits and vegetables, cut flowers, textile products, handicrafts and curios.

Labels: GLYNE MICHELO, ZDA

posted by MrK @ 4:09 PM