Zim, SA trade deficit widens

2011-07-20 09:07
Zimbabwe’s trade deficit with South Africa increased more than seven-fold over the past four years to hit R13.6 billion last year, according to a report by the ministry of economic planning and investment promotion.

Last year, the country exported goods worth R1.3 billion to South Africa, while importing R15.1 billion worth of goods, Zimbabwe’s Herald Online reported today.

Zimbabwe in 2007 imported R1.9 billion worth of goods from South Africa, and the deficit between the two trade partners widened to date to around R13.6 billion.

This factor had been accentuated by the fact that Zimbabwe’s exports to South Africa had largely declined over the last few years.

Statistics showed that South Africa, which used to account for 22% of Zimbabwe’s exports in 2005, declined to 14% by the end of last year.

On the other hand, the South African market was the Zimbabwean industry’s main supplier of most key requirements from retail products, raw materials and loans.

Zambia continued to top Zimbabwe’s export destinations in the Southern African Development Community region at around 30% of the country’s overall export volumes.

The data showed that South Africa was currently in fourth position (down from second) in terms of Zimbabwe’s export destinations in the SADC region.