mbulelo smpofu
Harare Bureau
The private sector has rallied behind an export-led industrialisation initiative emphasising the strategic importance of optimising existing trade agreements, particularly within the Sadc region
Recent discussions in Harare convened by key industry stakeholders underscored the strategic importance of examining and optimising existing trade agreements as a crucial driver of industrialisation and export growth.
The deliberations, as highlighted by industrialist Mr Lesley Marange, emphasise the opportunity for Zimbabwe to harness profitable markets within the Sadc region and beyond.
“Zimbabwe’s Sadc chairmanship presents a unique moment to elevate awareness about potential market opportunities and to enhance overall economic productivity,” Mr Marange affirmed.
Sadc has several key trade agreements aimed at fostering regional economic integration.
These include Sadc Protocol on Trade, also referred to as the foundational agreement for trade within Sadc.
It outlines the framework for reducing tariffs and non-tariff barriers to trade among member states.
Launched in 2008, the Sadc Free Trade Area aims to eliminate tariffs on most goods traded within the region to promote free movement of goods and encourages intra-regional trade.
Sadc Trade in Services Protocol focuses on liberalising trade in services across various sectors within the Sadc region, such as finance, tourism and transportation.
Beyond Sadc, Zimbabwe is a member of the Common Market for Eastern and Southern Africa (Comesa) Customs Union, which was launched in 2009.
However, the process of establishing the customs union has been delayed multiple times and is still ongoing.
A customs union is a type of economic co-operation where member countries agree on a common external tariff (CET).
This means that imports from outside the customs union are subject to the same tariff when sold to any member country.
Zimbabwe also ratified the Africa Continental Free Trade Area (AfCFTA) agreement, which came into effect in 2019.
However, the country requested a 15-year waiver to allow for industrialisation before fully implementing all aspects of the agreement.
AfCFTA could significantly boost Zimbabwe’s exports by opening up new markets within Africa
The Confederation of Zimbabwe Industries (CZI) has been proactive in engaging stakeholders to deliberate on current trade pacts, recognising that sustained benefits hinge on proactive market diversification and increased production capacities.
In essence, Mr Stuart Oxenford, Head of Trade and Investment at the British Embassy, said understanding and leveraging existing trade agreements was crucial for businesses to gain access to vital and long-term markets.
“The unpacking of trade agreements is critical for enabling industry access to strategic and sustainable markets,” he said.
Economic analyst Namatai Maeresera emphasised the importance of industrialisation in positioning Zimbabwean firms to capitalise on regional and international trade opportunities.
Confederation of Zimbabwe Industries Mashonaland Chamber president, Mr Wellington Dangarembizi, echoed similar sentiments, highlighting the strategic imperative of industrialisation.
“The focus must remain on shaping a future strategy that supports robust industrial growth, enabling local companies to thrive in regional and global markets,” Mr Dangarembizi said.
Zimbabwe’s participation in trade agreements within Sadc, Comesa, and the African Continental Free Trade Area underscores its commitment to fostering a conducive business environment.
Through leveraging the agreements, the country aims to bolster its export competitiveness, enhance industrial efficiency and attract foreign investment.
“The private sector’s commitment to export-led growth is pivotal in driving sustainable development and positioning Zimbabwe as a regional economic powerhouse,” Mr Maeresera.
