22 Jan 2019
Zambia has retained its title as Zimbabwe’s top export destination, with 26% of the local manufacturing companies exporting value-added products to the neighbouring country, chronicle.co.zw reports.
The Confederation of Zimbabwe Industries (CZI) released a 2018 manufacturing sector report last Friday, which covers the period of August 2017 – August 2018. The report revealed that the capacity utilisation in the manufacturing sector increased by 3.1% to an average of 48.2% in that timeframe.
The report stated: “In 2018, Zambia had the lion’s share of the export market for locally manufactured products with 26% of the companies exporting to that country.
“Zambia is an attractive export destination for local products because products are invoiced in United States dollars.”
Zambia was also the top export destination for locally manufactured products in 2017, having garnered 28% of the manufacturing share of exports.
In the report released by the CZI, Malawi ranked as the second major export destination, boasting 19% market share last year and South Africa placed third with 14%, falling from second position in 2017 when it made up for 19% share of exports.
According to the industrial representative body, a lack of competitiveness by local products on the international market and high costs of production were partially why some companies failed to export.
CZI president Mr Sifelani Jabangwe said: “We need to strengthen our relations with Zambia in terms of exports so that more locally value-added products get into that market thereby enhancing foreign currency generation for the country.”