Zimbabwe's trade deficit reaches $3.6 billion

Zimbabwe's trade deficit in the year to December amounted to $3.6 billion after imports of $7.48 billion and exports of $3.88 billion, the Zimbabwe Statistical Office (Zimstats) has said.

The trade deficit between Zimbabwe and its main trading parner, South Africa, amounted to $353m for the year ended December 31 2012.
 
According to figures from Zimstats, imports from South Africa amounted to $3.207 billion while exports to South Africa totalled $2.674 billion. Zimbabwe's exports to South Africa are however dominated by mineral exports.
 
Zimbabwe imported mostly fertilisers, diesel, petroleum oils, motor cars, phone sets and wheat. The country's exporting base is mainly in the extractive sector which includes industrial diamonds, nickel mattes and semi-manufactured gold as well as flue-cured tobacco.
 
The poor performance of exports is linked to unreliable supplies and inability to compete on price. In 1992, more than a quarter of Zimbabwean firms were exporters. However, according to the World Bank fewer than 10% of the firms are now exporting their outputs.
 
In general, lack of short-term finance for exports is limiting export-led growth for Zimbabwean firms with the potential to compete globally.