Zimbabwe's import bill goes down significantly

THE country's import bill has dropped by $1.8 billion in 2016 largely driven by tight policy interventions adopted by the Government to control imports.

According to import and export data for January to December 2016 availed by the Zimbabwe National Statistics Agency (Zimstat) last week, the country's import bill reduced from $8 billion in 2015 to $6.2 billion last year.

The agency also indicated that goods worth $3,5 billion were exported last year resulting in a trade deficit of $3,3 billion.

Zimbabwe's major exports during the period under review were tobacco and minerals such as gold and platinum.

A significant drop in imports was noted in household commodities, agro-processed products and consumer goods.

Following the adoption of a multi-currency system in February 2009, the country has experienced an influx of imported products from countries such as South Africa, Japan, China, and Brazil.

Economic commentator Mrs Wendy Mpofu attributed the decline in imports to policy interventions by Government which saw it regulating imports.

"The reduction in imports is largely to do with protectionist measures such as the Statutory Instrument 64 of 2016 the Government promulgated.

" Zimbabwe had before the interventions, become a net importer of almost every product that was found on the local market despite that some of the products were being produced locally," she said.

In June 2016, Industry and Commerce Minister Dr Mike Bimha promulgated SI64/2016 which removed several goods from the Open General Import Licence.

The products included dairy products, bottled water, margarine, coffee creamers, cooking oil, chocolates, iron and steel as well as hardware products such as cement and bricks, among others.

Some of Zimbabwe's major export markets in 2016 were Singapore, China, Zambia, South Africa, Belgium, Mozambique and the United Arab Emirates.

Recently the Reserve Bank of Zimbabwe put in place measures aimed at improving productivity and boosting exports.

These include the five percent export incentive scheme introduced towards the end of last year to benefit exporters in different sectors of the economy.

RBZ Governor Dr John Mangudya said it is critical for the country to boost exports in order to  earn the much needed foreign currency.