Zimbabwean exporters granted duty-free access to UK markets

Zimbabwean exporters have been encouraged to explore new markets and boost exports through the United Kingdom's Eastern and Southern Africa Economic Partnership Agreement (UK ESA EPA), which offers significant opportunities for trade expansion.

Speaking at the Zimbabwe-UK Business Forum hosted by ZimTrade in Harare yesterday, Natasha Stotesbury, Head of Trade Policy at the British High Commission in South Africa, highlighted the benefits of the agreement for Zimbabwean businesses.

"The UK has signed 33 agreements with countries in the Pacific, Caribbean, and Africa, including Zimbabwe," said Stotesbury. "These agreements, including the UK ESA EPA, allow Zimbabwe to benefit from the UK Developing Countries Trading Scheme."

The UK ESA EPA is part of Zimbabwe's broader re-engagement efforts aimed at improving relations with Western countries, and it presents a development-focused free trade framework designed to stimulate investment, strengthen supply chains, and boost competition.

Stotesbury emphasized the agreement's advantages for Zimbabwean exporters. "Our agreement provides immediate, permanent, and duty-free access to the UK market for all developing countries. It sends a positive signal to foreign investors and offers certainty for Zimbabwean businesses."

Protecting Local Industries

The agreement also includes provisions to protect Zimbabwe's local industries. "There is the exclusion of certain goods from liberalisation in Zimbabwe to safeguard local sectors from being overwhelmed by imports," she added.

The UK ESA EPA's rules of origin were another key highlight of Stotesbury's address. These rules are more flexible than those in many other trade agreements, allowing Zimbabwean businesses to source inputs or process goods in other countries while still qualifying for duty-free access to the UK market.

"The rules of origin prevent inter-digital trade and help businesses by providing flexibility. This allows Zimbabwean companies to source materials from other regions while maintaining access to the UK's duty-free trade benefits," Stotesbury explained.

Ongoing Improvements and Future Prospects

Looking forward, Stotesbury said the UK is committed to continually improving the trade agreement. "We have already discussed improvements to the rules of origin, and we are also considering expanding some chapters, such as services and investment, to further deepen trade and investment ties between Zimbabwe and the UK," she said.

ZimTrade CEO Allan Majuru also addressed the forum, emphasizing the untapped potential for Zimbabwean exports under the agreement. "There are vast opportunities in commodities like coffee, flowers, vegetables, fruits, and nuts, especially in rural areas where these resources are underutilised," Majuru noted.

He stressed the need for consistency and producing the right commodities to meet international demand. "Previously, we focused on big watermelons, but the market now prefers rock melons. It's essential that we adjust our production to match these changing preferences," Majuru said.

With the UK ESA EPA, Zimbabwean exporters now have greater access to one of the world's largest markets, presenting a clear pathway for economic growth and development.