Zimbabwe’s trade deficit increased by 6% to US$2.1 billion in 2024, mainly due to a rise in grain and fuel imports.
According to the latest trade data from the Zimbabwe National Statistics Agency (ZimStat), imports grew by 4% to US$9.5 billion, while exports reached US$7.4 billion, up 3% from 2023.
A trade deficit happens when a country imports more goods and services than it exports, meaning it buys more from other countries than it sells abroad.
Economic experts who spoke to the <a href="https://www.theindependent.co.zw/local-news/article/200037652/zims-trade-deficit-hits-us21bn">Independent</a> warned that the growing trade deficit could pressure the local currency and worsen inflation, which spiked sharply in January, both in U.S. dollars and local currency. Economist Stevenson Dhlamini said:
<blockquote>
The increase in imports may be due to the grain imports to complement the food security efforts caused by the drought.
The increase in exports may (also) be due to the recovery of the prices of commodities and the improving global economy.
</blockquote>
Economist Prosper Chitambara attributed the widening trade deficit to drought conditions during the 2023/24 summer cropping season, which caused a substantial decline in agricultural production. Said Chitambara:
<blockquote>
So, it meant that our agricultural exports were affected. But it also meant we had to import more agricultural commodities into the country.
It also meant that our import bill obviously increased. But the slowdown in commodity prices in general also adversely affected our export earnings.
I think those two factors, and of course, the fact that our economy last year declined, also meant that production declined, exports therefore declined, and that affected our trade position negatively.
</blockquote>
Persistence Gwanyanya, a member of the Reserve Bank of Zimbabwe’s (RBZ) Monetary Policy Committee, said that despite the widening trade deficit, Zimbabwe is seeing growth in external trade, which could indicate a recovery in economic activity. Said Gwanyanya:
<blockquote>
While the trade deficit has been widening, our current account has been improving over the years, which reflects increased inflows from other BOP (balance of payment) items, mainly diaspora remittances.
This only demonstrates the need to harness foreign currency generated from a favourable BOP position into the formal sector.
Importantly, this demonstrates the urgency to deal with the informal sectors where a significant amount of money from favourable BOP is sloshing.
</blockquote>
Zimbabwe imports a diverse array of products, including machinery, mechanical appliances, raw materials, food, fuels, minerals, textiles, clothing, footwear, electricity, chemicals, metals, and intermediate goods. In contrast, exports are primarily composed of raw materials.

Pindula News

Zimbabwe bought more stuff from other countries than it sold in 2024, making a trade deficit of US$2.1 billion. The deficit grew because of the need to buy grain and fuel. Importing more than exporting can make the country's economy struggle and cause inflation. Experts think the import increase was because of drought affecting agriculture. However, there is hope in the growth of external trade and improvements in other areas. Zimbabwe buys many different things from other countries, but mostly sells raw materials.

Zimbabwe's Trade Deficit Widens, Reaching US$2.1 Billion In 2024

Russia has overtaken China to become Zimbabwe’s second major source of imports, behind South Africa, according to statistics released by the Zimbabwe National Statistics Agency (ZIMSTAT).
Three countries, that is, South Africa (34.7%), the Russian Federation (15.2%) and China (11.9%), accounted for around sixty-two percent of Zimbabwe’s total import value of US$901.5 million in October 2023.
Below are the trade statistics released by ZIMSTAT this Monday, 27 November:
External Trade Statistics: October 2023 – The total value of exported goods in October 2023 was US$831.9 million, representing a 22.7% increase from US$678.1 million reported in September 2023.
Imports for October: 2023 amounted to US$901.5 million, an increase of 16.7% from US$772.2 million recorded in September 2023.
The trade deficit for October 2023 was US$69.6 million, translating to a 26.4% decline from the deficit of US$94.6 million recorded in September 2023.
Sept 2023 exports value = USD678.1 million Oct 2023’s exports value = USD831.9 million. Among the country’s major export destinations in October 2023 were China (38.4%,) and the United Arab Emirates (22.8%), South Africa (16.3%).
The three countries accounted for around seventy-seven percent of the total export value of USD831.9 million.
Sept 2023 imports value = USD772.7 million Oct 2023 imports value = USD901.5 million.
Zimbabwe’s major source countries of imports in October 2023 were South Africa (34.7%), the Russian Federation (15.2%) and China (11.9%).
The three countries accounted for around sixty-two percent of the total import value of USD901.5 million.
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