Story by Stanley James, Business Editor
Zimbabwe has committed to more trade and investment with China, driven by deepening bilateral economic relations.
Official data released at the China – Zimbabwe Business Day in Harare this Friday shows that trade between the two economies has reached over US$3 billion since January.
The trend which reflects a year-on-year increase of over 25 percent is contributing to the strengthening of ties between the two countries.
“Firstly we appreciate trade with China, the horticulture sector presents a lot of potential in terms of horticultural produce, 70 percent being export is going into the EU markets a factor that calls for diversification to markets like China and the Middle East. I think there is a big potential for us as Zimbabwe to expand in terms of citrus exports to China, there are also products like macadamia that are doing very well, we have got opportunities across all the key products,” said ZimTrade’s chief operating officer, Mr Similo Nkala.
Identifying challenges hindering trade and investment is being cited as key for Zimbabwe – China economic cooperation.
“The two major aspects are funding and capital support and as banks, we are saying industry help us on how your business is structured so that you can submit credible plans to venture into global markets like China. So yes we can talk so much about funding but there is more that we can do beyond financing to navigate the challenging terrain as you get into China, there is also the aspect of capacity building which is vital in training basic skills for firms that are eager to venture into China,” explained local banker, Mr Solomon Nyanhongo.
China has pledged more business delegations to Zimbabwe to explore strategic business units.
“The level of commitment is there as evidenced by the rise in the overall trade volumes, an indication of growth in overall exports, so we are committed to working with China. There is no problem with entering into China, so for the last few years Zimbabwe’s companies have been eagerly venturing trade opportunities in the Chinese market, but the biggest advantage is that lots of companies have also visited China so I believe the locals in China have a big market which requires different types of products,” noted China Zimbabwe Exchange Centre founder, Mr Steve Zhou.
Tobacco is dominating Zimbabwe’s exports to China, with local industrialists pledging to broaden the external market base.
