Should things go according to ambition, by October of this year, Zimbabwe may soon join other progressive developing countries by having its own National Export Strategy (NES).
There have been some serious and consistent push in the background to come up with a draft NES document that will hopefully get buy-in from government.
ZimTrade, which is spearheading the plan, is a national trade development and promotion organisation created in 1991 with a mandate for export growth. It is a joint venture partnership between business and the Government of Zimbabwe.
The Government of Zimbabwe itself has been putting together a new overarching National Trade Policy (NTP) to cover the period 2017 to 2021. This will replace the now exhausted NTP for the period 2012 to 2016.
Domestic industrialists and manufacturers involved in the NES initiative hope the National Trade Policy will encompass their proposed NES.
The envisaged NES is thought to be an important mechanism that will work towards achieving the overall goals of the new NTP that is being developed by the government.
Although relevant to other sectors of the Zimbabwean economy, the proposed NES will first and foremost be an assembly point for exporters in the manufacturing, horticulture and services sectors.
This is according to a detailed concept paper circulated for input to participating sub-sector representatives.
The concept paper states that
the overall objective of the NES is to unfold the potential of exports of value added products and services to make maximum contribution to GDP growth, national development, employment creation and improve the national standard of living
To ensure success of the plan, consultations around the NES will involve key government Ministries such as the Ministry of Industry and Commerce and the Ministry of Finance.
Other stakeholders also involved are the Confederation of Zimbabwe Industries (CZI), the Zimbabwe National Chamber of Commerce (ZNCC), regulators such as the Zimbabwe Revenue Authority (ZIMRA), Zimbabwe Republic Police (ZRP), Environmental Management Agency (EMA) and the Reserve Bank of Zimbabwe (RBZ).
The idea of an NES clearly enjoys full support from the government even at the highest level. In November 2016, the state owned The Herald newspaper reported that the Office of the President (OTP) and the Ministry of Industry and Commerce were eager to have an NES in place.((The Herald – Govt pushes for expedition of National Export Strategy))
It is still to be seen if the proposed ideas in the paper such as “inculcating and entrenching” what the document calls “a pro-export culture…among industrialists and regulatory agencies in Zimbabwe” will be realized.
This is critical as in a globalized and highly competitive world, industrial thought can’t help but constantly revolve around exports.
The private sector argues that its envisaged NES will increase exports to at least 25% of GDP by 2021 up from the current 20%. This way, the NES is guaranteeing a 5% increase in export contribution to national GDP.
Government support
In recent years, the industrial sector in Zimbabwe has enjoyed cordial relations and apparent support from the government. A good example is the implementation of the far reaching Statutory Instrument 64 of 2016, a well known trade restriction policy, which came about as a result of sustained lobbying by the Confederation of Zimbabwe Industries ((The Herald – CZI gives thumbs up to SI 64:2016)).
This suggests that the ideas contained in the paper will likely get to see light of day with little challenges, ultimately representing the goals and aspirations of Zimbabwe’s private sector.
This is also the case because the proposed NES appears to be adequately aligned with ZimAsset which is a highly regarded policy framework of government and the ruling party ZANU PF.
It is also apparent that after a string of trade restrictions that has ruffled feathers at home and abroad((The Financial Gazette – Import restrictions: SA threatens to shut out Zimbabwe goods in retaliation)), the government now needs a more sustainable approach to countering the negative effects of trade imbalances that have come about as a result of an unprecedented surge in imports. That approach is a systematic way of increasing exports.
The NES within the new NTP could be part of that new direction needed post trade protectionism.
The NES concept paper, which is in its finalisation stages, contains clear actionable timelines on the road to an approved National Export Strategy. Among other things, it seeks to have the consultative process completed by the end July and the approved document ready by October 2017.