Trade Focus

Allan Majuru

FRESH produce is one of the low hanging fruits for local exporters, particularly smallholder farmers whose participation in international markets has been increasing over the past few years.

Zimbabwe has good soils and climatic conditions conducive for growing an array of produce.

These conditions make it easy to grow exports in traditional and non-traditional markets.

The interest in export markets has been growing, with some farmers moving towards horticultural produce such as peas, fine beans and blue berries.

Most farmers considering export markets do not know where to start. Access to reliable information, capacity development and market linkages are some of the critical areas for consideration.

Further, documentation and certification are also critical processes as they form some of the initial basis for market penetration.

Decision, market research

When deciding about which product to venture into, it is important to consider several factors, such as capacity to meet and satisfy market requirements.

A thorough research is required before a decision is made and local farmers can utilise a Guide to Export Market Research, prepared by ZimTrade — the national trade development and promotion organisation — which is available on its website.

Export market research is the process of gathering and evaluating information in a target foreign market with the objective of identifying market opportunities and constraints.

Key areas to note include capacity to produce required amount, consistency in supply, availability of buyers, standards certification and associated costs, such as cold chain facilities and air freight.

Regardless of the market, some of the expectations that cut across all buyers is the ability for a manufacturer or exporter to constantly supply the agreed quantities, in the exact specifications and at the right prices.

So, without capacity to meet market requirements, it is always advised that an exporter takes time to develop their capacity, working closely with ZimTrade and its regional and international partners.

Documentation

When exporting fresh produce, the requirement is that the exporter should register with the Agriculture Marketing Authority (AMA), which is the national authority that regulates the marketing of agricultural products in Zimbabwe.

For registration with AMA, which is done annually, there are two types of registration and these are:

Agro-producer for actual farmers who would like to export; and

Agro-dealer for merchants who would be exporting fresh produce.

The next step is to apply for an export permit with the Ministry of Lands, Agriculture, Water and Rural Resettlement.

The permit is valid for a specific product, maximum quantity, and time.

For fresh produce exports, the requirement is also to attain a phytosanitary certificate issued by Plant Quarantine Services.

Phytosanitary requirements ensure control of plant diseases and they are specified by the importing country.

For local farmers, the requirements are normally specified in the import permit and it is important to coordinate well with the buyer before exporting as well as undertake necessary researches on the product.

To improve on accessibility, the phytosanitary certificates can be obtained from the Lands, Agriculture, Water and Rural Resettlement under one roof, and plans are to decentralise the service.

Once requirements are met, this will also protect the image of the country and other exporters from the entire sector, who will risk blacklisting if exported produce is found to have above permissible residual levels.

Another important documentation process is completion of Currency/Customs Declaration Form (CD1) at any commercial bank of choice.

This is an exchange control requirement with the Reserve Bank of Zimbabwe (RBZ), which specifies the value of the consignment.

Once CD1 forms are ready, exporters need to process their Bill of Entry (Form 21) with Zimbabwe Revenue Authority (ZIMRA) and this is done through clearing agents or an in-house clearing system that should be connected to ZIMRA’s Asycuda system.

The Bill of Entry specifies the product, quantity, value to be exported, transport and port of exit to be used in the export process.

Although documentation processes might seem a burden, most of them are put in place to protect other players from the sector as well as ensuring that necessary revenue is collected.

ZimTrade is also engaging authorities and related institutions to ensure that the documentation process is streamlined, making it easy for exporters to obtain all necessary permits in a short period of time.

One of the proposals put forward is the development of a one-stop electronic window for exporters, which will reduce the time and resources required to obtain permits.

Fresh produce exporters should also consider registration with regional bilateral and multilateral trade agreements that Zimbabwe is part of so that they enjoy exporting duty free or at a preferential rate.

Available trade agreements include COMESA, SADC, Zimbabwe-Malawi Trade Agreement, Zimbabwe-Botswana Trade Agreement, Zimbabwe–Mozambique Trade Agreement, Zimbabwe-South Africa Trade Agreement and Zimbabwe-Namibia Trade Agreement, ESA-UK Economic Partnership Agreement and ESA-EU Economic Partnership Agreement.

ZimTrade also assists local farm produce exporters to register for any of the existing trade agreements through ZIMRA. A certificate of origin signed by the exporter or manufacturer of the goods and duly authenticated by ZIMRA should be produced for exporters to benefit from the trade agreements.

For preferential tariffs, Certificate of Origin required include:

EUR1 Movement Certificate — for goods being exported to the European Union countries;

GSP (Generalised System of Preferences) Certificate Form A — for export to countries that offer tariff preferences;

Certificate of origin for export to countries which have ratified the COMESA Free Trade Area;

Certificate of origin for export to countries which have ratified the SADC Trade Protocol;

Form 18 for export to Malawi;

Form CE59 for export to Botswana;

Form CE59 for export to Namibia;

Zimbabwe/Mozambique Certificate of Origin for export to Mozambique; and

Form DA 59 for export to South Africa.

All Certificates of Origin can be obtained at ZimTrade’s offices in Harare or Bulawayo after completing a once-off registration with ZIMRA for that particular trade agreement.

For small-scale traders, the Common Market for Eastern and Southern Africa offers the Simplified Trade Regime (STR) to help the small trader to benefit from the preferential rates enjoyed by the commercial trader when importing or exporting goods within COMESA member states.

Currently, the regime is operational between Zimbabwe and Zambia, and Zimbabwe and Malawi — and goods traded under the regime enjoy duty free status.

This certificate is issued at the border by the customs officer and is for consignments of US$1 000 or less.

Certification

Some markets, especially the European and Middle Eastern markets require the producer of fresh produce to have certification such as the Global Gap, EcoCert, FairTrade and Rainforest Alliance, among others.

On this, there might be a need to engage a resource person specialised in the certification schemes or food safety standards required by your export market for the certification process involved.

ZimTrade recently held a webinar on how to export fresh produce to Sweden in conjunction with Open Trade Gate Sweden who also emphasised the need for one to be quality certified should they wish to export to Sweden.

Packaging

One of the critical aspects in exporting is packaging.

Packaging should be able to communicate brand status and conform to destination market requirements.

It is also critical to note that several countries have packaging requirements that should be adhered to, and it is important for an exporter of fresh produce to ascertain packaging of the final product.

Some markets are moving towards bio-degradable packaging as it is environmentally friendly.

To assist exporters in choosing the right packaging, ZimTrade recently launched in the ZimPackaging portal (www.zimpackaging.co.zw).

Transportation

Fresh produce harvest such as peas require a cold chain management and the producer of such should be prepared to invest in cold room facilities.

Mode of transport should also consider the lifespan of the product.

Current exporters of peas to Europe are utilising cargo airlines and these have been making it easier to cut down on delivery time, which is important for most produce.

However, products such as sweet potatoes may need to be ferried through sea for long distance due to bulkiness.

These costs should be thoroughly examined, and all options explored for one to achieve competitiveness in pricing.

Feedback, after-sale support

It is also important for the exporter to attain feedback from buyers and try to see areas of improvement and this should be a continuous process as one tries to achieve the highest quality standard and customer satisfaction.

Allan Majuru is ZimTrade chief executive.