Business Reporter —
GOVERNMENT is exploring Chinese markets for agricultural products from Zimbabwe in line with its export growth strategy, Finance and Economic Development Minister Patrick Chinamasa has said.
This is in addition to scouting for financing packages to boost local production and enhance capacity for local companies. Minister Chinamasa said this was also a follow up to a request made to President Robert Mugabe to assist in securing new markets during his visit to China.
The 2017 National Budget emphasised the need to focus on production to drive economic growth.
Minister Chinamasa, however, indicated that lack of financing and access to markets was the key impediment to local production. In line with this, Government has decided to expand the existing markets for local produce in China to enhance exports.
“We are exploring Chinese markets to be opened for Zimbabwean agriculture products inclusive of horticulture, beef, poultry and stock feeds,” said Minister Chinamasa on the sidelines of a tour of China Industrial International Group Zimbabwe in Harare.
“I am happy to say I did ask His Excellency (President Mugabe) when he went to China to make that request to China, we are going to ensure we work 24 hours to secure those markets. Zimbabwean companies now have capacity to produce, what we need is financing and markets. If we are able to boost production, then we should be able to turn around the economy,” he said.
However, Minister Chinamasa indicated the turnaround process would not happen overnight but required patience, commitment and dedication.
Agriculture Minister Dr Joseph Made said Zimbabwe had capacity to meet the quality standards, for agricultural produce, required in China. Minister Made, however, said more still needed to be done with regard to meat and animal products which have stringent requirements.
“We can maintain the quality needed by the Chinese market. We are still, however, working on complying with requirements in livestock exports, they are a bit stringent because of the risks of diseases. We have no doubt we can meet them,” said Dr Made.
Chinese Ambassador to Zimbabwe His Excellency Huang Ping said the Zimbabwe-China cooperation was not a once–off thing. He assured Zimbabwe of China’s commitment to help in the country’s economic turnaround strategy through funding key priority areas such as agriculture and infrastructure.
“We have identified priority areas which we would like to start with such as agriculture and infrastructure while we look at other projects. What you produce here in Zimbabwe is needed in China and we have a huge market for that,” he said.
In line with this, Government identified a Chinese firm, the CIIG as an anchor company to assist in scouting for markets for Zimbabwean products. Expanding markets in China will also boost the country’s exports and help narrow the budget deficit.
According to the 2017 National Budget, the country’s overall export performance is expected to further decline by 6,9 percent to $3,3 billion. In 2015, total imports were $6 billion against exports of $3,6 billion, which resulted in average trade deficit of $275 million per month.