Zimbabwe eyes bigger share of regional market as intra-SADC trade remains low

ZIMBABWE has outlined plans to capitalise on the low levels of intra-SADC trade, which currently account for just 21% of total trade within the regional bloc.

Presenting a report on meetings of the SADC Committee of Ministers of Trade and the Ministerial Taskforce on Regional Economic Integration, Minister of Foreign Affairs and International Trade, Professor Amon Murwira, revealed that trade among SADC member states remains significantly below its potential.

Murwira said intra-SADC trade currently stands at 21%, meaning the majority of trade conducted by member states is with markets outside the region.

“Intra-SADC trade sits at just 21%, meaning 79% of our trade flows outside the region, even below Africa’s 14% average,” said Murwira.

He said the SADC Industrialisation Strategy and Regional Development Fund were designed to reverse that trend by promoting local production, strengthening regional value chains and facilitating the movement of goods and people across the bloc’s more than 400 million consumers.

“Opening borders doesn’t destroy production but it creates the market that drives it. The goal is to trade more among ourselves than outside,” Murwira said.

The minister said the meetings also deliberated on issues of particular importance to Zimbabwe, including the implementation of outstanding tariff commitments, the proposed introduction of a 30% tariff on sugar and dairy products, rules of origin for wheat flour and the implementation of import and tourism levies as a resource mobilisation strategy.

“Zimbabwe committed to address concerns raised in order to comply with the SADC Protocol on Trade. Regarding the Rule of Origin for Wheat Flour, there was no consensus and as such wheat flour will continue to be traded without preferential treatment until such a time a consensus is reached.

“The Meeting also considered a proposal to introduce import and tourism levies as a resource mobilisation strategy to create a predictable and sustainable funding mechanism for regional programmes,” he said.

Murwira said the 25th SADC Ministerial Taskforce on Regional Economic Integration focused on deepening regional economic integration, promoting value addition and beneficiation, increasing intra-SADC trade and enhancing industrial competitiveness in response to evolving geopolitical dynamics.

He added that the SADC Industrialisation Strategy and Roadmap report highlighted notable progress in investment promotion and policy harmonisation across the region.

“The SADC Industrialisation Strategy and Road Map report highlighted notable achievements in investment promotion and policy harmonisation within the region,” said Murwira.