Zim’s value added products grow by 1,5% in just three months

Spread This News

By Alois Vinga

VALUE added products recorded a 1.5% growth in the second quarter in a development which saw a number of sectors recording huge leaps on the back of recovering fundamentals, Zimbabwe National Statistics Agency (Zimstat) reported Monday.

Presenting the second quarter of the 2023 Gross Domestic Product (GDP) report, the statistics agency said there was significant growth recorded across a number of the country’s economic sectors.

“During the period, Zimbabwe recorded a growth rate of 1,5% in Value Added from the first quarter of 2023 mainly on account of improved electricity production, increased mineral output, improved agriculture output, Increased manufacturing output and a surge in Accommodation and Food Services,” the report said.

Accommodation and Food Services grew by 58,6% from -23,2% recorded in the first quarter of 2023, electricity production improved by 18,3% up from -21,6%, transport and storage 12,7% from – 13,5% and manufacturing reached 4,9% from -35,9%.

The top-performing sectors during the period were Wholesale and Retail Trade, Mining and Quarrying, Agriculture, Manufacturing, Finance and Insurance.

“The quarterly GDP estimate for the Second quarter of 2023 is ZWL56,7 billion. The quarterly GDP estimate for the second quarter in 2022 was ZWL 54, 3 billion. The 2023 Second quarter recorded a year-on-year growth rate of 4,5% when compared with the second quarter of 2022,” said Zimstat.

Zimbabwe is currently saddled with the pressing desire to spur productivity amid concerns that a significant proportion of foreign currency is being lost through imports.

Official data shows that the country registered a negative trade balance of US$1,24 billion during the seven months to July, up 16% compared to the prior period partly attributed to the government’s relaxation of basic commodity imports.

In the first seven months, the trade deficit stood at US$1,07 billion during the same period last year.

As part of efforts to stir value addition, the Zimbabwe National Industrial Development Policy (ZNIDP) is currently being developed and will be implemented between 2024 to 2030.

It seeks to build on the initial one that envisions attaining a manufacturing growth rate of at least 2 % per annum and a manufacturing sector investment growth rate of 3% per annum while increasing the share of the Manufacturing Value Added (MVA) in GDP to 20% by 2030.

The roadmap ambitiously intends to increase exports by 10% per annum and the share of manufacturing employment to a total of 20% by 2030.