Zimbabwe: Exports for Half-Year Drop 14 Percent

Source from:  The Herald (Harare) 31 July 2008 08/01/2008

ZIMBABWE'S exports for the 2008 half-year dropped by 14 percent to US$787,97 million from a year earlier, latest data from the Reserve Bank of Zimbabwe has shown. The decrease is mainly due to the increasing operational costs, power cuts, brain drain, fuel shortages and the unavailability of foreign currency. The mining sector was the highest contributor, with net overseas sales amounting to US$406,5 million despite a 16,3 percent fall in mineral shipments. Mining, which has since overtaken agriculture in foreign currency earnings, has its performance negatively affected by rising operational costs, persistent power cuts, and the flight of skilled workforce. "A significant component of under performance in mining is the area of precious minerals which is also largely accounted for by rampart smuggling," said RBZ in its mid-term monetary policy statement Previously, the RBZ said it estimated Zimbabwe was losing close to US$50 million every month through smuggling of precious stones. Total exports under the agricultural sector amounted to US$210,7 million, lower than US$228,6 million last year, reflecting a 7,8 percent decline. Farm output of major cash crops significantly declined as a result of inadequate expertise among new farmers, droughts, and lack of capital among other challenges. Tobacco exports, which used to be the major foreign currency earner raked in US$131,6 million, rising 5,4 percent from the previous comparable period. Inflows from hunting marginally declined by one percent to US$5,5 million from US$6,2 million a year ago. Horticulture exports fell two percent to US$13 million versus US$16,7 million in the previous comparable period. Foreign sales from the manufacturing sectors slid 15 percent to US$113 million from US$144,1 million in the same period last year. The Confederation of Zimbabwe Industries last week said factory output fell 27 percent in 2007. It expects industrial output to further decline this year. The central bank noted the need to enhance exporter viability through various support programmes. Meanwhile, with effect from tomorrow, proceeds retained by exporters have been lowered to 55 percent from the current 65 percent. The central bank has also extended the foreign currency liquidation period to 30 days from 21 days. Enditem