THE topmost target of Zimbabwe’s economic development agenda is clear — the attainment of an upper middle-income economy by 2030.
To accomplish this, Vision 2030, championed by President Mnangagwa’s Government, addresses key issues aimed at improving livelihoods and reducing poverty.
Pursuant to Vision 2030, Government developed the National Development Strategy 1 (NDS1) in line with the aspirations contained in the United Nations’ Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063.
Explaining the linkages between Vision 2030 and the global development agenda, President Mnangagwa once said: “Zimbabwe’s Vision 2030 directly addresses the aspirations highlighted by the SDGs and Agenda 2063, and seeks a development path which leaves no one and no place behind.”
Clearly, the integration of all communities in the export business will make it easy to attain the targets set under Vision 2030, as well as the SDGs.
This is because foreign currency generation, through the export business, will improve the livelihoods of rural communities. What is important is perhaps taking a closer look at how integration of all communities into the export business will contribute towards these aspirations.
Ending hunger and improving livelihoods
The NDS1 — launched by President Mnangagwa in 2019 — notes that exports remain “the most sustainable source of foreign currency and important driver of economic growth and development”.
Exports contribute more towards ending hunger and poverty, while also improving livelihoods.
This explains why ZimTrade, the national trade development and promotion organisation, has prioritised integration of rural communities and smallholder farmers into the mainstream export business.
ZimTrade is currently conducting provincial baseline surveys in each of the country’s 10 provinces, which will be a reference point for specific products and services.
This will involve coming up with capacity-building programmes to assist rural communities to upscale their production and improve on their export readiness.
The target is to unlock direct market access for previously marginalised communities.
Current activities undertaken by ZimTrade to integrate rural communities into the export business include the organic certification of pineapple production by Ndiyadzo farmers.
Once certified, the participating rural farmers will earn a premium price in the Netherlands, the target market for the current project.
The recently launched National Garlic Export Project, which is aimed at boosting the production of garlic for foreign markets, will also increase foreign currency earnings for rural communities, thus contributing towards improving livelihoods.
Once export ready, most rural communities across the country will participate in the global trade in garlic, which has been growing from around US$2,2 billion in 2011 to US$3 billion in 2020, according to Trade Map. ZimTrade is also planning to replicate the National Garlic Export Project in ginger and turmeric production.
Thus, improved ginger production will allow marginalised communities to unlock the export potential of this product, whose global import bill has been growing over the past five years from US$853 million in 2015 to US$1,1billion in 2019.
Some of the potential markets for these products are the Netherlands, the United Kingdom, the United Arab Emirates, Namibia, Angola, Mozambique and the Democratic Republic of Congo.
Therefore, in line with the devolution agenda, rural communities across all the provinces must capitalise on areas in which they enjoy competitive and comparative advantages, and use these vantage points to develop into hubs for the production and export of unique products and services.
Reducing inequalities and empowering women
Globally, financial inclusion has been identified as having huge potential to address some of the key challenges that have suffocated economic development for long.
The participation of women in key production and value-chain processes is a prerequisite for growing exports, which already have been identified as a key enabler for attaining Vision 2030.
For example, women’s access to economic activities, including export businesses, will make it possible for them to contribute more towards the country’s development.
The International Trade Centre (ITC) notes that women play a major role in the global economy because they “invest more in their families than men do, in areas such as education, health and nutrition, creating a secure foundation for the future of their families and communities”.
Considering this contribution, ITC concludes that “empowering women economically, especially through their involvement in trade, creates job opportunities for everyone”.
There is a general assumption that the export business is a male-dominated industry, but this is not the case.
Efforts must be channelled to change this misconception. What is crucial now is to ensure that opportunities are made available to women, particularly around economic areas such as production, manufacturing and value addition.
Women-led businesses should also use current programmes to integrate them into the export business.
For example, ZimTrade — together with the Netherlands Embassy in Harare, the Zimbabwe Agricultural Development Trust, Hivos and PUM — launched the Food for Export Masterclass (FEM) last year to help accelerate access to foreign markets by women-led businesses.
The FEM programme is designed to build the capacity of female entrepreneurs in various aspects of horticulture, dairy production, food processing and the food export business.
It targets to transform them into successful exporters using the latest production and business methods.
The progress recorded thus far shows that women-led businesses have the potential to increase their share of the global import bill across the target sectors.
FEM is one of the many programmes currently underway to help address the economic and gender gap that women-led businesses should not shy away from.
In addition, integration of young people into the export business will improve their export earnings and address some of the current challenges such as drug abuse.
Unlocking potential in young people
Youth-led businesses must participate in key programmes that will enhance their contribution to key national economic activities, among them exportation of goods.
These activities will help young people transform their creative ideas into successful business plans.
For example, the Eagles Nest Youth Export Incubation Programme, which was launched by ZimTrade, is helping to bridge the knowledge gap by bringing together different stakeholders to support and nurture youth-led businesses across Zimbabwe into viable export-ready companies.
One of the key areas of the programme is capacity building, which will create more benefits, including direct and indirect job creation, and the development of human capital and new skills.
Going forward
Efforts must, therefore, be channelled towards the creation of an enabling environment to do business.
For example, export procedures must be streamlined to make sure foreign markets are easily accessible, even to rural communities.
Other related requirements for exports such as documentation and permit procedures must also be made easily accessible across the country in order to facilitate smooth movement of export products from the point of production to markets.
* Allan Majuru is the chief executive officer of ZimTrade
