Zimbabwe records US$1.7 billion trade deficit

The country has recorded a US$1.7 billion trade deficit in the third quarter of 2024, latest figures by the Zimbabwe Statistics Agency have shown.

This is against a US$1.5 billion deficit recorded in the corresponding period last year.

Gold was the top foreign currency earner for the country with small scale miners contributing the biggest chunk (60% of gold revenue).

Gold popularly known as the yellow metal is one of Zimbabwe’s main foreign currency earners.

In 2022, Zimbabwe exported $4.48B in Gold.

The main destinations of Zimbabwe exports on Gold were United Arab Emirates ($4.46B), Mozambique ($10.2M), Switzerland ($8.24M), and Hong Kong ($297k).

The 2024 gold output is projected to reach 39 tons, an increase from the 33 tons estimated for 2023, driven by ongoing expansion projects and favorable global gold prices.

Highlights – Zimbabwe Q3 2024 in numbers.

Q3 Gold Production: Increased by 33% to 10.3 tonnes (Q2: 7.7 tonnes)

First Nine Months Output: Rose 7.2% to 24.1 tonnes (2023: 22.4 tonnes)

Tax Reversal Impact:
-15% VAT on gold deliveries removed (SI 105 of 2024)
-Enhanced output through incentivized production

Small-scale Mining Contribution: 14.5 tonnes (60% of total output)

Primary Producers Contribution: 9.6 tonnes
Government Target:
-2024: 35 tonnes (2023: 30.1 tonnes)

Mining Sector Economic Impact:
-70% of Foreign Direct Investment
-80% of Export Earnings
-19% of Government Revenue.

Overall trade figures at a glance:

Total Exports: US$ 5.13 billion against (US$5.16 billion same period in 2023.

Total Imports for the country in third quarter is US$6.83 billion compared to US$6.66 billion registered during corresponding period last year.

Trade deficit: US$1.7 billion (US$1.5b)

Top 3 Exports
Gold: US$1.57b
Tobacco: US$750m
Nickel Mattes: US$743

Top 3 Imports
Petroleum oils: US$1.18b
Maize: US$416m
Motor vehicles: US$373m.