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Aquiculture can grow Zimbabwe’s exports: Lake Harvest
Contents
Padenga pledges to make Kariba great again.
“MashBest” arts and crafts sector keen on export.
ZimTrade works to increase horticultural exports from
Midlands Region
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As efforts to achieve US$14 billion annual export earnings by 2030 gather momentum, Government has challenged company executives to rise above current economic challenges, explore export opportunities and adopt import substitution strategies. This was mentioned by the Minister of Foreign Affairs and International Trade, Hon Lt. Gen. (Rtd) Dr S. B. Moyo, during a ZimTrade-facilitated company visit to Lake Harvest on 17 July. The visit revealed potential in the aquiculture industry grow Zimbabwean exports, particularly through import substitution. Hon. Moyo said companies should turn to aggressive export-oriented business models and look to import substitution solutions. “Companies should make sure that they invest in downstream industries. That is reverse integration and forward
integration. Some of the challenges faced could be resolved by adopting an import substitution strategy,” he said. Due to COVID-19 implications of restricted trade, Minister Moyo encouraged companies to look into ways to improve and grow industry value chains, so that businesses can be self-reliant and focus on exporting value added products. “Instead of importing stock feed for the fish after realising that we do not have maize or soya, why don’t we invest in that area as companies. “There could be someone else who can do it but doesn’t have money. Why not have him do it because he has the expertise. “Even the smallest fish food molecule, which you are going to import should be given to our universities to research on so that we can have innovative ideas that can bring solutions scientifically.”
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Disclaimer:” Disclaimer: ZimTrade strives to compile reliable, research-based information that is passed on to our readers in good faith. However, ZimTrade does notaccept any responsibility for the accuracy of the information supplied, nor does it guarantee the status or reliability of any third party included in the Newsletter.Similarly opinions expressed by third parties in abstracts and/or interviews are not necessarily shared by ZimTrade. For more information about ZimTrade and its activities log on to www.tradezimbabwe.com”
Addressing the ministerial delegation, the Acting Chief Executive Officer of Lake Harverst, Tariro Chari, stressed the need for stakeholders to exploit opportunities in the sector. “Aquiculture has the potential to grow, however is it also an industry that is often ignored when creating business opportunities,” she said. Comparing the aquiculture industry in Zimbabwe to that of Zambia, Chari indicated that the costs for operation in Zimbabwe are too high and make it difficult for the business to be competitive. Although Chari indicated high operational costs as a challenge affecting production, the aquiculture industry can grow and contribute significantly to the growth of exports in Zimbabwe. A case study in Zambia shows that up until 2012, there was no significant aquaculture industry. However, there are currently now two industrial scale businesses farming fish on the Zambian side of Lake Kariba. With the help of the Zambian government, both farms are
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growing aggressively and have now attracted two of the world’s largest fish feed producers to invest in modern state of the art feed plants in Siavonga. The sector in Zambia is growing as a result of the incentives that have been put in place by relevant authorities, including: • Suspension of all duties on
aquaculture implements for three years in order to support the industry to be a large producer of tilapia fish and also help enhance food security for this very popular traditional food in Zambia.
• A surtax of five percent was imposed on imported to further promote competitiveness of local production.
• Fingerling production centres set up in every province to promote entry of smallholder farmers into this sector.
• There are no license fees for operation on large water bodies like Lake Kariba for aqua farmers as is the case in Zimbabwe.
Lake harvest is currently one of
the biggest aquiculture projects in Zimbabwe with expanding operations in Zambia as well. The company is also among the biggest exporters in Zimbabwe, earning over US$6 million in export revenue each year. Following the company visit Hon. Moyo pledged the government’s commitment to assisting the Aquiculture industry as they have a chance to increase their export capacity and earn more foreign currency for Zimbabwe.
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Padenga pledges to make Kariba great again.The Minister of Foreign Affairs and International Trade, Hon Lt. Gen. (Rtd) Dr S. B. Moyo, and Mashonaland West Provincial Affairs and Devolution Minister, Hon. Mary Mliswa-Chikoka recently joined ZimTrade on a familiarization tour of exporting companies in Kariba. One of the companies visited, Pandenga is one of the biggest exporting companies in Zimbabwe, having won the top ZimTrade Annual Exporter of the Year award for over two consecutive years. The firm exports crocodile skins to premium buyers in Europe markets and prides itself by providing the best quality skins that satisfy the elite markets. The skins sold by Padega is used to create high end products such as handbags, watch buckles and belts. Some familiar products include a Berkin bag, one of the most expensive designer bags. Zimbabwe claims a share of 45 percent of the world Nile crocodile
skins market with Padenga supplying half of the country’s output while controlling 85 percent of the crocodile skins high-end luxury fashion brands globally. Padenga Holdings has grown to significantly influence the premium Nile crocodile skins markets, notching up annual revenue of US$23 million for the past five years with plans to reach US$30 million by the end of the year. Through the help of ZimTrade exporting companies such as Padenga are able to continue to grow and connect with government bodies and policy makers to create an environment that will encourage the ease of doing export business. Since 2010 the company has been a success and has also been committed to reviving Kariba, both as a tourist attraction and as an industry hub. Speaking at the company visit the Chief Executive Officer of Padenga, Gary Sharp mentioned the companies plan to expand into
different investment areas such as horticulture, macademia and avocado. These investments are meant to grow into viable export businesses that will be able to generate foreign currency for the country all year round. Padenga is currently the largest employer in Kariba town and through its corporate social responsibility strategy the company has already invested a lot in developing the Kariba community. Some of these developments include, building and repairing community hospitals, educational support for local schools, support for the national parks agency in Kariba and outgrower schemes to support the local farming community. For years this Kariba, widley known as the water and wildlife wilderness has played second fiddle to Zimbabwe’s two most famous World Heritage Sites - Victoria Falls and Mana Pools. The houseboat industry has managed to survive on local and regional interest for the past few decades but has struggled to develop to its full potential without international tourism numbers. With the help of the government, Padenga pledges to revive the small town by refurbishing worn down structures, creating more tourism opportunities and growing their exporting business and the countries foreign currency earnings.
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Smallholder farmers in Mashonaland West have been urged to consolidate so that they can compete well as a unified group on export markets. This was one of the key messages delivered by Mashonaland West Provincial Affairs and Devolution Minister, Hon. Mary Mliswa-Chikoka during a Horticulture Promotion Field Day for Regional and International Market held at Robsdale Farm in early July. Through assistance from ZimTrade, the farm – owned by Tafadzwa Nyikadzino – has started exporting an array of horticultural produces to Democratic Republic of Congo. “Networking, unity and team spirit among farmers creates a synergy effect that is beneficial to the farming business,” said Hon. Mliswa-Chikoka. “Even smallscale farmers do not feel like you are being left behind, go and group so that you can produce more and have access to programmes.” Zimbabwe has experienced an increase in smallholder farmers
in recent years, most of whom have limited connection to export markets. Although some of these smallholder farmers can meet local demand, the same cannot be said for the export market, which normally requires huge quantities over a long period. Given this challenge of quantities, the participation of local smallholder farmers on the export market is limited, resulting in most of them losing market share which had previously been dominated by Zimbabwe. As the country is picking up on agriculture, primarily on export of horticultural produces, there is need for increased consolidation, which presents the viable option that will increase the contribution of smallholder farmers to national exports. In Zimbabwe, horticulture performance is deeply rooted in the ability to consolidate and aggregate products from farmers from different production zones. To integrate smallholder farmers into the high paying export market
there is need to consolidate their products for destinations which require huge quantities such as the Netherlands, United Kingdom and China. To achieve this, concerted efforts must be made to mainstream group cohesion and embarking on aggregation as a way that these farmers can tap into these lucrative destinations. Hon. Mliswa-Chikoka urged farmers in Mashonaland West to quickly group themselves, saying Government is ready to support farmers that are arranged into organized groups. She said the Mashonaland West Province has good relations with other communities in the Southern African Development Community and she will ensure that farmers are well connected to markets abroad. “We have good relations with Kavango-East region of Namibia and Zambia’s South Provinces where we signed MoUs (Memoranda of Understanding)…and we will be able to take advantage of the business that is out there,” she said.Speaking during the same event, ZimTrade CEO, Allan Majuru said smallscale farmers have a better chance of competing well in export markets if they consolidate. “Going it alone does not always work,” said Majuru, “The market needs volumes and consistence of supply and in the absence of that we are nothing, so it is important that you consolidate,” he said. Speaking to fellow farmers, Nyikadzino urged them to work together and make use of ZimTrade services, saying this is the better way to realize results. “I have seen better results working with ZimTrade and I encourage you all to come together to that we fully utilize available land and resources. “Together, there is a lot we can do and we are tipped to realise better results from this Province”
Consolidate: Mashonaland West farmers urged
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July 2020
“MashBest” arts and crafts sector keen on export“Arts and crafts is a sector that needs to be taken seriously, because of the value it holds in the Mashonaland West province.” These were the words by Mashonaland West Provincial Affairs and Devolution Minister, Hon. Mary Mliswa-Chikoka at the ZimTrade export awareness seminar for the arts and crafts sector held on 4 July. Mashonaland West, dubbed as “Mashonaland Best or MashBest” has been identified by ZimTrade as one of the provinces with the ability to grow within the arts and crafts sectors. This was evident at the short exhibition held at the end of the event where most artists showcased their work to stakeholders who included ZimTrade; Mashonaland West Provincial leadership; Ministry of Youth, Sport, Arts and Recreation; Ministry of Women Affairs, Community, Small and Medium Enterprises Development; and one of Zimbabwe’s most renowned stone sculpture artists, Dominic Benhura.
During her address, the Hon. Mliswa-Chikoka, expressed concern over how the talent in Mashonaland West province, was not being fully exploited due to the lack of formally registered talent as well as art distribution centers, that are now run down. “We want to ensure that we work towards increasing exports in Mashonaland West based on all the talent we see today, but in order to do that we have to make sure that each one of our talent is formally registered so that they can seek the help of ZimTrade to work on exporting their products,” she said. Interesting statistics from leading economies show that the arts contribute US$763.6 billion to the United States of America’s economy, more than agriculture, transportation, or warehousing. Furthermore, the arts employ around 4.9 million workers across the country with earnings of more than US$370 billion. If well-nurtured, the creative economy in Zimbabwe can be a source of structural economic
transformation, socio-economic progress, job creation and innovation while contributing to social inclusion and sustainable human development. ZimTrade, aims to harness this potential in the Zimbabwe arts and crafts sector and work towards increasing exports of Zimbabwe’s most treasured artifacts, including stone sculptures and the famous mbira, musical instrument. Currently exports for stone sculptures in Zimbabwe lie at approximately US$2 million a number that can increase if the talent in Zimbabwe is nurtured and educated on the importance of export and growing their business. However, to harness this talent, local artists, need to register as formal businesses, to fully take advantage of the export opportunities that lie for them. This was told to participating artists at the event by ZimTrade CEO, Allan Majuru. Apart from formalizing so that artists take part in international markets, Benhura mentioned need to develop local arts centres where
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Dressed in colorful African print attire, Dominic Benhura walked to the front of the stage shadowed by a sea of applause from an admiring audience. Benhura has done a lot in his career as a stone sculpture artist to command the crown in such a manner, but one could never tell with his humble nature, that he was a world-renowned artist. Across the room, you could see admiring faces from the audience at the Mashonaland West export awareness seminar who saw themselves achieving the same success as enhura, who came from humble beginnings to exhibiting his work across the world. Benhura was born in 1968 in Murehwa. Under the guidance of his already internationally acclaimed sculptor cousin Tapfuma Gutsa, he began sculpting at just six years. “The main reason why I began sculpting at such a young age was so that I was able to assist my mother who did a lot for us as a single parent. “After my father passed away, I had to assume an adult role and assist my mother to ensure we survived, and this is how I came to understand the power in my talent.” After moving to Harare in 1980, Benhura was privileged enough to meet more talented sculpture artists who were successful in their craft. The artists he met, managed to make a living of the pieces they sold to tourists who frequently visited Harare at the time. It was in this year that Dominic sold his first art piece at the age of twelve. For the first time in 1987, he showcased his work at the Chapungu Sculpture Park. This was when Benhura witnessed the interest that stone sculptures had abroad and through the help
of various agencies, him and his fellow sculpture artists managed to start exporting their pieces to international markets. Despite having no formal training, Benhura turned to sculpting full-time and dropped out of school to pursue his new love. “I regret not having completed my education, because I had to learn from different experiences that I could have avoided. “However, I would like to encourage everyone in this room to make sure they get an education because talent will not be enough when you start exporting your work.” Benhura, was recently awarded an honorary doctorate in philosophy of Arts and Culture Heritage by the Women’s University in Africa in 2019 for the outstanding work he has done for the past 40 years. “Since I’m a self-taught artist I had to spend most of my time working on my craft and missed out on a lot of great childhood experiences. “However, I’m grateful for the
journey I have had.” Over the years Benhura has proved his unique artistic vision to the world, blending metal and stone to create pieces of art that have been internationally appreciated and recognized. Today you can find his work showcased locally and abroad at places like Robert Mugabe International Airport, the national art gallery, Atlanta airport and Benson park in Colorado in the USA, Netherlands, South Africa. After receiving many awards and accolades for his work, Benhura mentioned how exporting his pieces brought him financial stability in his life and encouraged the audience to gain enough financial education to be able to sustain and grow their business. “Part of becoming a success in arts and crafts has to do with how you sustain and grow your business. “Through my talent I managed to support my family, however, if I had not prioritized my business, I would not have been as successful as I am today.
The Dominic Benhura story: An export success
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“This is why I commend workshops like this one that assist talented artists to understand the importance of registering your business and of exporting your work.” Benhura, encouraged the audience to prioritise sharing their gift with the future generation by nurturing younger talent and thereby, leaving a lasting legacy for the future of the arts and crafts sector. “Throughout my career I have taken pride in nurturing future talent. “I have students that often visit my workshop from different private schools. If we include art in our extracurricular subjects in Government schools, it could go a long way in growing art and the exports of art.”
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talent is natured in line with international trends. “It is important that we provide land that can be used as art centers, not only so that we can train future art talent, but so that local artists are able to make a living out of what they make. “Currently, most artists survive by smuggling their work, but if we show that we have an interest in their work by establishing such centers then this would go a long way in encouraging them to formalize and grow their businesses,” he said. The export awareness seminar revealed a great deal of enthusiasm to export from the local artists. To further efforts to empower local talent in the arts and crafts sector, ZimTrade is set to launch an online campaign that will market the talent in Zimbabwe to international audiences. The online campaign will run under #ArtsFromTheHeart. The campaign seeks to tell the story behind Zimbabwean crafts, which is expected to grow global interest on Zimbabwe’s pieces.
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ZimTrade works to increase horticultural exports from Midlands RegionZimTrade has embarked on an initiative to increase provincial contribution to the country’s export earnings. This is a follow up to the directive given by His Excellence, President Emmerson Mnangagwa, at the 2019 ZimTrade Annual Exporters’ Conference that all provinces must increase their contribution to national exports. The cluster development initiative will for a start focus on bringing together producers with a common interest to contribute towards exports and provide them with the necessary technical intervention support and promotional aid to penetrate identified markets. Basing on research and knowledge of activities in the different provinces, ZimTrade is working with stakeholders in the Midlands region to develop a horticultural cluster, riding on areas of competitive advantage. The Midlands region has high horticultural activity and with adequate support, farmers can be nurtured into fresh produce
exporters. The Food and Agriculture Organisation (FAO) describes an agro-based cluster simply as “a concentration of producers, agribusinesses and institutions that are engaged in the same agricultural or agro-industrial subsector, and interconnect and build value networks when addressing common challenges and pursuing common opportunities.” A recent scoping mission conducted in the farming areas around Gweru and Kwekwe provided insight on the types of crops being produced and this mainly for the local market. Only a few of the companies are involved in exporting. Export products are mainly paprika, flowers, oranges, and mange tout peas. However, the range of produce that can be grown from the region include included fine beans, peppers, lettuce, and sweet potatoes. Going forward, the clusters
currently under development seeks to address some of the challenges affecting export growth from the region. ZimTrade will also engage farmers on certification and plans are underway to provide farmers with training on GlobalGAP certification, with a positive being the show of interest from the farmers with most already in the process of establishing procedures/systems as per GlobalGAP requirements. Zimbabwe is an agro-based economy and in decades gone by, the country’s export earnings reached a peak of US$143 million comparing fairly with Kenya who were exporting US$167 million, but now has exports worth at least US$1 billion. Growing the sector and in particular farmer’s interest in growing for exports is an immediate course of action that if well implemented will undoubtedly contribute towards achievement of the 7:14 Exports Roadmap (target for exports has been set at US$7 billion by 2023 and US$14 billion by 2030).
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So, you have done all the research you can, and the preparation required to venture into the exports’ arena. The hassle that you see yourself facing now is how to get that first order? ZimTrade has over time received enquiries from companies that are keen to explore export markets, companies that have undergone the ZimTrade export development activities, information dissemination seminars and have even gone as far as registering under trade agreements and are yet to bag that first order. Exporting requires perseverance and hard work as companies will be dealing with buyers of a different culture and norms, adding the logistics and payment issues makes it seem like it is impossible, yet some companies are doing it and succeeding at that. To succeed, companies need to understand the following about breaking into exports.
A few months after conducting seminars where market intelligence is disseminated, ZimTrade follows-up companies to find out if any contacts have been done with the prospective buyers whose details will have been shared during the seminars. Minimal feedback is often received with varying reasons given for not following through. Companies are encouraged to diligently make use of the valuable leads they get in order to establish that initial contact and it is from this contact that visits can then be made and relationships cemented.
Visiting the market is a crucial part of trading internationally. Visits to prospective markets
helps the potential exporter to experience the market first-hand thereby getting a deeper understanding of the market dynamics and contacting prospective identified buyers. This is crucial as it provided that first face-to-face interaction which helps establish and build relationships that will drive the business forward. Of importance when planning the visits, is to engage not just ZimTrade but the trade attaches or embassies in the target market. The embassy will assist in setting up meetings with prospective buyers and are a source of valuable information on how business is done in that market.
Invest Resources in attending trade showsTrade shows are known to be a great source of information on potential buyers, market preferences and an opportunity to scan the competitors. Often, companies are hesitant to spend on visits and participation in external trade shows as they will be considering the costs involved and forgetting the potential benefits of attending the trade shows. What is crucial is for companies to identify the trade shows that are most appropriate to them and budget to send a representative to identified shows. Chamber-International (UK) in their “Export for Growth Guide” state that “Attending overseas events such as trade fairs, or participating in trade missions, can be great ways to test markets, attract customers appoint agents
and distributors and make sales.” The market intelligence gathered during these shows may be the breakthrough the company needed to start exporting. To also remember, though is that, sometimes it is not the first presence at a show that gets the orders, but consecutive participation.
Up your marketing game to cater for target marketsBesides the trade exhibitions and meetings with identified prospective customers, companies need to remember to have sound marketing strategies that will guide them on how to communicate with potential clients, more-so in the foreign markets. The pandemic we are currently faced with has brought to the fore the importance of being tech-savvy and companies need to invest in good online communication channels. Making use of social media and online marketing platforms to show your prospectives what you have to offer. Availability of a good website again, makes for good marketing and allows your potential customers to see what they can get from your company. ZimTrade continues to work with would-be exporters and export ready companies assisting them to successfully break into exports. Companies are encouraged to continuously engage ZimTrade for any assistance on export business and visit the Trade Information Portal to access useful guides on how
Engaging the prospective Buyers
Visits to prospective markets
From Export-Ready to Exporter: What to do
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‘Rising Global Demand for Lemons – Opportunities for Zim? As the world is ravished by the COVID-19 pandemic, businesses are looking for opportunities that will ensure their survival. Demand for some products has increased over the past few months and it is paramount for local producers to be aware of such opportunities and tap into them. Lemons are one fruit whose demand has increased this year due to the pandemic as well as increasing use of its oil in the cosmetic industry. The high vitamin C content in lemons helps strengthen the immune system and retailers have seen a surge in sales since the virus hit the world. According to Freshplaza magazine, demand in European countries increased with countries such as Germany, France and the United Kingdom being the top consumers of the fruit. Spain is the largest supplier of lemons to the European market, supplying approximately 75 percent of total consumption in the past years. Other major suppliers are South Africa, Argentina, and Turkey. Chinese exports of lemons are also on the rise contributing to increased global supply. Adverse weather conditions, diseases and changes in legislation offer opportunities for other players to supply. For example, Turkey this year
banned high volume lemon exports this season due to COVID-19 national measures. The Centre for Promotion of Exports from developing countries (CBI), in their March 2020 “The European Market for Fresh Lemons” research paper noted that, lemons from non-European producers are mainly entering the market through the Netherlands. When Spanish supply becomes less, the Netherlands imports large volumes from elsewhere, not only for the domestic market, but also for the rest of Europe. Dutch imports increase significantly between June and September. This is a period that offers the most potential for non-European suppliers. The Netherlands, because of its strong logistical solutions will likely continue to play an important role in the import of non-European lemons. However, of concern is the fact that although demand is growing, the production boom with more plantations being put up points to a possibility of oversupply in the coming years which will ultimately affect prices. Statistics from the Trade Map show a decline in the value of global imports of lemons in 2019 to US$3.6 billion from US$4.1 billion in 2018. Imported quantities by countries
like France, Italy, Germany and the United Kingdom increased in the same period which could be a sign of oversupply alluded to above. This makes it important for producers to understand global demand patterns and seek alternative markets which can be supplied at varying times. The Middle East, for example, demands early lemons and to capture that market, producers would need to be harvesting as early as beginning of April into May. Saudi Arabia is the leading importer in that market. Zimbabwe has climatic conditions that favour farming of lemons, harvest of which coincides with the period when Spanish supply declines. ZimTrade has in the past few years engaged citrus producers in Matebeleland South and Midlands regions and noted the great potential for growth of exports from that sector. Understanding the market requirements for the different markets being targeted is important to avoid potential losses arising from fruit being rejected. ZimTrade continues to work with local producers in engaging relevant authorities on establishing protocols that advance the export of citrus fruit.
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Impact of the COVID-19 has led to many restrictions to trade across the globe and many countries preferring to adopt lockdown as a measure to curb the spread of the virus. On the positive side, cargo for essential services is not heavily affected since Zimbabwe’s trade partners have reduced quantities regularly imported in the immediate future. This has thus far created a potential to grow Zimbabwe’s exports, riding on areas of
competitive advantage. One of the crops set to benefit from the global rising demand is turmeric, whose market in United Arab Emirates continues to grow. According to Trade Map, the total global export bill of turmeric “curcuma” was US$300 million in 2019, up from around 189 million in 2015. This therefore presents an opportunity for Zimbabwean farmers to grow and export Turmeric. Turmeric is a flowering plant
which requires temperatures between 20 and 30 degrees and a considerable amount of rainfall to thrive. The plant is well suited to Zimbabwean climate. Turmeric is widely grown as a kitchen spice, for its medicinal uses and as an antioxidant. Turmeric powder is widely used in the United Arab Emirates as an anti-inflammatory and anti-arthritic medicine above being a spice.
Turmeric Post Covid-19 pandemic potential exports to the United Arab Emirates
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