Zim-Bots trade deficit widens

Markets
THE trade deficit between Zimbabwe and Botswana continues to widen with revelations Harare took delivery of goods worth P77,8 million against Gaborone’s exports of P29 974 in January alone.

THE trade deficit between Zimbabwe and Botswana continues to widen with revelations Harare took delivery of goods worth P77,8 million against Gaborone’s exports of P29 974 in January alone.

CHIEF REPORTER

Zimbabwe’s imports from Botswana of P77,8 million represent 1,8% of Gaborone’s total exports, according to Botswana International Merchandise Trade statistics for January data released last week by Statistics Botswana.

“Total exports for January 2014 were valued at P4 294,9 million, with 16,2% (P695,5 million) of this value destined to Sadc.

“South Africa, Namibia and Zimbabwe received 10% (P430,2 million), 3,3% (P139,6 million) and 1,8% (P77,8 million) respectively, of Botswana exports during the month under review” part of the report released by statistician general Anna Majelantle, reads.

From the report, the nature of goods traded between the two countries is not specified.

The report indicates that in November last year, Botswana imported P12 245 worth of goods while in April P38 616 were recorded.

Over the years, Zimbabweans have been flocking to the neighbouring country to seek basic food stuff and household goods.

In 2011, the two countries signed the much-awaited bilateral investment and promotion and protection (Bippa) that sought to unlock more trade and investment windows.

Bippas guarantee the safety of foreign investments against expropriation and nationalisation. They also provide for procedures for compensation when such acts occur.

The agreement sought to see the formation of new joint ventures between Zimbabwean and Botswana companies and increased investment levels.