BY NATHAN GUMA
ZIMBABWE has benefited from the European Union market under the Economic Partnership Agreement (EPA), with data showing a 30% increase in trade since 2021, reaching US$881 million in 2023.
The EPA, signed between the EU and Zimbabwe, is part of a broader framework to promote trade and investment between the two entities, ultimately aiming for sustainable development and poverty reduction.
Since May 2012, Zimbabwe has benefited from duty-free and quota-free access to the markets of all 27 EU Member States under the EPA framework.
Zimbabwean companies can export freely to the EU, provided they meet EU internal market standards, which include health, safety, and sanitary/phytosanitary requirements, as well as voluntary market-driven standards like GlobalG.A.P., respect for human rights, and environmental protections.
The EU is the largest buyer of Zimbabwean horticultural products, such as blueberries, oranges, mange-tout peas, and sugar snap peas, purchasing over 40% of exports.
While the main exports to the EU were agricultural products, primarily horticulture, the country has also been exporting tobacco, manufactured and semi-manufactured products, and mining products.
Belgium is currently the main entry point to the EU’s Single Market, accounting for 56.5% of Zimbabwe’s exports to the EU.
Under the agreement, the EU can export a wide range of goods to Zimbabwe without duties, except for about 13% of tariff lines that are excluded for strategic and revenue purposes.
These include products of animal origin, cereals, beverages, paper, plastics and rubber, textiles and clothing, footwear, glass and ceramics, consumer electronics, and vehicles.
Main imports from the EU in 2023 were machinery and equipment (37.2% of exports), chemical products (8.6%), pharmaceutical products (8.1%), precision instruments (7.8%), cereals (7.2%), and vehicles (6.7%).
Germany was the main supplier to Zimbabwe in 2023, accounting for 17.3% of Zimbabwe’s imports from the EU.
The EU’s exports contribute to enhancing local industry and productivity, particularly in agriculture, transport, and tea and leather processing sectors.
Responding to a question by The NewsHawks, EU Ambassador to Zimbabwe Jobst von Kirchmann said that while there are hopes that EU trade with Zimbabwe reaches the US$1 billion mark, the number of Zimbabwean companies registered to export to the EU remains relatively low.
“We have only 200 Zimbabwean companies registered to export to the EU, which is relatively few. More needs to be done,” he told The NewsHawks during this year’s EU Day celebrations.
“The number one issue is information. Companies need to be informed. We have several programmes to facilitate trade with the EU, targeting small and medium-sized enterprises (SMEs)—even smaller companies—to help them overcome hurdles and export to the EU.
“We are also working with border authorities to ensure they understand the criteria for exports. For example, we’ve heard cases where machinery imported from the EU was incorrectly charged duties.”
The EU has been closely cooperating with Zimbabwe on business and investment.
Since 2021, the European Investment Bank (EIB)—the world’s largest international financial institution—along with PROPARCO (with EU guarantees), has provided over US$100 million in credit lines to Zimbabwean commercial banks namely, CABS, FCB, NMB, and Stanbic.
These funds are lent to SMEs, offering loans of up to seven years, with lower interest rates and grace periods.
The facilities have stimulated private investment, job creation, and economic resilience, with a focus on horticulture and renewable energy.
Since 2020, through its humanitarian agency ECHO, the EU has allocated over €50 million in humanitarian assistance to Zimbabwe, covering food and nutrition aid (including urban areas), protection for returning migrants, education in emergencies, disaster preparedness, environmental health, and cholera response.
