By Dickson Bandera
Zimbabwe recorded a trade deficit of USD 154.8 million in May 2025, a 10.7% increase from the USD 139.8 million deficit reported in April. The widening gap came despite a rise in export earnings, as imports grew at a slightly faster pace, highlighting the country’s ongoing struggle to balance its external trade.
A trade deficit occurs when a country’s value of imports is greater than that of exports in a given period. When the value of exports exceeds the value of imports, it implies a trade surplus.
According to official figures from ZimStat, exports for May stood at USD 727.3 million, representing a 9.6% increase from USD 663.8 million in April. The growth was largely attributed to the continued strong performance of the mining sector, particularly semi-manufactured gold, which contributed 50.2% of total exports. Nickel mattes accounted for 19.1%, while tobacco, partly or wholly stemmed or stripped, made up 4.5% of the export earnings.
Other contributing products included ferro-chromium, coke and semi-coke of coal, chromium and nickel ores, unwrought platinum, and unworked industrial diamonds.
The United Arab Emirates remained Zimbabwe’s top export destination, taking in 51.1% of the country’s outbound goods. South Africa followed with 30.8%, and China accounted for 5.8%. These three countries collectively received approximately 88% of Zimbabwe’s total exports for the month. Other destinations included Mozambique, Hong Kong, Zambia, the Netherlands, Botswana, Vietnam, and Italy.
On the other side of the trade ledger, imports surged to USD 882.1 million in May, up from USD 803.7 million in April, marking a 9.8% increase. Mineral fuels, oils, and related products accounted for 20.8% of all imports, followed by machinery and mechanical appliances at 16.2%, vehicles at 8.2%, and cereals at 7.5%.
The rest of the import basket was made up of iron and steel products, electrical machinery, animal or vegetable fats and oils, plastics, fertilisers, and pharmaceutical products.
South Africa remained the dominant source of Zimbabwe’s imports, supplying 34.8% of the total. China followed with 19.0%, while Bahrain and the Bahamas accounted for 7.3% and 5.9%, respectively. Together, these four countries were responsible for 67% of Zimbabwe’s total imports in May. Other key suppliers included Mozambique, Zambia, India, the United Arab Emirates, Mauritius, and Singapore.
While the increase in export revenue is a positive development, the faster rise in imports continues to exert pressure on Zimbabwe’s foreign currency reserves. The latest figures underscore the need for the country to ramp up efforts to increase local production, promote value addition, and implement strategies to reduce dependency on imports.
As global commodity prices remain favourable, the challenge for Zimbabwe will be to leverage its export potential while narrowing the trade gap in the medium to long term.
