The African mining sector presents a wealth of opportunity for product suppliers and service providers throughout the value chain. In this regard, ZimTrade plays a vital role in opening doors for Zimbabwean companies who are looking for export opportunities throughout the continent.GERARD PETER finds out more from CEO ALLAN MAJURU.
Established in 1991, ZimTrade is the national trade development and promotion organisation of Zimbabwe. It is a joint venture partnership between the private sector and the Government of Zimbabwe.The organisation’s main aim is to facilitate trade between Zimbabwe and the rest of the world.
Majuru starts, “The key focus is to ensure we grow the export of goods and services from Zimbabwe. Also, we facilitate the import of strategic raw materials and equipment that help our exporters to be competitive on an international level.”
Without doubt, key to any exporter is showcasing its products and expertise to potential clients. ZimTrade assists Zimbabwean companies through organising international trade missions and having a presence at key mining exhibitions such as DRC Mining Week.
However, before embarking on such initiatives, ZimTrade does a lot of groundwork to identify opportunities for export. “Firstly, we do market surveys to assess whether there is potential for our companies. These surveys consider market penetration costs, the results of which are shared with interested companies free of charge,” adds Majuru.
One of the biggest barriers to entry into a new market is cost. As such, ZimTrade covers most of the expenses required to exhibit at international mining exhibitions or during trade missions. This includes shipping of exhibition material and paying for exhibitor stands. Sometimes, the organisation can go further and pay for an exhibitor’s transport and accommodation.
Mining a top priority
Majuru notes that the African mining sector is a key focus area for ZimTrade and has already enjoyed considerable success in creating export opportunities for local companies. “Zimbabwean companies are already exporting to mining companies in Mozambique, Botswana, Zambia, and Democratic Republic of Congo (DRC), to name but a few. Items currently being exported include PPE, mining equipment, chemicals and consumables used on mines,” he states.
In addition, Zimbabwean companies supply food for mine employees in the form of fresh produce as well as processed foods. “I think people tend to ignore that mineworkers need to be fed.
So, we’ve got a competitive advantage, not only when it comes to mining supplies but also by supplying food. We make sure that we keep the mines running,” Majuru adds.
Mining products and services aside, ZimTrade also helps to create employment opportunities for skilled Zimbabweans on African mines.
To that end, the organisation has helped tradesmen secure jobs as fitters, turners, and boilers, to name a few. Recently, it also smoothed the way for engineers to work at various Namibian mines.
A boost for SMEs
Majuru explains that many of the companies looking for export opportunities are already doing business with local mining companies. “Some of our companies have already learned the ropes locally and supply to large mining companies such as Zimbabwe-based Zimplats and Sibanye-Stillwater’s Mimosa mine. And if they can do so locally, then they are in a good position to do business overseas.”
However, before ZimTrade lends support to any company, it first must undergo a stringent vetting process. This includes company visits to ensure that products and services meet international standards. “At the end of the day, before you introduce a company to the whole world, you need to verify that they exist and are indeed able to supply to the export market. This allows us to help them be competitive,” Majuru explains.
ZimTrade further engages with companies via its social media networks. In addition, it recently set up an online B2B platform for companies to register their details to be considered for export opportunities. “We also offer various training programmes to ensure that our companies are competitive. Remember, it’s not all about selling, but rather the ability to produce the quantity and also the quality that is required by the buyers,” Majuru adds.
A key focus area for ZimTrade is to help small and medium enterprises (SMEs) enter the mainstream export market. As such, it has launched the Eagles’ Nest programme that helps to empower SMEs, particularly youth- and women-owned companies.
Majuru states that often-smaller companies have an advantage over larger ones. That’s because usually there is a single owner and less red tape when it comes to decision-making. As such, these companies can adapt quickly to market requirements – a factor that has enabled ZimTrade to help SMEs in the export market.Success in the DRCAs stated earlier, ZimTrade believes the African mining market offers a wealth of opportunities for Zimbabwean companies. It is for this reason that it has conducted trade missions to a range of countries including South Africa, Botswana, Mozambique, Malawi, Zambia, Ghana, and Senegal. Recently, the organisation arranged for a trade mission to Lubumbashi, DRC – a country where it has enjoyed great success.
A large part of this success stems from exhibiting at DRC Mining Week. “When we exhibited at the event in 2019, it was a huge eye-opener for us as we realised that the DRC mining sector is full of potential.
Following the event, we planned outward trade missions to the country and met with a host of mining companies to solidify business partnerships.
“I am pleased to say that 80% of the deals we concluded were as a result of DRC Mining Week and we have a number of Zimbabwean companies supplying goods and service to mines in that country,” Majuru states.
Having a footprint in the DRC has also enabled ZimTrade to explore opportunities in neighbouring Zambia. Already it has arranged for company visits in Kitwe, a base for several mining operations. It hopes to arrange a trade mission to the region in the coming months.While ZimTrade’s objective is to create export opportunities across the globe, it views Africa as holding the greatest potential. In fact, currently, 60% of Zimbabwean export trade is done in Africa. “Our focus is to boost intra-African trade. From there, we will grow our wings to fly to other continents,” Majuru concludes. – Mining Review
