Zimbabwe’s Monthly Trade Deficit Widens to U.S.$228 Million

ZIMBABWE’s trade deficit widened to US$228 million in just a month, signifying the pressing need to boost local manufacturing capacity.

A trade deficit occurs when a country’s imports exceed exports and is also referred to as a negative balance of trade (BOT). A wider balance of trade, whether surplus or deficit, sends economic signals about a country’s competitiveness, global market access, and the impact of economic policies.

In the case of Zimbabwe, low productivity has not matched local demand for decades.

Latest data from the Reserve Bank of Zimbabwe (RBZ) confirm that in March 2025, more imports than exports were recorded.

“The country’s trade deficit widened to US$228.0 million in March 2025, compared to US$217.9 million recorded in the previous month. On a year-on-year basis, the deficit increased from US$185.9 million in March 2024 to US$228.0 million in the reporting month,” the RBZ said.

During the period, merchandise imports amounted to US$809.9 million in March 2025, reflecting a 10.9% increase from US$730.4 million recorded in the previous month. On a year-on-year basis, imports rose by 12.4%.

During the month under review, most of the country’s imports originated from South Africa (38.2%), China (15.2%), the Bahamas (11.5%), and Mozambique (4.9%), with the rest sourced from a range of other markets.

The country’s export basket was predominantly composed of primary commodities, with gold leading at 42.4%, followed by PGMs, (16.0%), tobacco (17.1%), and other mineral exports (6.7%).

“In March 2025, the country’s exports were mainly destined for the United Arab Emirates (40.7%), South Africa (24.4%), and China at 20.8%. The remaining exports were spread across various other international markets,” said the RBZ.

Market watchers are of the view that Zimbabwe urgently needs to adopt a radical policy shift to spur local industrial productivity to plug the huge foreign currency outflows.

By  New Zimbabwe.