CLAIM: Zimbabwe is South Africa’s biggest business trading partner.
SOURCE: Twitter user
VERDICT: False
Zimbabweans and South Africans on Twitter never seem to run out of things to argue about or debate over.
From whether Zimbabweans know how to use roll on here, here and here to serious issues around xenophobia here.
One of the enduring debates has been on the trading relationship between the two countries.
Recently, a Twitter user posted that, “Do these south Africans actually know Zimbabwe is their biggest business trading partner Zim is a country in tatters where everything is imported from SA the least being salt or matchsticks
The anc will maintain the vibes in the Zimbabwean politics,” (sic).
This is not the first time this claim has been made when economic and political issues surrounding the two countries are being discussed, as can be seen here, here and here.
Time to conclude this particular twar, maybe?
According to the South African Revenue Service (SARS), as of October 2022, South Africa’s highest exports were to United States (9.7%); China (7.4%); Germany (6.8.%); Netherlands (5.6%) and Japan (5.5%).
In terms of imports, it’s five biggest import partners were China (18.5%); India (7.9%); United States (7.2%); Germany (7.1%) and Saudi Arabia (5.0%).
South Africa shipped US$123.8 billion worth of goods around the globe in 2021. That dollar amount reflects a 38.3% gain since 2017 and a 44.5% acceleration from 2020 to 2021.
The value of international South African shipments represents 0.7% of all global exports estimated at $17.503 trillion one year earlier in 2020.
Applying a continental lens, 34.6% of South Africa exports by value were delivered to Asian countries while 29.2% were sold to importers in Europe. South Africa shipped another 22.6% worth of goods to Africa with 11.9% going to North America (11.9%).
So, maybe Zimbabwe is South Africa’s biggest trade partner on the Continent?
No, Zimbabwe is not even South Africa’s biggest trading partner in the Southern Africa region. That position goes to Botswana. Zimbabwe comes fourth on the continent – behind Botswana, Mozambique and Namibia – and 12th, globally.
Shoe is on the other foot
While Zimbabwe is not among the top ten of South Africa’s biggest trading partners, South Africa is, however, Zimbabwe’s biggest trading partner.
While, for a short period between December 2021 and January 2022, the United Arab Emirates overtook South Africa in terms of exports at 36,4%, by May 2022, South Africa was back in its pole position.
In its first quarter trade update, the Zimbabwe National Statistics Agency (Zimstat) said although exports to UAE stood at 36,4 percent in January this year compared to 42,2 percent in December 2021, they were above those of South Africa.
“Traditionally, South Africa is Zimbabwe’s major trading partner. However, in January 2022, exports to United Arab Emirates constituted 36,4 percent while exports to SA were 30,5 percent,” said the agency.
During the same period, the proportion of imports from South Africa stood at 39 percent in January 2022, compared to 39,9 percent in December 2021.
According to the report, the value of total exports in January 2022 was US$543,9 million, signifying a decrease of 8,05 percent from total exports earnings of US$591,2 million in December 2021.
“Imports decreased by 18 percent to US$632 million in January 2022 from US$771,2 million in December 2021,” said Zimstat.
In May 2022, exports to South Africa were 47.1% compared to 40.6% in April 2022. Exports to United Arab Emirates constituted 32.4% in May 2022 compared to 34.1% in April, 2022. Value of exports to China decreased to 2.3% in May 2022, from 9.9% in April 2022 the same year. Exports to Mozambique constituted 9.6% in May 2022 being an increase from 4.3% in April 2022. The proportion of exports to Belgium was 1.1% in May 2022, compared to 1.2% in April, 2022.
According to the ZimStat report, proportion of imports from South Africa was 42.8% in May 2022, compared to 43.8% in April 2022. Furthermore, the proportion of the value of imports from Singapore decreased to 13.8% in May 2022, compared to 16.4% in April 2022. Imports from China decreased to 12.1% in May 2022 from 13.6% in April 2022. Other imports in 2022 came from Mozambique (3.7%), Mauritius (3.1%), India (3.1%), (United Emirates (1.6%), Zambia (2.6%), Belgium (1.5%), United Kingdom (1.1%) and United States (0.5%).
Economist Respect Gwenzi says South Africa is Harare’s largest trading partner because the country is highly industrialised.
“The high concentration of our imports coming from a single economy is best explained in terms of industrialisation.
The neighbouring economy of South Africa has moved ahead of peers in the region and Africa at large in mechanising its industry with modern technology that enhances production processes and minimises inefficiencies. This naturally lowers the cost of production. The output is therefore comparably cheaper and can sell comparatively against peers,” Gwenzi said.
Conclusion
The claim that Zimbabwe is South Africa’s biggest trading partner is false. Zimbabwe is not even it’s biggest trading partner in the SADC region.
South Africa is, however, Zimbabwe’s biggest trading partner.
