source: zimtrade. cost of customs …...imbabwean producers of hand-crafted products are encouraged...

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ZAMBIA’S AGRICULTURAL SECTOR IS ABOUND WITH OPPORTUNITIES Zambia’s agricultural sector offers growing opportunities to suppliers of inputs and equipment. This was aptly illustrated by the continued growth of the Agritech Expo, recently held in Chisamba, Zambia. Disclaimer: ZimTrade strives to compile reliable, research-based information that is passed on to our readers in good faith. However, ZimTrade does not accept any responsibility for the accuracy of the information supplied, nor does it guarantee the status or reliability of any third party included in the Newsletter. Similarly opinions expressed by third parties in abstracts and/or interviews are not necessarily shared by ZimTrade. For more information about ZimTrade and its activities log on to www.zimtrade.co.zw SEE STORY ON PAGE 2 SEA FREIGHT TO DOMINATE TRANSPORTATION OF FRESH PRODUCE Page 3 HANDICRAFT SECTOR URGED TO UTILISE DIGITAL MARKETING Page 2 Published by: NOT FOR SALE. May 2017 www.zimtrade.co.zw www.tradezimbabwe.com [email protected] ZimTradeAlerts TOP STORY COST OF CUSTOMS DECLARATION FORMS REDUCED UNDER THE EASE OF DOING EXPORT BUSINESS FRAMEWORK Mr Christopher Tsimba, the ZimTrade Manager Market Information (left) takes the Zambian President, Mr Edgar Lungu (second from left) on a tour of the ZimTrade stand at the Agritech Expo in Chisamba, Zambia recently. is also an exchange control document which seeks to record and account for foreign currency earned by transporters in the form of freight and hire charges. Cost reduction of export documentation is one of the objectives of the Ease of Doing Export Business: Rapid Results Initiative (RRI) which is being spearheaded by ZimTrade and the Ministry of Industry and Commerce in collaboration with the Office of the President and Cabinet. The revised prices of CD1 and CD3 Forms translate into reduced cost of documentation for each consignment exported out of Zimbabwe. Exporters are thus encouraged to take advantage of the favorable terms and increase their exports. C onsistent with the need to improve the ease and reduced cost of doing export business, the Reserve Bank of Zimbabwe (RBZ) recently announced that it has reduced the cost of Customs Declaration (CD) Forms. The announcement was made through Exchange Control Circular No. 5 of 2017 which was issued in terms of Section 35 (1) of the Exchange Control Regulations Statutory Instrument 109 of 1996. The RBZ reduced the cost of Form CD1 and CD3 from US$10 to US$2.50, if the documents are raised against export proceeds received in advance. The forms will, however, cost US$5 if they are being raised for export proceeds to be realised within a 90-day credit period. The new documentation costs came into effect on 22 May 2017. The CD1 Form is an Exchange Control Form used by exporters to facilitate the export of goods in pursuance of a contract of sale; performance of an external contract; gifts; emigration; repair and return; exhibition samples. The form is processed by authorised dealers (commercial banks) on behalf of the RBZ. The CD3 Form Celebrating a milestone in Zimbabwe’s Trade journey. Source: ZimTrade.

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Page 1: Source: ZimTrade. COST OF CUSTOMS …...imbabwean producers of hand-crafted products are encouraged to fully utilise online and social media marketing tools to tap into the global

ZAMBIA’S AGRICULTURAL SECTOR IS ABOUND WITH OPPORTUNITIESZambia’s agricultural sector offers growing opportunities to suppliers of inputs and equipment. This was aptly illustrated by the continued growth of the Agritech Expo, recently held in Chisamba, Zambia.

Disclaimer: ZimTrade strives to compile reliable, research-based information that is passed on to our readers in good faith. However, ZimTrade does not accept any responsibility for the accuracy of the information supplied, nor does it guarantee the status or reliability of any third party included in the Newsletter. Similarly opinions expressed by third parties in abstracts and/or interviews are not necessarily shared by ZimTrade. For more information about ZimTrade and its activities log on to www.zimtrade.co.zw

SEE STORY ON PAGE 2

SEA FREIGHT TO DOMINATE TRANSPORTATION OF FRESH PRODUCEPage 3

HANDICRAFT SECTOR URGED TO UTILISE DIGITAL MARKETINGPage 2

Published by:

NOT FOR SALE.

May 2017 www.zimtrade.co.zwwww.tradezimbabwe.cominfo@zimtrade.co.zwZimTradeAlerts

TOP STORY

COST OF CUSTOMS DECLARATION FORMS REDUCED UNDER THE EASE OF DOING EXPORT BUSINESS FRAMEWORK

Mr Christopher Tsimba, the ZimTrade Manager Market Information (left) takes the Zambian President, Mr Edgar Lungu (second from left) on a tour of the ZimTrade stand at the Agritech Expo in Chisamba, Zambia recently.

is also an exchange control document which seeks to record and account for foreign currency earned by transporters in the form of freight and hire charges.

Cost reduction of export documentation is one of the objectives of the Ease of Doing Export Business: Rapid Results Initiative (RRI) which is being spearheaded by ZimTrade and the Ministry of Industry and Commerce in collaboration with the Office of the President and Cabinet.

The revised prices of CD1 and CD3 Forms translate into reduced cost of documentation for each consignment exported out of Zimbabwe. Exporters are thus encouraged to take advantage of the favorable terms and increase their exports.

Consistent with the need to improve the ease and reduced cost of doing export business, the Reserve Bank of Zimbabwe (RBZ) recently announced that it has reduced the cost of

Customs Declaration (CD) Forms. The announcement was made through Exchange Control Circular No. 5 of 2017 which was issued in terms of Section 35 (1) of the Exchange Control Regulations Statutory Instrument 109 of 1996.

The RBZ reduced the cost of Form CD1 and CD3 from US$10 to US$2.50, if the documents are raised against export proceeds received in advance. The forms will, however, cost US$5 if they are being raised for export proceeds to be realised within a 90-day credit period. The new documentation costs came into effect on 22 May 2017.

The CD1 Form is an Exchange Control Form used by exporters to facilitate the export of goods in pursuance of a contract of sale; performance of an external contract; gifts; emigration; repair and return; exhibition samples. The form is processed by authorised dealers (commercial banks) on behalf of the RBZ. The CD3 Form

Celebrating a milestonein Zimbabwe’s Trade journey.

Source: ZimTrade.

Page 2: Source: ZimTrade. COST OF CUSTOMS …...imbabwean producers of hand-crafted products are encouraged to fully utilise online and social media marketing tools to tap into the global

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May, 2017

ZimTrade values your views and comments. We encourage our readers to submit topics which they would want us to cover in this publication. We strive to publish information that is useful and responsive to our clients and

stakeholders needs.

For feedback, suggestions or complaints about our service, please contact the Chief Executive Officer on [email protected]

Dea

rRe

ader

ZAMBIA’S AGRICULTURAL SECTOR IS ABOUND WITH OPPORTUNITIES

Zambia’s agricultural sector offers growing opportunities to suppliers of inputs and equipment. This was aptly

illustrated by the continued growth of the Agritech Expo, recently held in Chisamba, Zambia, where suppliers from as far afield as Europe participated. Nine Zimbabwean companies participated under the ZimTrade banner. Agritech Expo is a specialised exhibition for the agricultural sector value chain and provides a platform for the conduct of business by agricultural professionals, small-scale farmers and commercial enterprises.

Traditionally reliant on copper, Zambia has been taking proactive steps to diversify the economy by promoting other sectors, with agriculture being a major focus. The agricultural sector is also experiencing an increased participation of Development Cooperation Partners, who are involved in financing and skills transfer programmes. Continued efforts to mordenise and commercialise the small-holder farmers have also created sustainable demand for agricultural inputs throughout the country. There are opportunities for Zimbabwean companies to supply equipment, fertilisers and agro-chemicals to the market. Agricultural inputs and equipment that have been developed for the Zimbabwean agro-sector can be adapted for the Zambian market at minimal cost since the two countries are within the same

geographical zone. Furthermore, Zambia has vast land suitable for agriculture and the country normally receives adequate rains every year.

The companies that ZimTrade facilitated to participate at Agritech Expo showcased agro-chemicals, veterinary products, fertilisers, agricultural equipment and implements. Three of the companies successfully participated in crop trials to demonstrate the efficacy of their agro-chemicals and fertilisers.

Zimbabwe Fertiliser Company’s Demo plot in Chisamba Zambia for the Agritech Expo recently.

Zambia’s agriculture statistics...

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200,000

400,000

600,000

800,000

1,000,000

1,200,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

US$

'000

Zambia's Imports of Agricultural Inputs & Implements

Seeds Fertilisers Agro-chemicalsIrrigation Pipes Ropes and Packaging Protective ClothingWire & Chains Equipment

The President of Zambia, His Excellency Mr. Edgar Lungu, toured the Zimbabwean pavilion and was impressed with the exhibits. He noted, with satisfaction, that some of the Zimbabwean exhibitors had set up shop in Zambia, thus making their products readily available in the market.

Zimbabwean companies are advised to position themselves to be players in this potentially huge market .

Zambia’s Imports of Agricultural Inputs & Implements

Source: ZimTrade.

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May, 2017

marketing their products internationally.

Speaking at the seminar, one of the participants, Mr. John Custom, who is also President of the Zimbabwe Applied Arts & Craft Association applauded ZimTrade for the initiative. He noted that online marketing skills acquired at the seminar would enable artists to reach a wider array of international customers.

Growing one’s business or brand requires an investment of time and effort in marketing as well as research on new ideas/innovations, customer tastes and markets to explore. Most crafters are finding it difficult to grow their brands due to, amongst other reasons, limitations in marketing knowledge and capabilities.

Developing online presence is important as it enables the company to reach out to the market beyond the borders.

HANDICRAFT SECTOR URGED TO UTILISE DIGITAL MARKETING

Zimbabwean producers of hand-crafted products are encouraged to fully utilise online and social media marketing

tools to tap into the global craft market, whose total imports in 2016, according to Trade Map, were US$23 billion (works of art, collectors’ pieces and antiques) as well as US$1.4 billion (basketry related products).

Hand-crafted products manufactured in Zimbabwe include basketry; carvings; stone sculptures; handbags; selected leather products and beadwork. Top craft products exported by Zimbabwe in 2016 were original sculptures, which amounted to US$2.95 million (Trade Map). These were mainly exported to South Africa, United States of America and the European Union.

ZimTrade conducted an export awareness seminar for the Arts and Craft sector from 10 to 11 May 2017 in Harare, to equip the participants with relevant skills for

Several online marketing platforms are available, for example “etsy” and “eBay” allow companies to post their products and generate sales. However, companies need to remember that whilst selling on a website can be a quick and easy way to set up shop, it also poses a lot of competition as the site also carries many other sellers.

One way of overcoming this challenge is for companies to have professionally produced advertising and photography material for online marketing. ZimTrade associate trainer and digital marketing expert, Ms. Nikolina Kobali who was one of the facilitators, highlighted the need for artists to take advantage of digital and social media platforms like Facebook, Twitter, Pintrest and Instagram as an avenue to connect with the international market.

ZimTrade has also been encouraging the use of digital marketing tools through its Marketing and Branding for International Competitiveness training programme whose objective is to enhance the export skills of established and potential exporters.

h t t p : / / y o u r b u s i n e s s . a z c e n t r a l . c o m /marketing-strategies-handmade-items-6767.html

SEA FREIGHT TO DOMINATE TRANSPORTATION OF FRESH PRODUCE

Sea freight is now the preferred transportation mode for fresh produce worldwide compared to air

transportation.

During his recent working visit to Zimbabwe, a horticultural expert from the Netherlands-based organisation PUM, Mr. Carel van Oosterzee, called on fresh produce exporters to brace for changes in the transportation mode. “The international market is advocating for awareness of environmental impact of freight-forwarding services and is preferring the use of greener services to transport goods. A cargo plane leaves a higher carbon footprint and has less carrying capacity compared to a cargo ship, which is considered to be a much greener transportation mode”, said van Oosterzee.

In the 2015/2016 season, Zimbabwe exported about 6 000 tonnes of sugar snap and mange tout peas, according

to Eurostat. In 2017, the tonnage to be exported is expected to increase to about 8 000 tonnes.

The expert added that when using sea freight, planning and timing of delivery is essential. For example, there may be a need to harvest at night or early in the morning when temperatures are still low, bring the produce quickly from the field to the pack shed as well as sort and grade product immediately for temperature optimisation. This will ensure that your product does not lose shelf life due to temperature variations arising from poor handling and re-packing.

Currently, 20 tonne containers of mange tout and sugar snap peas are transported to Johannesburg, re-packed into sea containers, and then further transported to the Ports (i.e. Cape Town and Durban). From Cape Town it takes about 18-20 days of sea journey to London or Rotterdam

(Netherlands), in containers, which should maintain a temperature of 1.5 degrees Celsius. The repacking has a negative effect on the produce.

The change from sea freight has significant effects on the marketing of the peas. Exporters need a relatively large volume of mange tout or sugar snap peas to send on a weekly basis at least one or two containers of 20 tonnes to Europe.

“Because of this, I urge exporters to form alliances to fill up containers, to optimise routings and create lower waiting times at the harbour”, said van Oosterzee.

Sea freighting is a slower mode of delivery, which means a longer pay-out period by the customer. This implies more prudent finance planning by the exporters.

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May, 2017

Zambia Agriculture & Commercial Show, Lusaka 2-7 August 2017Tel: +260 1 253 426/ 415Fax: +260 1 254 898Email: [email protected] Website: www.acsz.co.zm

7th Zambia International Mining & Energy Conference & Exhibition, Lusaka22–23 June 2017Email: [email protected] Website: www.ametrade.org/zimeczambia/

ZIMBABWE

Harare Agricultural Show21-26 August 2017Tel: +263 4 780963-6Mobile: +263 774 933 665 Email: [email protected]; [email protected]; [email protected] Website: www.zas.co.zw

2nd Senegal International Housing, Building & Construction Exhibition & Conference, Dakar10-12 October 2017Tel: +221 33 820 5214Email: [email protected]: www.ametrade.org

SOUTH AFRICA

Africa’s Big Seven, Johannesburg25-27 June 2017Tel: +27 11 7837250 Fax: +27 11 7837269 Email: [email protected] Website: www.exhibition.com

SAITEX, Johannesburg25-27 June 2017Tel: +27 11 2663000Fax: +27 11 2663205Email: [email protected]: www.gallagher.co.zw

TANZANIA

Dar es Salaam International Trade Fair, Dar es Salaam 28 June-8 July 2017Tel: +255 22 285 0238Fax: +255 22 285 0239Email: [email protected] Website: www.tptanzania.com

Build Expo Africa 2017, Dar es Salaam10-12 Aug 2017Tel: +255 752 759304; 767 246 267; 689 753 733Email: [email protected] Website: http://www.expogr.com/tanzania/buildexpo

ZAMBIA

Zambia International Trade Fair, Ndola28 June-4 July 2017Tel: +260 212 651 514Email: [email protected]; [email protected]: www.zitf.org.zm

Copperbelt Mining Trade Expo, Kitwe29-30 June 2017Tel: +260 96 161 7856Email: [email protected] Website: www.cbm-tec.com

BELGIUM

Foire Agricole-Agricultural, Forestry and Food Industry Exhibition, Libramont28-31 Jul 2017Tel: +32 61 230404Fax: +32 61 230409Website: www.foiredelibramont.be

GERMANY

Cadeaux Leipzig, Leipzig2-4 Sept 2017Tel: +49 341 678 82 70Fax +49 341 678 82 72Email: [email protected] ; [email protected]: http://www.cadeaux-leipzig.de

RUSSIA

Russian International Industrial Trade Rair “INNOPROM”, Ekaterinburg, Russia10-13 July 2017Tel: +7 (963) 970 89 49Email: [email protected] Mr. V. Cheure Ministry of Industry and Commerce, Zimbabwe Tel: +263 4 730081/7Email: [email protected]

TradeFairs

Get

& Exhibitions

In Touch

ANGOLA

Luanda International Trade Fair, Luanda18-23 July 2017Tel: +244 926 405 970Fax: +244 222 862 161Email: [email protected] Website: http://www.fil-angola.co.ao/

BOTSWANA

Global Expo Botswana, Gaborone 23-26 Nov 2017Tel: +267 318 1931 Fax: +267 317 0423 Email: [email protected] Website: www.globalexpo.co.bw

MOZAMBIQUE

Maputo International Trade Fair (FACIM), Maputo 27 August-3 September 2017Tel: +258 1 427 151 Fax: +258 1 427 129 Email: [email protected] Website: www.facimfair.com

NAMIBIA

Ongwediva Trade Fair, Ongwediva25 August-2 September 2017Tel: +264 65 230191Fax: +264 65 230610Email: [email protected]: www.ongwediva.com.na

Windhoek Show, Windhoek 29 September–7 October 2017Tel: +264 61 224 748 Fax: +264 61 227 707 Email: [email protected] Website: www.windhoekshow.na

SENEGAL

26th Dakar International Trade Fair, Dakar December 2017 Tel: +221 33 827 3465/ 2530 Fax: +221 33 827 5275/ 78 Email: [email protected] Website: www.cicesfidak.com

AFRICA

INTERNATIONAL

904 Premium CloseMount Pleasant Business ParkP. O. Box 2738Harare, Zimbabwe

Tel: +263 (4) 369330-41

48 Josiah Tongogara StreetP. O. Box 3090Bulawayo, Zimbabwe

Tel: +263 (9) 66151/62378 ZimTradeAlerts

ZimTrade Zimbabwe

www.tradezimbabwe.com

[email protected]

HEAD OFFICE REGIONAL OFFICE ONLINEwww.zimtrade.co.zw