FOSTERING VALUE CHAIN COMPLIANCE THROUGH TRADECOM …€¦ · of South Africa on vegetable tanning...
6
T he Trade Comm II project is an EU funded programme that seeks to contribute to sustainable economic development and poverty reduction in African Caribbean and Pacific countries (ACP) through closer regional integration and increased participation in the global economy. ZimTrade, the country’s trade development and promotion organisation, is part of the Trade Comm II project. The project is one year long and it seeks to develop local value chains within the horticultural sector, to ensure they meet international standards. The project will strengthen the regulatory framework and the institutional capacity of Competent Authorities (Government Analyst Laboratory, the Plant Quarantine and Phytosanitary Service) for testing and certifying Zimbabwe plant products. The Horticulture sector is a low hanging fruit because of our factor advantages and good ZIMBABWEAN TANNERS URGED TO PRODUCE SUSTAINABLY Local tanneries have been encouraged to think ‘sustainability’ if they are to successfully perform on the international markets. Tanneries are amongst the highest producers of pollution with a high usage of water, energy and chemicals. 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.tradezimbabwe.com SEE STORY ON PAGE 2 ZimTrade showcases local exporters at ZITF Published by: NOT FOR SALE. May 2019 PAGE 2 www.tradezimbabwe.com [email protected] ZimTradeAlerts TOP STORY Source: ZimTrade FOSTERING VALUE CHAIN COMPLIANCE THROUGH TRADECOM PROJECT climate however export performance in the sector has been decreasing. The horticulture sector’s contribution to total exports decreased from 2 percent in 2018 to 1.5 percent in 2019, with the aggregate value of exports decreasing from US$19.5 million between Feb-Apr 2018 to US$13.5 million between Feb-Apr 2019. The decline was mainly due to a drop in exports of leguminous vegetables, nuts and citrus fruits. The decrease was also attributed to several constraints that have impacted negatively on the competitiveness of the sector, including a lack of foreign currency, and regulatory, climate and logistical challenges. Trade Comm experts recently came to Zimbabwe and where undertaking a baseline survey on seven horticultural value chains namely Sweet Potatoes, Flowers, Paprika, Bananas, Pineapples, Avocadoes and Macadamia. Through this exercise, experts were able to draw opportunities with the SPS compliance within the seven value chains. Dr. Moses Tekere, a Trade Comm project expert, highlighted that the exercise will help usher Zimbabwe’s horticultural exports by learning from international best practices exercised by some players within these value chains. From Left: Dr Christine Yamba-Yamba of Solidaridad Network Zambia explaining tanning processes to Rose of Prestige Leathers. The Programme aims to facilitate the integration of ACP countries in the global economy and value chains by improving their capacity to formulate and implement suitable trade policies, and to strengthen their competitiveness. By so doing, ACP countries will be able to diversify their export base and markets through greater integration into the regional and global value chains. TradeCom will strengthen the capacity of ACP countries and regions to negotiate bilateral and regional trade agreements to their benefits. Mr. Allan Majuru Chief Executive Officer of ZimTrade The project’s objective is to benefit SMEs, Cooperatives and Irrigation schemes to improve the quality of their produce for the international market. Trade Comm II is initially being implemented in the Eastern Highlands as we would like to tap into the potential that exists in that region. “ ”
Transcript of FOSTERING VALUE CHAIN COMPLIANCE THROUGH TRADECOM …€¦ · of South Africa on vegetable tanning...
The Trade Comm II project is an EU funded programme that seeks to contribute to sustainable economic development and
poverty reduction in African Caribbean and Pacific countries (ACP) through closer regional integration and increased participation in the global economy.
ZimTrade, the country’s trade development and promotion organisation, is part of the Trade Comm II project. The project is one year long and it seeks to develop local value chains within the horticultural sector, to ensure they meet international standards. The project will strengthen the regulatory framework and the institutional capacity of Competent Authorities (Government Analyst Laboratory, the Plant Quarantine and Phytosanitary Service) for testing and certifying Zimbabwe plant products.The Horticulture sector is a low hanging fruit because of our factor advantages and good
ZIMBABWEAN TANNERS URGED TO PRODUCE SUSTAINABLYLocal tanneries have been encouraged to think ‘sustainability’ if they are to successfully perform on the international markets. Tanneries are amongst the highest producers of pollution with a high usage of water, energy and chemicals.
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.tradezimbabwe.com
SEE STORY ON PAGE 2
ZimTrade showcases local exporters at ZITF
Published by:
NOT FOR SALE.
May 2019
PAGE 2
TOP STORY
Source: ZimTrade
FOSTERING VALUE CHAIN COMPLIANCE THROUGH TRADECOM PROJECTclimate however export performance in the sector has been decreasing. The horticulture sector’s contribution to total exports decreased from 2 percent in 2018 to 1.5 percent in 2019, with the aggregate value of exports decreasing from US$19.5 million between Feb-Apr 2018 to US$13.5 million between Feb-Apr 2019. The decline was mainly due to a drop in exports of leguminous vegetables, nuts and citrus fruits. The decrease was also attributed to several constraints that have impacted negatively on the competitiveness of the sector, including a lack of foreign currency, and regulatory, climate and logistical challenges.
Trade Comm experts recently came to Zimbabwe and where undertaking a baseline survey on seven horticultural value chains namely Sweet Potatoes, Flowers,
Paprika, Bananas, Pineapples, Avocadoes and Macadamia. Through this exercise, experts were able to draw opportunities with the SPS compliance within the seven value chains. Dr. Moses Tekere, a Trade Comm project expert, highlighted that the exercise will help usher Zimbabwe’s horticultural exports by learning from international best practices exercised by some players within these value chains.
From Left: Dr Christine Yamba-Yamba of Solidaridad Network Zambia explaining tanning processes to Rose of Prestige Leathers.
The Programme aims to facilitate the integration of ACP countries in the global economy and value chains by improving their capacity to formulate and implement suitable trade policies, and to strengthen their competitiveness. By so doing, ACP countries will be able to diversify their export base and markets through greater integration into the regional and global value chains. TradeCom will strengthen the capacity of ACP countries and regions to negotiate bilateral and regional trade agreements to their benefits.
Mr. Allan MajuruChief Executive Officer of ZimTrade
The project’s objective is to benefit SMEs, Cooperatives and Irrigation schemes to improve the quality of their produce for the international market. Trade Comm II is initially being implemented in the Eastern Highlands as we would like to tap into the potential that exists in that region.
“
”
2
May, 2019
ZIMBABWEAN TANNERS URGED TO PRODUCE SUSTAINABLY
Tanneries are amongst the highest producers of pollution with a high usage of water, energy and chemicals. More activist and conservation groups are campaigning against the use of leather products. Zimbabwe has 9 operational tanneries and the decade lost by the country has resulted in low investment in upgrading technologies and machinery. While countries such as America have done away with wet-blue leather production,
Zimbabwe continues to be a major producer of this semi-processed leather.
The Environmental Management Authority, EMA, has in the past taken the tanneries to task on their effluent management systems and the companies have put in place systems to for waste management. With such mounting pressure on the international market, the tanners have no choice but to heed these demands and invest in greener production processes. More optimum use of energy and water and the ability to treat water and still have it suitable for other purposes like irrigation, need to be the thinking of tanneries in this day.
Already at international level, efforts have and continue to be made to re-define tanneries and one such effort is the development of the ‘tannery of the future” concept, a tool which tanneries can use to carry out self-assessments that will guide them on where to improve. Another such initiative is the Leather Working Group (LWG), a group set up to audit tanneries and their audit reports have become the basis through which tanneries can make or break it. Tanneries have also been encouraged to be innovative and develop tanning recipes that reduce the usage of salt and metal (chromium) and companies like STAHL have been active in developing chemicals and offering technical support to tanneries to enable them to be more sustainable.
Steps towards improving production processes have also been taken by establishing the Zero Discharge of Hazardous Chemicals (ZDHC), Roadmap 2020 and the Manufacturing Restricted Substance List (MRSL) which provide acceptable chemicals to be used as well as
the limits to be adhered to in application. These were developed together with brands such as Adidas, H&M and Burberry. For local leather to be acceptable for such brands adherence is a must. Alternative tanning techniques such as organic and vegetable tanning which eliminate the usage of salt and chromium are also being adopted by most tanneries. Mr. Phipps challenged Zimbabwean tanneries to consider fresh tanning, and for this to be achieved, there would be need for efficient transport systems to move the fresh hides from the slaughterhouses to the tanneries before they are compromised.
The ZimTrade-PUM leather tanneries workshop was a 2-day event organised in collaboration with PUM, a senior export organization from the Netherlands, with the objective of equipping tanneries with knowledge on current trends in the tanning industry and identifying processes in Zimbabwe to be improved to increase efficiencies and opportunities for the leather industry. Exports in this sector were at approximately US$45 million in 2018 and mostly comprising raw hides and skins. Presenters included Solidaridad Network, an organisation working in 37 countries to support sustainable production in selected value chains, Mimosa Extract Company of South Africa on vegetable tanning and STAHL a major chemical supplier to the leather industry. Expectations from this workshop are on improved effluent management and with support from organisations like PUM and Solidaridad Network, tanneries will increase their focus on sustainable production. Since 2016, the sector has received a lot of technical intervention support from PUM, which has equipped the players with ideas on how to improve production processes and has led to renewed energy amongst sector players.
Local tanneries have been encouraged to think ‘sustainability’ if they are to successfully perform on the
international markets.
From the Left: Mr. Bryan Wilson of Presige Leathers, Mr Bhebhe of Vet Department, Mr Karuwa of Imponent Tanning, Mr Stefan Magielseof IM innovating and Mr Marc Omens of STAHL Source: ZimTrade
Warren PhippsSTAHL
The leather sector is under attack and to counter the attacks, production needs to be cleaner.
“”
This year’s ZimTrade Pavilion at the Zimbabwe International Trade Fair (ZITF), was a hub of activity with businesses recording over USD $12000 of potential business.
Running under the theme “Export-led industrial growth”, ZimTrade, was facilitating six SMEs from different sectors to showcase their products.
The chosen six companies were selected from SMEs who partook in ZimTrade’s capacity building program, Marketing and Branding for International Competitiveness (MBIC). The program equips companies with basic skills such as Effective Trade Fair Participation, Identifying Markets, Branding and Competitive Intelligence Gathering and Packaging for Export Markets, amongst others.
In addition to the President of Zimbabwe and President of Uganda
visiting the ZimTrade stand, this year ZITF recorded a total of 126 visitors compared to 93 in 2018.
Copperwares was among the six companies under ZimTrade at the ZITF 2019. Copperwares specialises in copper products and are working with ZimTrade to expand to different export markets. Besides the MIBC Training, the company has also received expert advice from SES, a German expert organisation in partnership with ZimTrade, on ways to increase their capacity and improve their products for the export markets.
Easy Peasy, a company in the processed food sector, also attended the fair for the first time. Just a year old, Easy Peasy has managed to fast track their success. With the help of ZimTrade the company attended ZITF 2019 and said this was the “push” they needed.
ZIMTRADE SHOWCASES LOCAL EXPORTERS AT ZITF
3
May, 2019
Our attendance at ZITF helped us to establish solid regional links, some of which include Namibia, Botswana and Zambia. With follow ups being done, hopefully these will bear results for us in the shortest possible time.
ZIMTRADE ZITF 2019
Tonderai Nyangweta Business Development Manager for Easy Peasy
“
ZITF was a great platform to showcase some of our export led products. We are happy to have participated in the trade fair as it helped us harness new linkages needed for both local and international business. Crucial relationships were made at ZITF, like the Ministry of Foreign Affairs and Trade as they have given us a platform to exhibit our proudly Zimbabwean crafted products at their seminars and events. We hope to further explore this as an opportunity for both us and the ministry to represent the country well across the globe.
Nashe MurangariMarketing Officer, Copperwares
“
””
”
@
4
May, 2019
ITALY
Zimbabwe trade with the Italy is based on the Interim Economic Agreement (iEPA). Under this trade agreement, Zimbabwe is enjoying duty-free, quota free market access for qualifying products to Italy and other European Union Members.
The composition of Zimbabwe’s exports to Italy were granite, raw hides and skins of reptiles, leather, oranges, wet blue hides, tobacco, black fermented tea, vermiculite, wooden furniture and sculptures, among others. However, major imports were packaging machinery, poultry-keeping machinery, carboxymethyl cellulose, bakery machinery, laboratory furnaces, fertilisers, machinery spare parts, dryers for agricultural products and generators, among others.
Graph below highlights the overall trade trend between Zimbabwe and Italy from 2014 to 2018:
In previous years, there have been bilateral trade and investment activities carried out in Italy and Zimbabwe which include outward and inward trade missions. Enquiries on the supply of cane sugar, hides & skins, leather, nuts, wattle extracts, nickel, oranges, grapefruit, cut flowers, peas, coffee, and black tea, among others have been received through Zimbabwe’s Diplomatic Mission in Italy. This has also contributed to strengthening of trade relations between the two Nations.
This year, ZimTrade, Zimbabwe’s national trade promotion and development organization, had a meeting with the Italian Trade Agency (ITA) and various areas of cooperation in terms of products and services that can be exchanged were identified.
Italy has a population of 59.2 million with a GDP of US$ 2,074.995million and a GDP per capita of US$ 35,041. The country is the sixth largest importer of agricultural products in the European Union, making it a good target for Zimbabwean horticulture produce. It is one of largest manufacturing economies worldwide and boasts expertise and cutting-edge technology in a variety of sectors such as agricultural mechanization (including horticulture, packaging, food processing and irrigation), transport infrastructure, water & energy (both traditional and renewable energy). Italy is also well known for its high quality mining equipment, which presents a great opportunity for potential bilateral cooperation with Zimbabwe.
Following these statistics, it is evident that there are vast opportunities for export growth in the Italy market, growth that could help in reviving Zimbabwe’s economy through strategic partnership in the various fields. ZimTrade, therefore, urges Zimbabwean exporters to explore the opportunities which are presented by this market. Visit the ZimTrade trade portal www.tradezimbabwe.com to get more information on this market.
Over the years, Italy has been one of the major export destinations for Zimbabwean products. According to Eurostat, Italy has remained Zimbabwe’s best export market in the European Union (EU28), sourcing goods worth Euro 111 million in 2018 and taking 21% and 24% of the product destined for the EU28 in 2017 and 2018 respectively.
Rome
Italy
Copyright © Free Vector Maps.comZimbabwe Bilateral Trade with Italy (2014-2018)
Zimbabwean exports to Italy Zimbabwean imports from Italy Trade Balance
5
May, 2019
FocusProductMoringa
OPPORTUNITIESThe moringa plant is beginning to gain more popularity as a new superfood for its highly nutritious profile and powerful anti-inflammatory, antioxidant and tissue protective properties among other health benefits. Moringa has become popular as a natural leaf powder supplement, although the pods, roots, bark, flowers, seeds and fruits are also edible. On the global market, Moringa Leaf Powder is used as a nutritional supplement and falls into the same market category as green superfoods such as spirulina, green barley, wheat and alfalfa sprouts. The leaves have applications in nutraceutical, pharmaceutical and cosmetics industries. Apart from leaves, moringa seeds and oil have huge market internationally with the oil from the plant being used as bio-fuel.
Zimbabwe has ideal climatic conditions to commercially grow Moringa. The plant is mostly suited to grow in dry regions and can be grown using rainwater alone. The Moringa tree flourishes under neutral to slightly acidic well-drained sandy or loamy soil but can also withstand a diverse variety of soil conditions. Moringa trees grow well from both seeds and cuttings and start to bloom after as little as eight (8) months, even in relatively poor soils.
MARKET ANALYSISDemand for Moringa has increased in the European Union (EU) market specifically in Germany, UK, Austria and The Netherlands because of its global health benefits. Moringa is generally marketed on the premise that the plant increases energy levels, improves immune health and supports weight management amongst other benefits. Currently India is the largest supplier of
Moringa to Europe, with smaller players such as Kenya, South Africa and Mozambique also starting to take a share of the huge demand that the product enjoys in the EU market.
The major countries which import moringa are China, the US, Germany, Canada, South Korea and European countries. Originally from India, moringa trees are now found in Ghana, the Philippines, Nigeria, Kenya, Rwanda and Mozambique.
The past decade has seen significant growth in moringa products, which includes moringa leaf powder. The growing awareness of their health benefits is a major factor driving the increasing consumer demand for moringa products, especially in Europe and America. Moringa is one of the most nutritionally dense plants in the world and EU reports have forecasted that its global market value will grow to approximately US$7 billion by 2020.
The plant trades under the HS code for ‘Other dried vegetables’, whole cut, sliced, broken or in powder form. According to Trade Map, in 2018, the global demand for the product stood at US$2 billion, with Europe constituting 38% of the total value. The demand for this product category (other dried vegetables, whole cut, sliced, broken or in powder) in Europe has grown by 20% from US$928 million in 2014 to US$1.1 billion in 2018.
There is currently a duty of 7.2% on Indian Moringa exports to the EU. Zimbabwean producers can therefore take advantage of the I-EPA agreement which allows Zimbabwean products duty-free quota free entry into the EU.
For Moringa oleifera to be accepted into the European food supplements market, producers need to conform to the stipulated legal requirements for natural ingredients for health products. Some of the requirements include the general food law, food safety standards, EU legislation for food supplements (covering labelling and composition requirements).
ZimTrade urges local Moringa producers to ensure consistency in supply and quality. New producers of the Moringa oleifera can also create a niche market by producing organic moringa, which is currently under supplied globally.
For more information contact ZimTrade Harare and Bulawayo offices on +263 4 369 330 – 41, +263 8677000374 and + 263 29 2266151, +263 867 7000378 or visit www.tradezimbabwe.com to access our live chat platform.
Moringa oleifera is the most widely cultivated species in the genus Moringa, the only genus in the plant family Moringa. Moringa is a fast-growing, drought-resistant tree, native to tropical and subtropical regions. It is widely cultivated for its young seed pods and leaves used as vegetables and for traditional herbal medicine. It is also used for water purification.
6
May, 2019
GetIn Touch
AFRICA
INTERNATIONAL
188 Sam Nujoma StreetAvondaleP. O. Box 2738Harare, Zimbabwe
Tel: +263 (4) 369330-41
48 Josiah Tongogara StreetP. O. Box 3090Bulawayo, Zimbabwe
Tel: +263 (9) 66151/62378ZimTradeAlerts
ZimTrade Zimbabwe
www.tradezimbabwe.com
HEAD OFFICE REGIONAL OFFICE ONLINE
CHINA
China-Africa Economic Trade Expo18-20 June 2019Tel: +86 731 8528 1285/ +86 1867 0771 231Email: [email protected]/ [email protected]
China International Fair for Investment & Trade 8-11 September 2019Website: www.chinafair.org.cn
RUSSIA
Printech18-21 June 2019Contact Person: Ms. Yekaterina KivaTel: +7 499 750 0828 Email: [email protected]: www.printech-expo.ru
RosUpack18-21 June 2019Contact Person: Ms. Yekaterina KivaTel: +7 499 750 0828Email: [email protected]: www.rosupack.com
KENYA
Kenya International Trade Exhibition1-3 August 2019E-mail: [email protected]: kicc.co.ke
MALAWI
Malawi International Trade FairDate: 20-30 June 2019Tel: +265 1 871988/813Email: [email protected]: www.mcci.org
MOZAMBIQUE
Maputo International Trade Fair (FACIM)25 August to 1 September 2019Tel: +258 21 427 151
SOUTH AFRICA
Africa’s Big Seven23-25 June 2019Tel: +27 11 266 3000E-mail: [email protected]: www.africabig7.com
Source Africa12-14 June 2019Tel: +2710 599 6156Email: [email protected]: https://sourceafrica.co.za
TANZANIA
Tanzania International Trade Fair1-5 July 2019 Tel: +255 2228 50238Website: www.tantrade.or.tz
ZAMBIA
Caminex4-6 June 2019Tel: +27 11 835 1565/ +2710 003 3059Email: [email protected]
Zambia Agricultural & Commercial Show31 July- 5 August 2019Tel: +260 977 76076/ +260211253415Email: [email protected]
ANGOLA
Luanda International Trade Fair10-14 July 2019Tel: (+244) 924 901 280 E-mail: [email protected]@filda.co.aoWebsite: www.filda.co.ao
ALGERIA
Algiers International Fair18-23 June 2019Tel: +213 2121 0123/25Email: [email protected]; [email protected]: www.safex.dz; www.fia.safex.dz
BOTSWANA
Trade Up North30 July 2019Tel: +267 3922 153/ +267 7418 1955E-mail: [email protected]: www.tradeupnorth.co.bw
Electra Mining Africa10-12 September 2019Tel: +267 397 5555Website: www.electramining.co.bw
Botswana Global Expo29 October- 1 November 2019Tel: +267 363 3300Email: [email protected]: www.globalexpo.co.bw
DRC
DRC Mining Week19-21 June 2019Tel: (+27) 21 700 3500/ (+27) 21 700 3588E-mail: [email protected]
