Browsing: Trade surplus

Zimbabwe dollars. Many Zimbabweans are forgoing traditional Christmas travels to the countryside due to lack of money. www.theexchange.africa

The services Zimbabwe paid for range from software, to professional and technical services like mining exploration, servicing of complex machinery, expatriate medical aid schemes and so on.

If the country was able to develop the capability to provide these services, it would not only save on the expenditure of foreign exchange it would also earn foreign exchange.

There are 16 countries that make up the Southern African Development Community of which Zimbabwe is a part. All these countries use and pay for the same services that Zimbabwe is paying for. If Zimbabwe were to become an exporter of services to all these countries in the SADC region alone and they spent on services roughly what Zimbabwe spends on services.

The country could potentially earn (15 member states multiplied by US$ 636 million) US$ 9.5 billion annually. Adding this figure to the foreign exchange earnings reported in the monetary policy statement gives a perspective of potential Zimbabwe could realize. Developing the services sector requires substantial investment in education, tourism, information technology, and healthcare. All of these are in a sad state presently.