Coherent Trade Strategies for Zimbabwe Under the AfCFTA: An Application of the Partial Equilibrium Model

Mazarire Ryan Takudzwa and Michael Takudzwa Pasara
Additional contact information
Mazarire Ryan Takudzwa: University of Zimbabwe
Michael Takudzwa Pasara: London School of Economics and Political Science

Chapter Chapter 13 in Public Finance Management in the Development Matrix of the Global South, 2025, pp 267-297 from Springer

Abstract: Abstract The chapter employed the World Integrated Trade Solution-Software for Market Analysis and Restrictions of Trade (WITS-SMART) simulation and Trade-based Index Approach to establish coherent trade strategies for Zimbabwe in the dawn of the African Continental Free-Trade Area (AfCFTA). Scenario 1 simulations show that AfCFTA will create US$421 million worth of trade and US$75 million of trade diversion annually, with maize and soybeans having the highest potential for generating trade of over US$100 million per year, whilst motor vehicles are most vulnerable to trade divergence. Zimbabwe will lose approximately US$280 million in tariff revenue per year, mostly through tobacco. Exports will rise by around US$496 million annually, with agricultural products contributing the most, whilst welfare will increase by US$50 million. The Trade-based Index Approach shows that African countries are lowly integrated. Furthermore, the revealed comparative advantage index discloses that tobacco, nickel ores, natural abrasives, hides and skins, pig iron, gold (non-monetary), and sugar have some of the highest revealed comparative advantages for Zimbabwe. Thus, strategies aimed at enhancing the trade policy included the review of the country’s sensitive products as well as implementing candid and irreversible liberalisation policies. Likewise, further development of the agricultural sector through the introduction of market-driven incentives coupled with government-led direct input provision schemes and tariff and tax reform are other strategies that may be considered.

Keywords: African Continental Free-Trade Area (AfCFTA); Trade policy; Partial equilibrium model; WITS-SMART; Zimbabwe (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:aaechp:978-3-032-00525-0_13

Ordering information: This item can be ordered from
http://www.springer.com/9783032005250

DOI: 10.1007/978-3-032-00525-0_13

Access Statistics for this chapter

More chapters in Advances in African Economic, Social and Political Development from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().