THE Horticultural Development Council (HDC) says the suspension of the KLM/MartinAir service to Zimbabwe will negatively impact the sector as it mostly relies on the European market.
KLM/MartinAir recently said that it was cutting its flights to Zimbabwe due to operational constraints and strategic shifts in the airline’s priorities.
The challenge, however, is that the airline is a major transporter of exported goods from Zimbabwe, dealing a massive blow to potential export receipts.
HDC’s concerns come as it is targeting exports of US$1,32 billion for the year.
“The suspension of the KLM/MartinAir service to Harare is a matter of concern for Zimbabwe’s horticulture industry, a vital sector that contributes substantially to the nation’s economy through exports. For 27 years, KLM has provided a critical link to our largest market destination, Amsterdam, which serves as the gateway for Zimbabwean produce into the broader EU market,” HDC said in a statement yesterday.
“Airfreight services across the African continent have been affected by evolving EU carbon emission regulations and operational constraints within airline fleets. These factors have resulted in a significant reduction in available cargo capacity, impacting several markets, including Zimbabwe.”
HDC said a decline in the production of key export crops during the 2022/23 season, such as peas and flowers, reduced Zimbabwe’s negotiating power for scarce cargo space.
“This led to KLM/MartinAir’s temporary reduction of flights to Harare in February 2024. Although flights were later reinstated, this served as a wake-up call for the industry,” HDC said.
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“Zimbabwean exporters face increasing production costs driven by the 25% compulsory liquidation, the Intermediated Money Transfer Tax and multiple excessive regulatory costs. These challenges, if left unaddressed, undermine the competitiveness of Zimbabwean produce in the international market.”
HDC said while the suspension of KLM/Martin Air services could cause some short-term disruptions, it was optimistic about the long-term outlook.
“Available route to market options include leveraging regional airfreight hubs and connections through Ethiopia, Doha and Dubai,” HDC said.
“The horticulture industry is actively engaging with the government to advocate for policy adjustments that will attract investment and enhance Zimbabwe’s position in global markets.”
One of the biggest challenges for airlines has been remitting foreign exchange back to their head offices outside Zimbabwe.
Consequently, by July 2019, US$196 million in revenues was recorded as being owed to airlines by the International Air Transport Association.
However, to date, 90% of this amount is said to have been paid, according to State media.
