China has now become South Africa's major trading partner, with former leader Zimbabwe falling down the pecking order to ninth, figures released last week show.

In fact, even Mozambique has surpassed Zimbabwe in the value of trade deals with South Africa, sitting one position higher than Harare, which is com-pletely unprecedented.

"From the early '80s to late '90s, Zimbabwe used to be the major trading partner of South Africa," Adriaan H Adams, counsellor: economic at the South African Embassy in Zimbabwe, told delegates to the SA/Zimbabwe business breakfast organised by BA Link.

South Africa's major trading partners include China, the United Kingdom, the United States, Germany, Italy, Belgium and Japan.

South Africa's trade with other sub-Saharan African countries -- excluding Zimbabwe - particularly those in the southern Africa region, has increased substantially.

While very little in terms of exports is moved into SA from across the Limpopo, big conglomerates are making a killing supplying basic commodities to all Zimbabwean towns and cities.

In August 1996, South Africa signed a regional trade protocol agreement with its SADC partners, aimed at providing duty-free treatment for 85% of trade by 2008 and 100% by 2012.

"Of concern to South Africa is the Zimbabwean economy's contraction, which however, seems to have been stemmed by the adoption of a multi-currency regime in early 2009," said Adams.

Dr Desire Sibanda, permanent secretary to the Ministry of Economic Development and Planning, said there was a need to promote a positive investment climate and confidence building measures, adding that a critical aspect of Zimbabwe's economy was that a low percentage of GDP was being saved.

By Staff reporter and agencies