Namibia Trade Deficit Drops to N$2,5 Billion

7 August 2022
The Namibian (Windhoek)
By Matthew Dlamini

NAMIBIA'S export earnings in June 2022 stood at N$8 billion, up 26% on May figures, while the import bill amounted to N$10,5 billion - down by 15,9%.

According to the Namibia Statistics Agency's Namibia Trade Statistics Bulletin for June, this resulted in a trade deficit of N$2,5 billion, which is 59,4% lower than the N$6,1 billion recorded in May 2022.

Namibia's trade composition by partner showed that Botswana emerged as Namibia's largest market for exports, whereas South Africa maintained her position as the largest source market for the country.

The composition of the export basket for the month under review mainly comprised minerals such as precious stones (diamonds) and uranium, while fish remained the only non-mineral commodity in the top five products exported.

"Namibia's cumulative trade activities continued to increase for the period of January to June 2022 when compared to the same period during 2021," said the bulletin, signed by statistician general Alex Shimuafeni.

The cumulative total trade - import plus exports - by the month of June 2022 stood at N$107 billion, a noticeable 46,1% increase from N$73,2 billion recovered in June 2021.

In June 2022, mining and quarrying products emerged as the largest export goods, with a value of N$3,8 billion, accounting for 47,1% of total exports.

"Products from the industry increased by N$1,8 billion from N$2,0 billion recorded in May 2022," the bulletin said.

Products from the manufacturing industry came second, with exports valued at N$3,7 billion in June 2022. Exported products from this industry decreased by N$256 million from N$4,0 billion recorded in May 2022.

The demand side was mainly dominated by products from the manufacturing industry, with an import bill of N$6,8 billion in June 2022.

This, however, is a decrease of 4,3% from N$7,1 billion recorded the previous month. Imported mining and quarrying goods took a share of 32,1% of total imports for the month of June 2022. The bill decreased by a notable N$1,8 billion from N$5,1 billion.

SURPLUS

The value of exports in June 2022 increased by 26,0% to N$8,0 billion from its May 2022 level of N$6,3 billion. On the other hand, compared to N$6,9 billion recorded in June 2021, exports increased by 15,1%.

Imports stood at N$10,5 billion, reflecting a decrease of 15,9% month-on-month and a 24,8% increase year-on-year. Namibia imported cutlery products valued at N$7,2 million mostly sourced from South Africa and China.

Following these developments in both flows, Namibia's total merchandise trade (exports plus imports) with the ROW decreased by 1,7% from its May 2022 level of N$18,8 billion to N$18,4 billion recorded in June 2022.

Additionally, total trade strengthened by 20,4% compared to N$15,3 billion recorded in June 2021.

In June 2022, Namibia's exports to Botswana were valued at N$1,6 billion and imported goods valued at N$45 million, representing a positive trade balance between the two countries of N$1,5 billion.

With South Africa, Namibia recorded exports valued at N$1,5 billion during the month of June 2022, while imports were valued at N$3,7 billion, resulting in a trade deficit of N$2,2 billion.

Namibia's exports to France during the month under review amounted to N$718 million while imports stood at N$36 million resulting in a trade surplus of N$683 million.

Exports to China were valued at N$590 million and imports at N$749 million, resulting in a trade deficit of N$159 million.

DEFICIT

The trade deficit recorded during the month of June 2022, amounting to N$2,5 billion, was attributed mostly to the import of petroleum oils valued at N$2,9 billion, followed by civil engineering and contractors' equipment valued at N$391 million, inorganic chemical elements ranked third with imports amounting to N$667 million.

Wheat and fertilisers also contributed to Namibia's trade deficit, with imports valued at N$217 million each.

During the month of June 2022, Namibia's top five export partners were Botswana, South Africa, France, China and Spain. These top five markets accounted for 60,7% of Namibia's total exports, up from 48,9% witnessed in May 2022 and 64,5% recorded in June 2021.

Botswana emerged as the main export market for Namibia, absorbing 19,6% of all goods exported, ahead of South Africa in the second position with a market share of 18,3% of total exports.

Read the original article on Namibian.

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