Namibia’s trade with its largest export markets shows that the country’s economy is heavily dependent on products produced in the Erongo region.
Economist Robin Sherbourne’s latest analysis of Namibia’s trade with its major partners shows that 80% of exports by value is made up of just four products, two of which are produced in the Erongo region.
He presented the findings during his State of the Namibian Economy talk in Windhoek last Tuesday.
“Erongo is driving our economy,” Sherbourne told The Namibian yesterday.
Namibia used to be a diamond dependent economy, with production concentrated in the south of the country. As other minerals have grown in importance and the price of diamonds declined, the export value of the precious stones have fallen to fourth place in Namibia’s exports.
Instead, uranium and gold have taken over as key sectors of the economy. Currently all active uranium production takes place in Erongo. Fisheries, also an important sector, is similarly concentrated in the coastal region.
However, even with these other mineral products, the country needs to diversify its economy, Sherbourne says.
“Walvis Bay is going to be a massive hub [in the future],” Sherbourne says. If the oil and gas industry takes off in Walvis Bay, in addition to the mining and fisheries export business, the town has lots of potential.
In order to make use of that potential, the road and rail networks will need to be improved.Former Erongo governor Neville Itope told The Namibian that Erongo will continue to contribute significantly to the economy.
“It’s strategically located, linked to SADC and the international markets. The industries entering Walvis Bay are also very dynamic. It used to have only mining and fishing, but more sectors [are entering],” Itope said.
Edward Gaingob, control administrative officer in the Erongo governor’s office, told The Namibian that the region’s logistics must support its industry.
“The extension of the harbour should go hand in hand with the expansion of the rail network,” he said.
The country’s road network is known to be one of the best in Africa, but a rail system could support the booming mining and salt industries.
“We all know Erongo is important to the country. Most of the mining companies are in the Erongo region and most fishing companies are based in Erongo. It’s also home to most tourist attractions,” Gaingob said.
BIGGEST PARTNERS
Changing prices of goods has also flipped the rankings on who Namibia’s most important trading partners are.
According to Sherbourne, political relationships with countries do not determine trading relationships.
“The destination of diamonds, uranium and gold greatly determines the pattern of Namibia’s exports,” Sherbourne said at the talk.
The European Union (EU) used to be Namibia’s most important export partner by value of exports. When the gold price started to rise, South Africa overtook the EU as the top export market.
Most gold mined in Namibia is exported to South Africa for refinement. Higher gold prices mean that the value of the exports to South Africa increased. Similarly, higher uranium prices in 2025 drove China to second place in Namibia’s export market rankings.
The European Union is the third largest and most diversified export destination, Sherbourne says. Unlike exports to China and South Africa, no single product accounts for more than 50% of Namibia’s exports to the European Union.
But even then, Erongo drives the economy. The largest export products are for fish, uranium and meat. In total, at least 72% of exports to the EU are produced in Erongo.
