Namibia pushes value addition to close trade deficit

Minister of international relations and trade Selma Ashipala-Musavyi has called for stronger collaboration with China to add value to Namibia’s natural resources and reduce its trade deficit.

Speaking at the Namibia–Shenzhen Networking Cocktail Reception in China on Monday, Ashipala-Musavyi said Namibia continues to export mostly raw materials while importing high-value finished goods, creating an imbalance in trade.

“While our exports have generally increased over the years, we still experience a negative trade deficit with China and many other countries. This deficit can only be closed if Namibia and her cooperation and trading partners add value to its resources,” she said.

China remains one of Namibia’s top trading partners, ranking second in imports and third in exports. Trade between the two countries has grown steadily, increasing from US$1.2 billion (about N$22 billion today) in 2019 to US$1.44 billion (about N$23.7 billion today) in 2024.

Ashipala-Musavyi said Namibia’s exports to China largely consist of resource-based products like uranium, copper, and fish, while imports include manufactured goods such as machinery, vehicles, textiles, and household items.

She noted that value addition and beneficiation of natural resources are central to the country’s economic strategy, aimed at creating jobs and improving living standards.

“We are rich in resources and offer opportunities across several key sectors, including agriculture, mining, energy, manufacturing, and tourism,” she said, urging Chinese businesses to invest in local processing and production.

She noted that the country is positioning itself as a regional manufacturing and logistics hub, supported by infrastructure development, renewable energy potential, and access to regional markets through trade agreements.

She added that the Port of Walvis Bay, expanded with Chinese technical assistance, can now handle large cargo volumes and ships.

“This positioning makes Namibia the preferred gateway to southern Africa, particularly for landlocked neighbours like Botswana, Zambia, and Zimbabwe. We have implemented measures to expedite trade, including harmonising and extending border operating hours to a 24-hour basis with our neighbours, and establishing various corridors to eliminate non-tariff trade barriers,” she said.

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