TRADE statistics for February 2020 show that South Africa is Namibia’s top export destination and its main source of imports.
This shows the country is still struggling to diversify its trading portfolio, with South Africa taking up 21,8% of exports and sending 43% of all Namibian imports through.
The February trade statistics bulletin, as released by the Namibia Statistics Agency (NSA), shows South Africa overtaking China as Namibia’s top destination for exports. China, who took second place, absorbed 14,3% of total exports – very low due to Covid-19. The Asian giant has been Namibia’s leading export destination due to its appetite for Namibian copper cathode and uranium.
During February 2020, Namibia’s exports were mostly destined for five countries: South Africa, China, Botswana, Spain and Canada.
Together, these five countries accounted for 59,3% of Namibian exports.
“The country’s exports basket remains to be dominated by minerals such as diamonds, gold, copper cathodes and ores (uranium), except for fish, which is the only non-mineral product in the top-five list of products exported,” the NSA says.
Namibia’s exports continued with a downward trend since December 2019 recording an export value of N$4,9 billion in February 2020 compared to N$6,3 billion in January 2020.
A year ago, the value of exports stood at N$6,9 billion.
Total imports, however, followed a rather opposite trend rising to N$8,2 billion in February 2020 from N$7,5 billion registered in January.
The contraction in exports was mainly induced by a decline in the export value of manufactured goods.
The trade balance, which compares the country’s trade in terms of earnings (exports) and expenditure (imports) with the rest of the world, shows a deteriorating picture as the country spends more money abroad than it receives.
“Trade balance amounted to a deficit of N$3,3 billion in February 2020, up from N$1,2 billion registered in the previous month,” said the NSA.
A year earlier the trade deficit stood at N$588 million.
At least 43% of import needs originated from South Africa, followed by Zambia at 13,4%. Other countries also sending goods to Namibia include Zambia, Peru, India, and the Democratic Republic of Congo.
Together these countries accounted for the largest share of Namibia’s total imports at 79,6%.
Top-five import byproducts in February 2020 were dominated by manufactured goods with a share of 26,1% of total imports, followed by mineral fuels, lubricants and related materials which accounted for 18,1%. The high import of manufactured goods is validated by the country’s inability to add value to its raw material as a result of exporting them as they are – mineral, timber, fish and livestock.
As a result the country is stuck with a non-expanding manufacturing sector.
Machinery and transport equipment ranked third with a relative share of 16,1%, whereas crude materials in the fourth position contributed 12,8%.
