Uranium top performer as July trade deficit widens

Namibia’s trade deficit for July widened to N$2,1 billion – up from N$689 million in June 2024.

This means the difference between the value of its imports and exports improved from N$3,7 billion recorded in July 2023.

According to analysts from Simonis Storm Securities, this is a year-on-year reduction of 43,8%, although it marks a month-on-month increase of 201,2%.

The analysts say the country’s trade activity amounted to N$22 billion, with exports primarily driven by three main products – uranium, which generated a trade surplus of N$2,5 billion, non-monetary gold, with a trade surplus of N$1,3 billion and fish, contributing N$1,2 billion.

China was Namibia’s main export destination, accounting for 27,6% of total exports, followed by South Africa at 21,4% and Zambia at 10,1%.

“Imports for the same period stood at N$12 billion, marking a decrease of 12,2% month on month, but an increase of 1% year on year with primary contributors being petroleum oils, which recorded a deficit of N$1,6 billion,” Simonis says.

This was followed by motor vehicles for the transportation of goods, with a deficit of N$564 million, and motor vehicles for the transportation of persons, which recorded a deficit of N$298 million, the analysts say.

South Africa and China were the main import sources contributing 42,1% and 12,2%, respectively, while the United Arab Emirates came third, contributing 7%, mainly petroleum oils, and Zambia provided 4,1%, largely in nickel ores and concentrates.

“It is interesting that the Bric countries (Brazil, Russia, India and China) collectively were the largest destination for Namibia’s exports, with a share of 28,2%, while the Southern African Customs Union (Sacu) came second on 27,2%, followed by the Organisation for Economic Cooperation and Development countries, which contributed 22,5%,” Simonis says.

The European Union and the Southern African Development Community, excluding Sacu, took the fourth and fifth positions, with shares of 16,2% and 15,7%, respectively.

According to Simonis, sea transport was a key channel for Namibia’s exports during this period, with a total export value of N$5,3 billion, although this marked a decline compared to the previous month.

Uranium and fish were the main commodities exported by sea.

In contrast, road transport recorded an increase in export value, reaching N$2,8 billion, largely driven by the export of petroleum oils, rotating electric plants and parts, alcoholic beverages and specialised machinery for certain industries.

On the import side, road transport led the way, bringing in goods worth roughly N$7 billion – an increase from the previous month.

This mode was particularly significant for importing motor vehicles, both for goods transport and special purposes. – matthew@namibian.com.na