Nam’s trade with SA ails

NDAMA NAKASHOLE

Trade statistics from the Namibia Statistics Agency yesterday show that Namibia’s overall trade stood at N$46 billion (N$18.8 billion exports; N$27.1 billion imports) in the first quarter of 2018, compared to N$36.1 billion recorded in the first quarter of 2017 and N$42.2 billion estimated in the last quarter of 2017.

Namibia realised a trade deficit of N$8.3 billion in the first quarter of 2018, which is almost double the N$4.8 billion recorded in the first quarter of 2017. This is also higher than the N$5.5 billion observed in the fourth quarter of 2017.

The persistent trade deficits recorded in the past 20 quarters were mostly driven by Namibia’s high demand for high-value manufactured commodities and machinery from the rest of the world, while it exports mainly primary commodities that are of low value, with the exception of diamonds.

The country’s trade deficit for the first quarter of 2018 is higher than the average trade deficit over the past 20 quarters.

LOSING TOP SPOT

South Africa lost the top spot as importer of Namibian goods to China in the first quarter of 2018. Among the largest export partners, the highest growth rates were recorded with China (779% annual growth), Belgium (188%), Italy (110%) and Botswana (20%).

Exports to South Africa, which was Namibia’s largest export partner during the last quarter, grew by a mere 2%.

China now tops the list as the largest export destination by value, followed by South Africa, Belgium, Botswana and Italy.

Compared to the last quarter (fourth quarter of 2017), Namibian exports to South Africa dropped. Of all the top export destinations, only exports to South Africa and Botswana dropped quarter-to-quarter, with the biggest drop in value recorded in South African exports.

Overall, exports to those top export destinations grew by 86%.

Namibia’s top exports in terms of value in the first quarter of 2018 were copper cathodes, diamonds, jewellery and precious metals, fish, ores and concentrates, and zinc.

LOWER DEMAND FOR SA GOODS

While the overall imports increased by 3.2 billion (14%) in the first quarter of 2018, imports from South Africa weakened compared to both the first and last quarters of 2017.

Imports from Botswana fell too (38.5%) but the other three top import destinations realised an annual increase. Imports from the Bahamas grew by 14 612%, from Zambia by 259%, and from China by 73%.

Namibia’s top imports in terms of value in the first quarter of 2018 were vessels, mineral fuels and oils, boilers and vehicles.

REGION OVERTAKEN

The European Union (EU) became the largest export destination for Namibian products after overtaking the Southern African Customs Union (SACU) which has maintained dominance over a long time. Exports revenue from the EU rose by 79% compared to first quarter of last year. When compared to the previous quarter, exports to the EU rose by 40%. Furthermore, the EU absorbed 35% of Namibia’s total exports, the largest share relative to other economic regions. SACU dropped one place down to occupy the second position as leading export market for Namibian goods. Although its share in Namibia’s total import requirements fell in the first quarter of 2018, SACU still maintained its long term dominance as largest market for imports for Namibia.