New commodity sources buffer war impact

Uninterrupted exports of sulphur from Kazakhstan via a Russian port, are buffering the impact of the Russia-Ukraine war on Namport.The war is causing geopolitical tensions, unstable stock markets, hedging against the economic, financial and political aftermath, edgy commodity markets and skyrocketing crude oil prices, as well as increased inflation. Energy and commodity prices, including wheat and other grains, have surged, adding to inflationary pressures from supply chain disruptions and the rebound from the Covid-19 pandemic. Namibia can expect to see higher prices in bread, corn, baking flours, honey, beverages in aluminum cans, cheese, cooking oils and many other products. The sanctions on Russia will also have a substantial impact on the global economy and financial markets, with significant spillovers to other countries. Imports of wheat, ammonium nitrate and poultry originating from Russia will be impacted negatively, as importers are now sourcing from alternative or new suppliers.According to the Namport Qayside Bulletin, there are Namibian companies that no longer source wheat from Russia and are now pursuing new suppliers in Latvia and Germany, as alternative sources. As for ammonium nitrate, Namibian companies are now sourcing from Latvia. The next import shipment of 3 500 tons is expected to arrive at the Port of Walvis Bay on the 20 May.Zambia and the Democratic Republic of Congo (DRC) are the main consumers of poultry imported via Namport, which is mainly sourced from MHP, the largest frozen warehouse in Ukraine, which was recently bombed and destroyed by Russia. Poultry will now mainly be sourced and imported from the USA, Turkey and Canada. Zambia and the DRC’s sulphur imports are predominantly sourced from Kazakhstan, but loaded in the Russian Port of Ust-Luga. “There is currently no indication that sulphur imports originating from Kazakhstan will be negatively impacted by the sanctions on Russia and we are informed that there is currently a vessel waiting outside Russia’s Port of Ust-Luga to load sulphur, whereby 15 000 tons is to be discharged at the Port of Walvis Bay,” stated the bulletin. Some local mines predominantly source sulphur from the United Arabs Emirates. “With these interventions, no immediate negative impacts on imports are expected and hence no need to panic at this stage though the risk of a more severe outcome remains possible over the longer term. The rising fuel costs, however, have a direct impact on Namport’s cost of doing business, and also affects the competitiveness of Namibia’s transport corridors.

New commodity sources buffer war impact

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Republikein 2026-05-01

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New commodity sources buffer war impact

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Republikein 2026-05-01

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