Category: Trade

Analysis

• Namibia’s total export earnings declined by 24% for January 2022 when compared to December 2021. This was due to a decline in the exports of copper blisters, precious stones, inorganic chemical elements, fruits, and nuts
• On an annual basis, total exports earnings increased by 22%. This resulted from an increase in the exports earnings recorded for commodities such as copper blisters, uranium, non-monetary gold, and fish

• Namibia’s import bill dropped by 6.0% for January 2022 when compared to December 2021. This came as a result of a decline in the import products of ores and concentrates of precious metals, road motor vehicles, iron and steel bars
• On an annual basis, total imports increased by 24.9%. This was influenced by an increase in the importation of copper blisters, precious stones, fish, and non-monetary gold (See figure 1 below)

  Figure 1: Export and Import value (N$ million), January 2021 – January 2022

Figure 2: Trade Balance (January 2021 - January 2022)

Outlook

Namibia is still reliant on imports for the majority of goods and dependent on commodity exports. Prioritization of investments to improve the productivity and enhance value addition on domestic commodities and the facilitation of access to credit for businesses remains crucial to improve the country’s trade balance and narrow trade deficit.

Executive summary

• Namibia’s total exports earnings amounted to N$ 9.3 billion for December 2021 up from N$ 8.3 billion that was recorded in December 2020. (See figure 1 below)
• China remained the main export market for the country, absorbing 31.4% of all goods exported, followed by South Africa in the second place whose market share of Namibia’s exports with 14% of total exports.
• Imports bill amounted to N$11.7 billion for December 2021 up from N$ 8.6 billion that was recorded in December 2020. (See figure 1 below)
• Namibia sourced the majority of its imports mainly from South Africa, Zambia, D.R.C, China, and India for December 2021
• Namibia’s largest export and import commodity for December 2021 was copper blisters, accounting for 34.4% and 29.2% respectively. (See figures 3 & 4 below)
• The county’s trade balance stood at N$ 2.4 billion for December 2021, up from N$ 425 million recorded for December 2020. (See figure 2 below)
• COMESA economic region took up the largest percentage share of imports by economic region accounting for 32.9% followed by SACU, accounting for 32.7% and  MERCOSUR took up the least percentage share of exports of only 0.3%
• During the month of December 2021, the main mode of transport used for the majority of the products exported accounting for 44.7% was via sea and the majority of the products imported reached the country by road which accounted for 71.4% of total products imported.

Analysis

• Namibia’s total export earnings declined by 3.8% for December 2021 when compared to November 2021. This came as a result of a decline in the exports of uranium, precious stones, ores and concentrates of base metals, and non-monetary gold
• On an annual basis, total exports earnings increased by 14.1%. This was influenced by an increase in the exports earnings recorded for commodities such as copper blisters, uranium, and non-monetary gold as a result of a boost in trade flow
• Namibia’s import bill dropped by 9.0% for December 2021 when compared to November 2021.This was due to a decline in the import products of petroleum oils, other meat and edible offal, and motor vehicles
• On an annual basis, total imports increased by 36.2%. This was driven by an increase in the importation of copper blisters, ores and concentrates precious metals, copper ores and concentrates, motor vehicles, and rubber tyres (See figure 1 below)

Figure 1: Export and Import value (N$ million), December 2020 – December 2021

Figure 2: Trade Balance (December 2020 – December 2021)

Figure 3: Top 5 Import products % share of total imports, December 2021

Figure 4: Top 5 Export products % share of total imports, December 2021

Outlook

Minerals continues to dominate Namibia’s export and import basket with copper leading since 2018. Local value addition on export commodities is crucial to boost exports, create employment opportunities and help the economy grow. We anticipate slow growth in the country’s trade balance in the medium term. This is due to a lack of investments to boost local exports, negative external shocks that influence commodity prices and the continuous negative impact of the Covid-19 pandemic.

Executive summary

• Namibia’s total exports earnings amounted to N$ 7.2 billion for September 2021 down from N$ 8.9 billion recorded for the same period last year. (See figure 1 below)
• China remains the main export market for the country for September 2021, absorbing 34.6% of all goods exported ahead of South Africa in the second place whose market share of Namibia’s exports stood at 26.9% of total exports
• Imports bill amounted to N$10.3 billion for September 2021 up from N$ 10.5 billion that was recorded during the same period last year. (See figure 1 below)
• During the month of September 2021, Namibia sourced the majority of  imports mainly from South Africa, Zambia, D.R.C, India, and China
• Copper was Namibia’s largest export and import commodity for September 2021, accounting for 35.5% and 25.4% respectively. (See figure 3&4 below)
• The county’s trade balance stood at N$ 3.1 billion for September 2021, up from N$ 1.5 billion recorded for September 2020. (See figure 2 below)
• SACU economic region and BRIC took up the largest percentage share of exports by economic region accounting for 34.9% each followed by EU accounting for 10.1% and the COMESA took up the least percentage of exports of 8.4%
• The majority of the products exported during the month of September 2021 reached their destination using the sea as a mode of transport accounting for 44.1% and the majority of the imported products reached the country by road which accounted for 73.6% of total products imported

Analysis

• Namibia’s total export earnings decreased by 8.1% for September 2021 in relation to the previous month. This came as a result of a decline in the export of uranium or thorium ores and concentrates, fish, pearls and precious or semiprecious stones, unworked or worked and gold, non-monetary (excluding gold ores and concentrates) and the export of live animals
• On an annual basis total exports earnings declined by 19.7%. This was mainly attributed to a decline in the exports earnings recorded for copper, fish, and live animals. This was due to a negative impact of Covid-19 restrictions.
• Namibia’s import bill declined by 3.6% for September 2021 when compared to August 2021. This was influenced by an increase in the import of medicinal (pharmaceutical) products, ships, boats, copper, and inorganic chemicals
• On an annual basis total imports increased by 1.9% as a consequence of an increase in the importation of petroleum oils and fuels, precious or semiprecious stones (Diamond), tubes, and pipes.(See figure 1 below)

Figure 1: Export and Import value, (September 2020- September 2021)

Figure 2: Trade Balance (September 2020 - September 2021)

Figure 3: Top 5 Export products % share of total exports, Namibia (September 2021)

Figure 4: Top 5 Import products % share of total imports, Namibia (September 2021)

Outlook

Boosting exports is of utmost importance for the country’s economic growth. The implementation of aggressive vaccine rollouts remains essential to caution the negative impact of covid-19 on commodity prices. Additionally, there is a need to facilitate access to credit for export companies and investment in value addition for the main commodities that are exported. This will improve the country’s trade balance in the medium term.

Executive summary

• Namibia’s total exports earnings amounted to N$ 7.1 billion for August 2021 down from N$ 7.3 billion that was recorded for the same period last year. (See figure 1 below)
• China emerged as the main export market for the country for August 2021, absorbing 29.6% of all goods exported, ahead of South Africa in the second place whose market share of Namibia’s exports stood at 17.9% of total exports.
• Imports bill amounted to N$10 billion for August 2021 up from N$ 8.9 billion that was recorded during the same period last year. (See figure 1 below)
• During the month of August 2021 Namibia sourced the majority of  imports mainly from South Africa, Zambia, D.R.C, Oman, and China
• Copper was Namibia’s largest export and import commodity for August 2021, accounting for 34.6% and 22.2% respectively. (See figure 3&4 below)
• The county’s trade balance stood at N$ 2.9 billion for August 2021, up from N$ 1.3 billion recorded for August 2020. (See figure 2 below)
• SACU economic region took up the largest percentage share of exports by economic region accounting for 30.3% followed by BRIC, accounting for 29.7% and the EFTA took up the least percentage of exports of 0.2%
• The majority of the products exported during the month of August 2021 reached their destination using the sea as a mode of transport accounting for 56.6% and the majority of the imported products reached the country by road which accounted for 69.8% of total products imported

Analysis

• Namibia’s total export earnings increased by 41.5% for August 2021 in relation to the previous month. This came as a result of an increase in the export of copper, pearls , and precious or semiprecious stones, unworked or worked and gold, non-monetary (excluding gold ores and concentrates), and the export of ores and concentrates of  base metals
• On an annual basis total exports earnings declined by 6.2%. This was mainly attributed to a decline in the exports earnings recorded for pearls and precious or semiprecious stones, unworked or worked and uranium or thorium ores and concentrates. This was due to the negative impact of Covid-19 on global commodity prices
• Namibia’s import bill increased by 18.5% for August 2021 when compared to July 2021. This was influenced by an increase in the import of petroleum oils and fuels, copper, and the import of motor vehicles
• On an annual basis total imports increased by 12.1% as a consequence of an increase in the importation of petroleum oils and fuels, precious or semiprecious stones (Diamond), and motor vehicles. (See figure 1 below)

Figure 1: Export and Import value (N$), (August 2020- August 2021)

Figure 2: Trade Balance (August 2020 - August 2021)

Figure 3: Top 5 Export products % share of total exports, Namibia (August 2021)

Figure 4: Top 5 Import products % share of total imports, Namibia (August 2021)

Outlook

Given the current economic environment, aggressive vaccine rollouts to caution the negative impact of covid-19 on commodity prices and investment in value addition for the main commodities that Namibia exports will help to boost exports for Namibia in the short to medium term. This will improve the country’s trade balance and lead to economic growth.