Namibia keen on Africa trade
Business confidence up
Namibia prefers trade with African countries, while its peers on the continent continually look to Asia.
The Standard Bank Africa Trade Barometer has found that Namibia prefers trade with other African countries and has lauded efforts to connect the Port of Walvis Bay to major export markets.
The findings form part of the lender’s fourth report into trade patterns on the continent in a survey that includes Namibia, Angola, Ghana, Kenya, Mozambique, Nigeria, South Africa, Tanzania, Uganda and Zambia, which offers a comparative view of the enablers and challenges to facilitating trade across the 10 African markets of interest.
Namibia demonstrated a preference for intra-Africa trade, together with Tanzania and Angola, the barometer found.
“Countries like Namibia (75%), Tanzania (48%) and Angola (43%) demonstrated a strong preference for intra-African trade, which aligns with the broader trend of surveyed businesses prioritising quality, pricing and accessibility in their trading activities,” Standard Bank said.
Propel growth
Business confidence in Namibia also saw an increase driven by the growth of the mining sector, owing to the re-opening of Paladin’s Langer Heinrich mine and the granting of mining licences to prospective miners, Bannerman Energy and Deep Yellow.
“Namibia saw the second-highest increase in business confidence score amongst surveyed businesses, driven by the growth of industries such as mining. Namibia is growing its uranium sector by reinstating operations at the Langer Heinrich mine, closed in 2018 due to low prices, and granting two new mining licences to Australian firms Bannerman Energy and Deep Yellow,” Standard Bank said.
“These developments, which could significantly propel economic growth upon entering the construction phase, are poised to amplify uranium output and enhance the nation’s export earnings from the mineral,” the lender added.
Connecting trade routes
Standard Bank was further encouraged by road projects aimed at easing the passage of cargo from the Port of Walvis Bay onwards to Namibia’s export destinations.
“In Namibia, several key road infrastructure projects connecting trade routes from Walvis Bay to major cities are underway. These include road infrastructure to support the North-West Corridor through Namibia and the Okahandja project to upgrade the freeway between Swakopmund and Walvis Bay, the construction of which is scheduled to conclude in 2025,” Standard Bank said.
The developments will strengthen the link between port and road infrastructure along trade routes, helping to optimise the flow of goods and services, according to Standard Bank.
In general, surveyed businesses found it difficult to trade with the rest of the world.
“Namibia exhibited the most pronounced shift in perceived difficulty, with a significant increase from 23% to 50% over the same period. At the aggregate level, surveyed businesses primarily attributed their challenges to high transport costs (43%) and currency fluctuations (28%),” Standard Bank said.
Namibia’s ranking improved from fourth position to second, with 205 Namibian businesses surveyed.
The findings form part of the lender’s fourth report into trade patterns on the continent in a survey that includes Namibia, Angola, Ghana, Kenya, Mozambique, Nigeria, South Africa, Tanzania, Uganda and Zambia, which offers a comparative view of the enablers and challenges to facilitating trade across the 10 African markets of interest.
Namibia demonstrated a preference for intra-Africa trade, together with Tanzania and Angola, the barometer found.
“Countries like Namibia (75%), Tanzania (48%) and Angola (43%) demonstrated a strong preference for intra-African trade, which aligns with the broader trend of surveyed businesses prioritising quality, pricing and accessibility in their trading activities,” Standard Bank said.
Propel growth
Business confidence in Namibia also saw an increase driven by the growth of the mining sector, owing to the re-opening of Paladin’s Langer Heinrich mine and the granting of mining licences to prospective miners, Bannerman Energy and Deep Yellow.
“Namibia saw the second-highest increase in business confidence score amongst surveyed businesses, driven by the growth of industries such as mining. Namibia is growing its uranium sector by reinstating operations at the Langer Heinrich mine, closed in 2018 due to low prices, and granting two new mining licences to Australian firms Bannerman Energy and Deep Yellow,” Standard Bank said.
“These developments, which could significantly propel economic growth upon entering the construction phase, are poised to amplify uranium output and enhance the nation’s export earnings from the mineral,” the lender added.
Connecting trade routes
Standard Bank was further encouraged by road projects aimed at easing the passage of cargo from the Port of Walvis Bay onwards to Namibia’s export destinations.
“In Namibia, several key road infrastructure projects connecting trade routes from Walvis Bay to major cities are underway. These include road infrastructure to support the North-West Corridor through Namibia and the Okahandja project to upgrade the freeway between Swakopmund and Walvis Bay, the construction of which is scheduled to conclude in 2025,” Standard Bank said.
The developments will strengthen the link between port and road infrastructure along trade routes, helping to optimise the flow of goods and services, according to Standard Bank.
In general, surveyed businesses found it difficult to trade with the rest of the world.
“Namibia exhibited the most pronounced shift in perceived difficulty, with a significant increase from 23% to 50% over the same period. At the aggregate level, surveyed businesses primarily attributed their challenges to high transport costs (43%) and currency fluctuations (28%),” Standard Bank said.
Namibia’s ranking improved from fourth position to second, with 205 Namibian businesses surveyed.
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