N$3.2 bln lost in export earnings during April

PHILLEPUS UUSIKU

Namibia lost about N$3.2 billion in export earnings during April 2022, according to the Namibia Statistics Agency (NSA) trade statistics. The value of exports stood at N$5.5 billion, down from N$8.7 billion recorded in March 2022. The value of imports was recorded at N$8.8 billion, a 5.2% decrease when compared to N$9.3 billion registered in March 2022. This led to Namibia’s trade deficit worsening to N$3.3 billion when compared N$619 million recorded in March 2022.

Over the period April 2021 to April 2022, Namibia only recorded a trade surplus in April 2021 of N$365 million. Diamonds was Namibia’s largest export commodity during the month under review accounting for 22.7% of total exports mainly destined to Botswana, Belgium and South Africa.

Diamonds were followed by fish, which accounted for 15.6% of total exports mostly destined to Spain, Zambia and South Africa. Uranium was ranked third on the list with a share of 11.9% destined mostly to France, and South Africa, NSA said.

On the other hand, petroleum oils were Namibia’s largest imports, followed by inorganic chemical elements in second position.

Sulphur and unroasted iron pyrites were ranked third after contributing 5.3% to total imports while motor vehicles for the transportation of goods and medicaments followed in the fourth and fifth position with contributions of 4.6% and 2.6%, respectively, NSA pointed out.

China

The slowdown in China’s economic activities could affect the Namibia economy in terms of trade. Simonis Storm (SS) in a detailed report analysed the possible effects of the slow down in activities on the Namibian economy.

“From an export perspective, China is Namibia’s second largest trading partner on average, where China’s share of Namibia’s exports has averaged 19.1% in the last 5 years. Any decrease in demand from China will therefore have an impact on Namibia’s exports, given that China alone accounts for about a fifth of total exports,” SS said.

Exports to China has been dominated by minerals and commodities (mainly uranium) and fish. Uranium mines are likely to experience the biggest negative impact, with immaterial effects on Namibian fish exports given that fish is a basic food item. Namibia mainly imports capital, consumer and intermediate goods, as well as clothing and textiles. With regards to SACU revenue, China is South Africa’s biggest importer and second biggest importer for Namibia. So, any major decrease in trade with China as a result of an economic slowdown in China will reduce SACU receipts and add pressure on public finances, SS added.

China’s supply chain disruptions will likely keep shipping costs high. This could lead to higher input costs to Namibian importing companies which might potentially be passed on to consumers in the form of higher prices.

Also, supply chain constraints remain a downside risk to global trade and negatively influence the quantity of exports that can take place in Namibia, SS said.[email protected]