Africa-Press – Botswana. The trade balance plunged to its lowest in October as diamond exports fell significantly as part of the wider diamond industry that has been under pressure since the third quarter of 2023.
The recently released Statistics Botswana’s International Merchandise Trade statistics report for October shows that total exports fell by 31.6 percent to P2.7 billion, down from September’s P3.9 billion. The significant decline was on the back of diamond exports shrinking by 49.5 percent to P1.2 billion, contributing 46 percent to total exports. Diamonds usually account for over 80 percent of Botswana’s exports. In the period under review, copper contributed 25.2 percent (P682.6 million) to exports, while machinery and electrical equipment amounted to 9.8 percent (P266.5 million) of total exports.
The country’s imports were valued at P8.3 billion in October, a slight decrease of 1.2 percent from September’s P8.4 billion. Fuel imports contributed 21.6 percent (P1.8 billion), followed by food, beverages and tobacco brought in the country which accounted for 17.5 percent (P1.5 billion) of imports, and diamond imports came at 16.5 percent (P1.4 billion). Machinery and electrical equipment imports were at 12.7 percent (P150.2 million).
With imports higher than exports in October, the country registered a massive P5.6 billion trade deficit, the highest monthly deficit of the year that increased from September’s P4.5 billion deficit. The two monthly deficits come after Botswana registered eight consecutive monthly surpluses.
In the first quarter of the year, the trade balance showed a surplus of P1.6 billion, which picked up to P3.2 billion in the second quarter, and dropped to a P3.1 billion deficit in the third quarter. With monthly trade data for November and December yet to be released, it is uncertain whether the trade balance will be positive in the fourth quarter following the wide October deficit, and the fall in diamond exports that was noted in the last two months of the year.
The country’s total exports for 2022 amounted to P102.3 billion, up from 2021’s P82.5 billion. The imports value was P99.7 billion, an increase from 2021’ P93.1 billion. With strong export sales against the import receipts, the country ended 2022 with a trade surplus of P2.6 billion.
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