Africa-Press – Namibia. DONALD MATTHYS
THE difference between what Namibia exports and imports has widened as the country in April recorded a net import difference of N$3,3 billion.
This is indicated in the latest trade statistics released by the Namibia Statistics Agency (NSA) yesterday.
The statistics bureau said the country’s trade deficit ballooned to N$3,3 billion in April.
A March 2022 revision shows that the deficit for that month is now N$619 million, and not N$2,8 billion as earlier reported.
Over the period April 2021 to April 2022, Namibia recorded a deficit averaging N$2,5 billion and only recorded a trade surplus in April 2021, according to the NSA.
The current N$3,3 billion deficit is mainly on the back of high imports which stood at N$8,8 billion, reflecting an increase from the N$6,2 billion recorded in April 2021.
Petroleum products took the largest share of 16,6% of all commodities imported, followed by inorganic chemical elements, sulphur and unroasted iron pyrites, and motor vehicles for the transportation of goods and medicaments.
“The petroleum products that were imported in April 2022 originated from India, Estonia and Malaysia, while most of the inorganic chemical elements came from DRC (the Democratic Republic of Congo), Morocco and South Africa. Sulphur and unroasted iron pyrites were mainly sourced from Kazakhstan and Russia, while motor vehicles for the transportation of goods were sourced from South Africa, Finland, and the United Kingdom. Medicines were imported from South Africa, India and Germany,” the statistics agency reports.
Meanwhile, the country’s exports remained modest in April 2022, decreasing by 36,4% to N$5,5 billion from N$8,7 billion in March.
In addition, when compared to N$6,5 billion recorded in April 2021, exports decreased by a notable 15,4%.
Simonis Storm Securities economist Theo Klein yesterday said the deficit was caused by major decreases in the value of exports in products like diamond, copper blisters, meat and civil engineering equipment.
“On the other hand, the rand depreciated by 7% during April 2022, which could have increased the value of imports,” Klein said.
Klein expects the deficit to improve going forward, mainly due to improved production from the mining and fisheries sector.
However, he warned that higher shipping costs as a result of global supply chain disruptions and a weaker rand exchange rate could inflate the value of imports above the value of exports.
“This remains a risk for the data to continue showing a deterioration in the trade balance,” Klein added.
Following these movements in both import and export flows, Namibia’s total merchandise trade decreased by 20,3% from its March 2022 level of N$18 billion, compared to the same month the previous year, when total trade increased by 13%.
Meanwhile, the statistics agency noted that a closer focus on imports from Tunisia showed that since the formation of the African Continental Free Trade Area in 2018 and its inception in 2021, Namibia’s trade notably increased with the import basket.
“In 2022, Namibia has imported goods worth N$470 million from Tunisia of which the basket mainly consisted of petroleum oils with a value of N$458 million, representing 97,5% followed by products of phosphorus compounds with a value of N$11 million and a share of 2,2%,” the agency added.
Furthermore, an analysis of the importation of cotton trousers and breeches, as the commodity of the month, display that in April 2022, Namibia imported trousers and breeches valued at N$10 million, most of them sourced from South Africa.
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