Namibian exports constituted just 34.1% of GDP in the first quarter of 2024 marking the lowest share since the 31.7% recorded in the first quarter of 2022, a report released by Simonis Storm reveals.
Imports accounted for 61.5% of GDP in the first quarter of 2024.
“In the first quarter of 2024, Namibia’s exports of goods and services totalled N$20.2 billion, while imports amounted to N$36.4 billion, resulting in a trade deficit of N$16.2 billion. This deficit represents a notable increase from the N$10.2 billion deficit recorded during the same period in 2023,” the report says.
In real terms, exports declined by 17.3% y/y, primarily due to a reduction in intermediate goods. Conversely, imports grew by 4.1% y/y, driven by increases in intermediate, final, and capital goods. Both exports and imports experienced slower growth compared to the previous year.
In May 2024, Namibia’s exports amounted to N$9.4 billion with a volume of 268,508 tons. This represents a slight decrease from April 2024, when exports were N$9.5 billion and the volume was 285,327 tons. However, compared to May 2023, the data presents a mixed picture. Export values increased from N$9.2 billion to N$9.4 billion y/y, while export volumes dropped significantly from 326,663 tons to 268,508 tons. This trend suggests that Namibia may be benefiting from higher prices or a shift towards higher-value goods despite lower export volumes.
On the import side, Namibia recorded N$12.8 billion in imports with a volume of 469,666 tons in May 2024. This is a slight increase from April 2024, where imports were N$12.6 billion with a volume of 463,342 tons. Compared to May 2023, both import value and volume rose, with imports at N$12.0 billion and a volume of 468,221 tons.
Namibia’s trade balance continued to show a deficit, widening to N$3.3 billion in May 2024. This increase was driven by the rise in imports to N$12.8 billion, which was higher than both April 2024’s N$12.6 billion and May 2023’s N$12.0 billion. Despite a slight increase in the export bill, the substantial growth in imports overshadowed these gains, resulting in a significant trade deficit. The persistent trade deficit and fluctuating export volumes highlight the challenges Namibia faces in balancing its trade.
Namibia’s top five export commodities remained consistent in May 2024: precious stones (diamonds), fish, non-monetary gold, copper, and petroleum oils. On the import side, the main commodities were petroleum oils, nickel ores, precious stones (diamonds), motor vehicles for transporting goods, and medicaments. South Africa continues to be our main trade partner. South Africa continues to be Namibia’s primary trade partner.
As Namibia heads into colder months, the Namibia Statistics Agency (NSA) highlighted blankets as the commodity of the month for May, with imports totaling N$10.8 million. Of this, N$6.1 million came from South Africa, N$3.2 million from China, N$1.3 million from various countries, and N$0.2 million from the United States. Starting June 2024, the Oshikango-Santa Clara border post operates 24 hours a day. This strategic move aims to enhance cross-border trade, boost economic activities, and facilitate seamless movement for travelers and businesses between Namibia and Angola.
Other 24-hour border posts in Namibia include the Namibia-Zambia (Wenela) and Namibia-Botswana (Trans-Kalahari/Mamuno) border posts, both of which were inaugurated last year. During the period under review, goods worth N$51.0 million were exported, and goods worth N$23.0 million were imported through the Oshikango border post. Walvis Bay harbour remains the hub of trade activities, handling the most significant volume of exports and imports in the country.