There was a notable change in Namibia’s top economic export destinations in July 2024 with the BRICS countries collectively emerging as the largest destination for Namibia’s exports, with a share of 28.2% of total exports, a Simonis Storm trade report released last week reveals.
The Southern African Customs Union (SACU) ranked second, accounting for 27.2% of Namibia’s exports, followed by the OECD countries, which contributed 22.5%. The European Union (EU) and the Southern African Development Community (SADC) excluding SACU took the fourth and fifth positions, with shares of 16.2% and 15.7%, respectively.
SACU retained its position as Namibia’s leading supplier of imports in July 2024, accounting for 42.9% of total imports. The BRIC countries followed in second place, making up 20.7% of all imports, primarily supplying petroleum oils and wheat. The OECD and the European Union (EU) ranked third and fourth, accounting for 20.0% and 12.5% of total imports, respectively.
In July 2024, China emerged as Namibia’s main export destination, accounting for 27.6% of total exports, followed by South Africa at 21.4%, and Zambia at 10.1%, according to the Namibia Statistics Agency (NSA). On the import side, the main sources were South Africa and China, with shares of 42.1% and 12.2%, respectively. The United Arab Emirates was the third largest import source, contributing 7.0% to Namibia’s total imports, mainly in the form of petroleum oils, while Zambia provided 4.1%, largely in nickel ores and concentrates.
Namibia’s trade activity amounted to N$22.0 billion in July, reflecting a decrease in both exports and imports compared to June 2024. The trade deficit widened to N$2.1 billion from N$689 million in June 2024. However, this was an improvement compared to the trade deficit of N$3.7 billion recorded in July 2023. This change represents a year-over-year reduction in the trade deficit of 43.8%, although it marks a month-over-month increase of 201.2%.
“During the month under review, Namibia’s export bill decreased to N$9.9 billion, a decline of 23.5% month-over-month (m/m) from the N$13.0 billion recorded in June 2024. However, it represented a yearover-year (y/y) increase of 21.2% compared to the N$8.2 billion registered in July 2023. The year-onyear growth in exports was primarily driven by three main products: Uranium, which generated a trade surplus of N$2.5 billion, non-monetary gold with a trade surplus of N$1.3 billion, and fish, contributing N$1.2 billion.
“Imports for the same period stood at N$12.0 billion, marking a decrease of 12.2% m/m but an increase of 1.0% y/y. The primary contributors to imports were petroleum oils, which recorded a deficit of N$1.6 billion. This was followed by motor vehicles for the transportation of goods, with a deficit of N$564 million, and motor vehicles for the transportation of persons, which recorded a deficit of N$298 million,” Simonis Storm said.
Sea transport was a key channel for Namibia’s exports during this period, with a total export value of N$5,315.7 million, although this marked a decline compared to the previous month. Uranium and fish were the main commodities exported by sea. In contrast, road transport experienced an increase in export value, reaching N$2,854.2 million, largely driven by the export of petroleum oils, rotating electric plants and parts, alcoholic beverages, and specialized machinery for certain industries. Air transport, while still important for high-value exports like gold and precious stones, saw a notable decline, with export values falling from N$3,581 million in June to N$1,802.8 million in July.
On the import side, road transport led the way, bringing in goods worth N$7,036.9 million, an increase from the previous month. This mode was particularly significant for importing motor vehicles, both for goods transport and special purposes. Sea imports however decreased to N$4,511.1 million in July 2024, which coincides with a slight increase in the Baltic Dry Index (BDI), averaging 1,925 in July, up slightly from 1,922 in June. The BDI, a key measure of global shipping costs, is indicative of modest shifts in sea freight rates, potentially contributing to the observed decrease in sea imports. Air imports experienced a slight increase to N$494.6 million, while inland waterways, though a smaller contributor, saw an import value increase to N$3.8 million.
“These trade patterns are closely influenced by global market trends. The Brent crude oil price averaged USD 83.9 per barrel in July. The fluctuations in oil prices, combined with the trends in the Baltic Dry Index—ranging from 1,922 in June to 1,716 in August—directly affect sea transport, especially for commodities like petroleum oils that rely heavily on maritime shipping. Additionally, with Brent crude oil prices showing a slight downward trend—from USD 83.9 per barrel in July to USD 78.9 in August— transportation costs might decrease somewhat, but the overall impact will depend on how these fluctuations balance against the shipping costs,” said Simonis Storm.