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Exports stimulation needed to decrease trade deficit

Home Business Exports stimulation needed to decrease trade deficit

WINDHOEK – The Namibia Statistics Agency (NSA) yesterday revealed that during September 2013 Namibia’s total exports amounted to N$5.5 billion, while imports amounted to N$8 billion. This compared to the N$3.1 billion of total exports and N$5.7 billion of total imports in September 2012.

These figures resulted in a trade deficit of N$2.5 billion for September 2013, representing a slight decrease of 3.8 percent when compared to a deficit of N$2.6 billion during the previous month. “As an economist I am concerned about the deficit in the trade balance. If we want to grow at a higher level we really need to stimulate our exports,” commented the NSA’s Statistician General, Dr John Steytler.

During the period under review Namibia’s key export markets were South Africa, Botswana, Denmark and Angola, while imports were mainly sourced from South Africa, the Marshall Islands, China, Botswana and export processing zones. The NSA’s latest monthly trade statistics also confirm that Namibia continues to rely heavily on road and sea as the predominant modes of transport for both imports and exports.

Major exported products were precious stones (such as diamonds), ore, slag and ash, fish and zinc. Major imports on the other hand were ships, boats and floating infrastructure, vehicles, boiler machinery and electrical machinery.

Foreign trade statistics play an important roll in a nation’s economy because it measures values and quantities of goods that, by moving in or out of a country, add or subtract from a nation’s material stock of goods. Foreign trade statistics are also essential for the formulation of monetary, fiscal, commercial and regional integration policies.

Moreover, within the Southern African Customs Union (SACU) reliable import statistics are crucial when it comes to revenue sharing among member states. The latest figures from the NSA also show that SACU remained Namibia’s largest market for exports in September 2013, accounting for 38.7 percent of total exports. This is down from 41.6 percent when compared to September 2012. Overall, exports to SACU member states increased by 69 percent month-on-month and declined 67 percent year-on-year.

The NSA’s figures also show that the European Union was Namibia’s second largest market, accounting for 15 percent of total exports for September 2013, compared to 18.3 percent in the previous month and 17.9 percent in September 2012. The Southern African Development Community (SADC), excluding SACU, took third position, accounting for 12.4 percent of total exports.

By Edgar Brandt