by Ipumbu Sakaria
A good two weeks ago we released the 2015 Annual Trade Statistics Bulletin. What exactly does this mean and what is contained in that report?
The trade bulletin basically provides us with information on what Namibia imports and exports during a specific period. It also gives information on who we trade with and what means of transport we use for such imports and exports. In essence, trade statistics provide a very good insight into the structure of the economy of a country.
During the year 2015 Namibia recorded its biggest trade deficit for quite some time. A trade deficit occurs when a country imports more than what it exports in value. Our trade deficit for 2015 amounted to N$39.2 billion. Making sense of this means that we exported goods worth N$58.4 billion whilst importing goods worth N$97.6 billion in 2015; hence a trade deficit.
Of course, the main interest would be to know what exactly Namibia imports or exports, and in what value. Our export commodities in 2015 were dominated by diamonds, copper cathodes, fish, copper ore and zinc and articles thereof. Other significant exports included beverages, live animals as well as meat. Our import commodities were dominated by mineral fuels and oils, vehicles, boilers, electrical machinery and equipment as well as copper ore. Other imports included articles of iron or steel, vessels and copper cathodes.
In terms of value, Namibia’s exports were dominated by diamonds to the value of N$19.5 billion. Copper cathodes amounted to roughly N$8 billion whilst fish exports amounted to around N$7 billion. Copper ores with a value of N$5.6 billion and zinc and articles thereof worth N$1.9 billion, were the other significant imports. Export of live animals was worth around N$1.5 billion and meat amounted to around N$1.2 billion. Analyzing the export commodities makes us also understand our major export destinations which were Botswana, South Africa, Switzerland, Spain and Angola.
The goods we exported to Botswana were mainly diamonds. To South Africa we mainly exported diamonds as well, closely followed by live animals, fish as well as beverages and meat. One might wonder what we export to Switzerland; well a good 95 percent of that was copper cathodes and copper ores. Then there were a few diamonds as well, but not significant at all.
Spain, as most would know, is a country where we export our fish to. A good 93 percent of our exports to Spain is fish. To Angola we mostly export vehicles, electrical machinery and equipment, as well as boilers and furniture, bedding and mattresses. The majority of our exports take the route of the sea, air and road; in that order.
Our imports on the other hand, were mainly sourced through South Africa, China as well as Switzerland, Botswana and the Bahamas.
From South Africa we mainly import vehicles, mineral fuels and oils as well as boilers.
Our imports from China are dominated by vessels, boilers as well, and articles of iron or steel. Bahamas is listed because our main import from them in 2015 was vessels.
Now, in terms of the trade statistics for 2015, Namibia clearly imported more than what is exported and hence we say we had a trade deficit.
Ideally, one would want a trade balance meaning that the value of money you receive from exporting goods is the one used to import goods as well. In our reality where this is not the case, as a nation we dig into our reserves to fund the imports and hence the Bank of Namibia’s monetary policy often indicating the strain that luxury imported goods have on our reserves. All this and more information is available on our website.
• Iipumbu Sakaria is the Deputy Director for Strategic Communications at the NSA.