Namibia’s export revenues increased by 16.3% in April 2024, from N$8.2 billion in March. The import bill for the month under review reduced by 1.3% from N$12.8 billion in the previous month. The foregoing resulted in a trade deficit of N$3.1 billion, compared to N$4.6 billion in March 2024.
A trade deficit occurs when a country’s imports exceed its exports. A trade deficit is also referred to as a negative balance of trade.
A budget deficit can lead to higher levels of borrowing, higher interest payments and low reinvestment, which will result in lower revenue during the following year. During his budget statement in February, finance minister Iipumbu Shiimi said overall, there is an estimate to realise a positive primary budget balance of 1.4% of gross domestic product (GDP) during FY2024/25.
“Subsequently, the budget deficit is projected at N$8.9 billion in nominal terms, equivalent to 3.2% of GDP in FY2024/25. In the interest of pursuing fiscal sustainability and debt stabilisation, we aim to maintain a primary surplus, and consequently keep the budget deficit below 4% of GDP over the medium-term expenditure framework,” he said at the time.
As released yesterday by the Namibia Statistics Agency (NSA), Namibia’s cumulative exports recorded N$35.4 billion in April 2024, higher when compared to N$33.3 billion registered during the same period of the previous year.
“On the import side, the cumulative value of trade for the month under study amounted to N$49.1 billion, higher by N$8.7 billion when compared to the same period of 2023,” stated the agency.
The monthly increase in export of goods was mainly reflected in uranium at first place with an increase of N$832 million, followed by salts, and peroxy salts which increased by N$563 million, petroleum oils increased by N$202 million, copper ores and concentrates increased by N$158 million, while ores and concentrates of base metals increased by N$151 million.
On the other hand, the monthly decrease in the import of goods was mainly reflected in petroleum oils, which decreased by N$650 million, motor-vehicles for the transport of goods decreased by N$233 million, automatic data-processing machines decreased by N$124 million, taps, cocks, valves and similar appliances for pipes decreased by N$105 million, while mechanical handling equipment decreased by N$105 million.
“In April 2024, the manufacturing industry continued to be the leading industry with the largest export of goods valued at N$5.2 billion, absorbing 55% of total exports, and products from the industry increased by N$283 million when compared to the previous month. The mining and quarrying industry came in second position with a share of 40.2% of the total exports in April 2024. Exported goods from this industry increased by N$1.1 billion when compared to the previous month,” reads the report.
Precious stones were Namibia’s largest exported commodity in April 2024, accounting for 17.3% of the total export of goods, and were predominantly destined for Botswana, the United Arab Emirates and Belgium. Uranium came second on the list, accounting for 13.4% of the total exports, and was mostly destined for China. Fish took the third position, contributing 13.2% and it was mainly destined for Spain, Zambia and Mozambique. -mndjavera@nepc.com.na