CAPE TOWN: The Southern African Customs Union (SACU) kept its position as Namibia’s number one export market for the tenth year running with export revenue growing by 25 percent and accounting for N$24.4 billion in 2015 – up from N$19.5 billion recorded in 2014.
Exports from SACU accounted for 28 percent of total exports to selected regions last year, up from 25 percent obtained in 2014, according to the National Statistics Agency’s (NSA) latest annual trade statistics bulletin.
When it comes to imports, Namibia mostly imported its goods amounting to N$64.6 billion from the SACU region as well, with import expenditure from the region increasing by 19.7 percent compared to N$54 billion recorded a year ago.
The European Union (EU) moved one place up as Namibia’s second largest export market as a result of a 17 percent growth in export revenue from that market to N$9.4 billion in 2015, the NSA reported – a position held by Non-SACU-SADC countries in 2014. In addition, the EU accounted for 10.6 percent of total exports, slightly up from 10.2 percent compared to 2014.
In third position was the EFTA (Iceland, Liechtenstein, Norway and Switzer-land), which was the largest export destination for Namibia, with exports increasing by 13.8 percent to N$8.986 billion; from N$7.896 billion recorded a year earlier.
Export revenue from the Common Market for Eastern and Southern Africa (COMESA) also rose, from N$3.7 billion reported in 2014 to N$4.3 billion in 2015. Contrariwise, SADC-Non-SACU and BRIC’s (Brazil, Russia, India and China), combined export revenue dropped by 14 percent to account for N$9.6 billion, when compared to N$11.2 billion recorded in 2014.
However, the BRIC’s became the second largest major source of imports for Namibia, as domestic demand from that those countries rose by a staggering 60 percent to account for N$8.8 billion, compared to N$5.5 billion registered in 2014.
This resulted in the BRIC’s replacing the EU which moved to the third place with imports valued at N$6.5 billion in 2015.
This represents a 25.7 percent decline when compared to N$8.8 billion worth of imports recorded in 2014. BRIC’s accounted for 5.4 percent share of total imports to Namibia, down from 4.1 percent share it accounted for in the previous year (2014).
Namibia used sea transport for most of its export goods in 2015 (38 percent), but the overall value of goods exported via this transport mode dropped by 28 percent to account for N$22.1 billion, when compared to N$30.1 billion reported a year ago.
The value of goods transported using the road also dropped by 8 percent to account for N$17.7 billion in 2015, from N$19.1 billion recorded 2014. “Despite the decline in exports via sea and road, goods exported through air transport rose by 28 percent to account for N$18.5 billion, this is N$4.1 billion higher than what was reported a year ago. Additionally, exports via this mode accounted for 32 percent of total exports transported, down from 22 percent recorded in the past year,” read the NSA report.
All in all, Namibia recorded a negative trade balance valued at N$39.2 billion in 2015, which widened by 43 percent from N$27.4 billion reported in 2014.
Namibia’s key export markets during the year in review were mainly Botswana, South Africa, Switzerland, Spain and Angola, while its imports were mainly sourced from South Africa, China, Switzerland, Botswana and the Bahamas.
Its major exported commodities were diamonds, copper cathodes, fish, copper ores and zinc. Similarly, the aforementioned commodities including vehicles and boilers were the top re- exports. The major import commodities were mineral fuel and oils; vehicles, boilers, electrical machinery and equipment; and copper ores.
SACU is a customs union among five countries of Southern Africa, namely Botswana, Lesotho, Namibia, South Africa and Swaziland, which provides for a common external tariff and a common excise tariff to this common customs area.