CAPE TOWN: Imports from South Africa into Namibia increased by N$16,6 billion in the past three financial years. The widening trade deficit between the two countries by N$50,6 billion in the 2015 financial year with Namibia being at the losing end.
In 2013, Namibia imported goods worth N$45,4 billion compared to the N$62,1 billion worth of goods imported into the country in 2015. This translated to the N$16,6 billion increase in the past three years.
In 2014, imports from South Africa into Namibia were worth N$51,7 billion which was an increase of N$6,3 billion. In 2015, Namibia only exported goods worth N$11,4 billion to South Africa, an increase of N$3 billion compared to the amount recorded in 2014.
In addition, 2014 also saw the lowest worth of goods exported as only N$8,4 billion goods were exported to that country. Goods worth N$11,9 billion were exported in 2013, but in 2014 a decrease was experienced.
However, the goods imported kept on increasing which led to the trade deficit swelling. The highest balance of trade between Namibia and South Africa was recorded in 2015 as it increased by N$7,3 billion and was N$50,6 billion. In 2014 it was N$43,3 billion compared to the N$33,4 billion recorded in 2013.
Namibia is largely dependent on South Africa as most of her imports come from South Africa of which the Namibia Statistics Agency’s Trade Statistician, Sadick Chombo said if anything happens to South Africa, Namibia would also suffer hugely.
Due to the imports that have increased, Chombo said that the depreciating Rand against the US Dollar would have a huge impact on the prices of imports. “Imports have become more expensive but the exports will be cheaper. Namibia is highly dependent on South Africa and if South Africa encounters any problems, Namibia would suffer,” he said.
South Africa is the first country Namibia imports most of its goods from. China, Switzerland, Botswana and the Bahamas follow suit as the overall value of imports from these countries increased by 21,5% which was N$75,1 billion in 2015 compared to the N$61,8 billion seen in 2014.