ANNUAL TRADE STATISTICS BULLETIN Statistics Agency P.O. Box 2133, FGI House, Post Street Mall, Windhoek, Namibia

Transcription

1 ANNUAL TRADE STATISTICS BULLETIN 2017 Namibia Statistics Agency P.O. Box 2133, FGI House, Post Street Mall, Windhoek, Namibia Tel: Fax:

2 Mission Statement Leveraging on partnerships and innovative technologies, to produce and disseminate relevant, quality, timely statistics and spatial data that are fit-for-purpose in accordance with international standards and best practice Vision Statement To be a high performance institution in quality statistics delivery Core Values Integrity Excellent Performance Accuracy Team Work Accountability Transparency 2 ANNUAL TRADE STATISTICS BULLETIN 2017

3 Table of Contents List of Figures...4 List of Tables...5 Preface...6 Introduction...7 Revisions...8 Key Developments...9 What left and entered the country (2017)... 9 Surplus by product group Deficit by product category Export destinations Import destinations Comparative analysis; 2017 and Trade balance Exports to key markets Imports from key markets Trade with the Exporting Processing Zone (EPZ) Top export products Fish exports Top re-exports products Top import products Trade by Economic Blocs...20 Exports Imports Trade by mode of transport...22 Exports Imports Conclusion...23 List of Terms and Definitions...24 Acronyms...25 Appendix...26 Table of Contents 3

4 List of Figures CHART 1: Trade by product group...9 CHART 2: Top 10 product group in which Namibia showed surpluses for CHART 3: Top 10 product group in which Namibia showed a deficits for CHART 4: Namibia's exports for CHART 5: Namibia's imports for CHART 6: Trade balance; 2008 to CHART 7: Key export destinations...13 CHART 8: Key import destinations...14 CHART 9: Top five export...16 CHART 10: fish exports...17 CHART 11: Top five re-exports...18 CHART 12: Top five imports...19 CHART 13: Export by economic blocs...20 CHART 14: Imports by economic bloc...21 CHART 15: Export by mode of transport...22 CHART 16: Imports by mode of transport ANNUAL TRADE STATISTICS BULLETIN 2017

5 List of Tables Table 1: Revisions for Table 2: EPZ Trade flows Table 3: Trade by f.o.b and c.i.f value Table 4: Top ten export destinations Table 5: Top ten re-export destinations Table 7: Top ten export by product group Table 8: Top ten re-export by product group Table 9: Top ten import by product group Table 10: Exports and imports of fish Table 11: Export products to key markets Table 13: Import products from key markets List of Tables 5

6 Preface Foreign trade statistics plays an important role in many economies and Namibia is no exception. It is an account of all transactions of merchandise between domestic residents and the rest of the world. The account measures the value and quantity of goods which add or subtract from the stock of material resources of a country by entering (imports) or leaving (exports) its economic territory. Therefore, trade statistics remains one of the major contributing indicators of the performance of Namibia s economy and its competitiveness on the world market. "Foreign trade statistics plays an important role in many economies and Namibia is no exception. Annual merchandise trade statistics are used extensively in the compilation of the country s national accounts and the balance of payments. Furthermore, these statistics are also used by various government institutions in preparation of trade negotiations in: a) defining and implementing anti-dumping policies b) macroeconomic and monetary policies and c) establishing new markets and evaluating the progress of existing markets. Statistics on international trade of merchandise are used comprehensively by decision makers at national, regional and international level, while investors use this information in market research and to define their commercial strategy. In the context of Namibia, the government s trade policy is aimed at developing, promoting and diversifying the country s exports as well as reducing its reliance on foreign goods. The Directorate of Customs and Excise in the Ministry of Finance is responsible for the collection of revenues. Computerization of procedures at Customs and Excise continues to enhance the timely dissemination and analysis of trade statistics through prompt transfer of captured trade data at points of entries nationwide to the Namibia Statistics Agency (NSA). Therefore, this report outlines the annual developments of Namibia s trade in merchandise with the rest of the world during the year 2017 compared to Alex Shimuafeni Statistician-General & CEO 6 ANNUAL TRADE STATISTICS BULLETIN 2017

7 Introduction The mandate of the Namibia Statistics Agency is to produce and disseminate relevant, quality and timely statistics. This includes statistics relating to imports and exports of merchandise. This report presents a summary of the trade statistics in terms of imports and exports of merchandise during the year Foreign trade statistics derived from records of trade flows across international borders are invaluable for the formulation of trade, commercial, fiscal and monetary policies of any country. The basic information for the compilation of trade statistics was collected and captured based on import and export declarations made by traders to Customs at various Customs offices across the country. Introduction 7

8 Revisions Revised statistics is due to availability of new information from the data source. Revisions on trade data are made every month when new monthly data file is uploaded into the database with additional information from previous months. In some months, revisions are negligible while in other months they are significant. Table 1: Revisions for 2016 Flow Value (N$ m) Revised 2016 Value in 2016 Difference Export 66,666 70,854-4,188 Import 96, ,675-4,013 Trade balance -29,996-29, The table above presents revisions made on exports and imports values for 2016, from N$70,854 million to N$66,666 million and from N$100,675 million to N$96,662 million respectively. The revisions on exports emanated from the category of diamond; gold and; precious metals, whereas animal fodder was the primary source of revisions made to total imports, these revisions resulted in the deficit widening to N$29,996 million from N$29,821 million reported earlier. 8 ANNUAL TRADE STATISTICS BULLETIN 2017

9 Key Developments What left and entered the country (2017) The chart below shows what type of products entered and left the borders of Namibia during the year Namibia s total exports amounted to N$63,545 million whereas imports totalled N$87,994 million during the reporting period. CHART 1: Trade by product group The majority of Namibia s trade with the rest of the world (ROW) were clustered around a few specific commodity categories which make up the bulk of the value of Namibia s exports and imports. Large exports for Namibia were reflected in the category of live animals, fish and crustaceans; ores (incl. uranium, copper, zinc, lead etc.) was also exported in large amounts. Furthermore, large amounts of commodities under the category of diamond, gold and precious metals; copper blisters, zinc and articles thereof; as well as the category of ships, boats and floating structures left the shores of the Namibia (Chart 1). Namibia imported large amount of items under the category of ores (mostly copper). Mineral fuels and oils is another large import category for Namibia in Additionally, large quantities of commodities under the category of diamond, gold and precious metals; articles of iron or steel; copper blisters, boilers; electrical machinery and equipment were imported into the country. Large amounts of imported copper blisters resulted in equally large amounts of exports as this commodity is re-exported by Namibia. Key Developments 9

10 Surplus by product group CHART 2: Top 10 product group in which Namibia showed surpluses for 2017 The chart above shows commodity groupings in which Namibia recorded significant trade surpluses (a surplus is where Namibia s export of a product group is more than its import of the same product group). It is not a surprise for product groupings such as diamond, gold and precious metals; fish and crustaceans; zinc and articles thereof; live animals; and copper blisters to register substantial amounts of trade surpluses as Namibia has been a net-exporter of these products over the years. Deficit by product category The chart below illustrates the top ten commodity groupings in which Namibia recorded trade deficits (trade deficit is when Namibia is importing more of the product group than it is exporting the same product group). CHART 3: Top 10 product group in which Namibia showed a deficits for 2017 It is not surprising that trade deficits were recorded for most product groupings including mineral fuels and oils; vehicles, boilers, electrical machinery and equipment; articles of iron or steel; pharmaceutical products; plastics and articles thereof; cosmetics and toiletries; and clothing and accessories, knitted or crocheted. Namibia does not have oil reserves, thus, it fully depends on imports for all its fuel needs. Additionally, the country s small manufacturing base automatically makes it a net importer of manufactured product. 10 ANNUAL TRADE STATISTICS BULLETIN 2017

11 Export destinations Next is an overview of Namibia s top ten export destinations and top ten import destinations. Essentially, where is the bulk of products Namibia is exporting going to and where is the bulk of products Namibia is importing coming from? The charts below provide an insight to these questions. CHART 4: Namibia's exports for 2017 The chart above presents the contributions made by each country to the total of the top ten export destinations as well as the contributions of these countries to Namibia s total exports. South Africa contributed 30 percent to the total of the top ten export destinations, but it made up 24 percent of Namibia s total exports for Botswana contributed 13 percent of Namibia s total exports, with Switzerland at 10 percent while China, Belgium and Spain contributed 5 percent each to Namibia s total exports. Import destinations The chart below shows the top ten countries from where Namibia imported products. Furthermore, it represent countries and the contributions made by each country to the total of the top ten countries as well as each country s contributions to the total imports into Namibia. As with exports, South Africa accounted for the largest share with 64 percent of the total of the top ten countries and 56 percent of total imports, Bulgaria made up 7 percent, Botswana 6 percent and China and Zambia contributing 5 percent each to Namibia s total imports. CHART 5: Namibia's imports for 2017 Key Developments 11

12 Comparative analysis; 2017 and 2016 Trade balance Namibia continued to record unfavorable trade balance, with 2017 recording a deficit amounting to N$24,449 million. In 2017, the country spent N$24,449 million more on imported goods than what it received from exporting goods to the rest of the world. By comparison, the N$24,449 million deficit is equivalent to five months in which Namibia imported goods and exported absolutely nothing. The 2017 deficit narrowed by 18 percent, this is a second consecutive decline after recording a 27 percent decline in The deficit plunged to N$24,449 million compared to a revised figure of last year it stood at N$ million (Chart 1). The improvement in the deficit was attributed largely to weakening expenditure on imports. The overall import bill fell by 9 percent and export declined by 5 percent. CHART 6: Trade balance; 2008 to 2017 Namibia s trade balance over the ten year period, 2008 to 2017 averaged to a deficit of N$16,609 million, reaching an all-time high with a surplus of N$1,786 million in 2008 and a record low with a deficit of N$41,029 million in In 2017, the largest deficits were recorded with South Africa (N$34,031 million), Bulgaria (N$5,816 million), Zambia (N$1,715 million), Peru (N$1,551 million), India (N$1,549 million) and China (N$1,234 million). The largest surpluses were recorded with Switzerland (N$6,225 million), Belgium (N$2,968 million), Botswana (N$2,957 million), Spain (N$2,533 billion), France (N$1,960 million) and Norway (N$1,703 million). 12 ANNUAL TRADE STATISTICS BULLETIN 2017

13 Exports to key markets Namibia s export market was dominated by South Africa, Botswana, Switzerland, China and Belgium as (Chart 7). These above indicated countries absorbed N$36,545 million (58 percent) of total (N$63,545 million) domestic exports. Despite their dominance, exports to these markets declined by 7 percent after recording N$39,339 million a year earlier. Namibia exported the most to South Africa, making up 24 percent of total exports, with Botswana coming in a distant second place with 13 percent of total exports. Switzerland, China and Belgium followed with 5 percent each of total exports (Appendix, Table 4). CHART 7: Key export destinations The recent downturn in exports resulted from falling external demand by Switzerland and Botswana. Exports to Switzerland stood at N$6,557 million, representing the largest decline of 51 percent, after recording N$13,327 million a year ago. To Botswana, export plunged by 16 percent to register N$8,406 million from N$9,972 million a year earlier. The decline to Switzerland was mostly influenced by ores, whereas the category of diamond, gold and precious metals was responsible for a lower export value to Botswana. Exports to other countries outside the top five listed markets also weakened. The most decline was recorded with Angola (47 percent), Zambia (44 percent), Norway (21 percent) and USA and Italy falling by 3 percent each. In spite of weakening exports to the aforementioned countries, exports to China, Belgium and South Africa strengthened, with Belgium accounting for the largest growth of 44 percent, China with 38 percent and South Africa with 32 percent. The increased exports to Belgium was attributed to higher values of ores (N$196 million), while to China, large values of ores (N$1,790 million) and zinc (N$1,002 million) led the rise of exports to that country. Further to this, large exports to South Africa was reflected in the value of live animals which grew by N$1,470 million (146 percent) from N$1,007 million recorded a year ago. Exports to South Africa of fish and crustaceans also grew by N$388 million (38 percent) to N$1,402 million after recording N$1,014 million in Then exports of diamond, gold and precious metals to South Africa grew by N$1,255 million (28 percent) to N$5,777 million compared to N$4,522 million registered during the previous year. Imports from key markets Namibia s imports remained high, but declined by N$8,668 million (9 percent) to N$87,994 million compared to N$96,662 million recorded in the preceding year. Namibia mostly imported from South Africa with 56 percent of Namibia s total imports, Belgium with 7 percent and Botswana with 6 percent. China and Zambia contributed 5 percent each to total domestic imports as shown in Chart 8. Yet, imports from these markets combined weakened, falling by N$1,185 million (2 percent) to N$69,105 million from N$70,289 million observed in The recent downturn in imports was attributed largely to weakening domestic demand from the country s largest import markets such as Botswana and South Africa, with imports from Botswana dropping by N$1,203 million (18 percent) to N$5,449 million, after recording N$6,652 million a year earlier. The decline in imports from Botswana was mostly reflected in the value of vehicles, machinery and electrical appliances and; the category of diamond, gold and precious metals which declined by 52 percent, 35 percent and 17 percent respectively. Moreover, although Namibia depends largely on South Africa for imports, imports from that country dropped by 13 percent to register N$49,052 million, from N$56,082 million recorded a year earlier. The decline in imports from RSA was mainly pronounced in mineral fuels and oils (34 percent), vehicles (21 percent), machinery and mechanical appliances (15 percent) and articles of iron or steel (12 percent). Moreover, imports from India, Germany and the USA worsened, falling by 16 percent, 8 percent and 6 percent respectively (Annexure Table 6). Comparative analysis; 2017 and

14 CHART 8: Key import destinations Despite falling imports from Botswana and South Africa, imports from Bulgaria, China and Zambia rose. The largest growth was reflected in the value of imports from Bulgaria, mostly due to copper ores rising to N$5,790 million from N$577 million a year earlier. Imports from China grew by 59 percent to register N$4,567 million, from N$2,875 million recorded in the previous year, on account of articles of iron or steel which rose by 167percent, machinery and mechanical appliances rose by 71 percent while electrical machinery and equipment from China grew by 30 percent. The growth (4 percent) observed in imports from Zambia was mostly pronounced in the value of tobacco and animal fodder which grew by 643 percent and 61 percent respectively (Annexure Table 13). Additionally, imports from some of Namibia s major partners (not shown in Chart 8) improved, with imports from the United Arab Emirates rising by 86 percent and Peru increasing by 26 percent (Annexure Table 6). 14 ANNUAL TRADE STATISTICS BULLETIN 2017

15 Trade with the Exporting Processing Zone (EPZ) The trade flow between Namibia and the Export Processing Zone (EPZ) is mostly dominated by exports, which amounted to N$5,327 million in 2017 (Table 2) which is equivalent to 92 percent of total trade (exports plus imports) between Namibia and the EPZ, whereas imports made up the remaining 8 percent of total trade. Large exports to the EPZ was mostly due to a high value of diamond, gold and precious metals which rose by N$770 million (18 percent) to N$5,120 million, from N$4,350 million recorded in The N$5,120 million is equivalent to 96 percent of total exports, lower than 100 percent contribution made a year ago. Ores made up the remaining 4 percent of total exports to the EPZ. Table 2: EPZ Trade flows Commodities Exports Diamond, gold and precious metals 5,120 96% 4, % 18% Ores 205 4% - 0% - Zinc and articles thereof 1 0% - 0% - Vehicles 1 0% - 0% - Machinery and mechanical appliances 0 0% 3 0% -92% Total 5, % 4, % 22% Commodities Imports Diamond, gold and precious metals % 1,310 94% -82% Inorganic chemicals compounds % 88 6% 146% Electrical machinery and equipment 12 2% 0 0% % Total % 1, % -67% Diamond, gold and precious metals emerged as the most imported commodity into Namibia from the EPZ, making up 51 percent of total imports from the EPZ, followed by inorganic chemical compounds with 47 percent. Electrical machinery and equipment only contributed 2 percent to the domestic total imports from the EPZ. The overall imports from the EPZ to Namibia receded significantly, falling by N$936 million (67 percent) to N$462 million after recording N$1,398 million a year earlier. The recent decline in imports was primarily owed to diamond, gold and precious metals which dropped by N$1,076 million, this is equivalent to 82 percent decline (Table 2). Comparative analysis; 2017 and

16 Top export products Namibia mostly exported items in the category of diamonds, gold and precious metals; fish and crustaceans; ores, copper blisters, zinc and articles thereof as shown in Chart 9. The exports of these commodities, however, combined weakened, dropping by N$2,368 million (5 percent) to record N$46,218 million, down from N$48,586 million observed a year earlier, thus, accounting for 73 percent of total exports (N$63,545 million), alike the contribution made a year earlier. The recent decline in exports was led by ores and copper blisters, with the strongest decline reflected by ores falling by 35 percent to register N$8,082 million, after recording N$12,413 million in the preceding year. In addition, coper blisters fell by N$253 million (4 percent) to N$5,434 million compared to N$5,687 million recorded in CHART 9: Top five export Noticeable improvement was observed in exports of diamond, gold and precious metals; fish and crustaceans and; Zinc and articles thereof. Exports of zinc and articles thereof increased the most with 19 percent, registering N$2,919 million, up from N$2,461 million in 2016, following a once off shipment to China. The most dominant export category: diamond, gold and precious metals rose by N$1,637 million (9 percent) to N$20,824 million compared to N$19,186 million recorded a year ago, this resulted from higher demand from UAE (162 percent), Israel (79 percent), South Africa and USA (28 percent) each. Fish and crustaceans, the only food item among minerals and the second largest export product only increased by 1 percent. (See section below for further analysis on fish exports). 16 ANNUAL TRADE STATISTICS BULLETIN 2017

17 Fish exports Namibia is a net fish exporting country. Therefore, fish remains the country s number one export revenue earner besides minerals (diamond, gold and precious metals). The category of Fish and crustaceans is among the top five major export commodities in terms of value (Chart 9). Furthermore, Chart 10 below postulate an upward trend of fish exports over a ten year period, from 2008 to Over the reference period, 2008 recorded the largest growth of 33 percent, followed by a 25 percent growth of 2016, 23 percent in 2013, 19 percent in 2009 and 12 percent in 2012, whereas growth in 2014 was negligible. However, slight declines in fish exports were recorded in two consecutive years, 2010 and 2011 in which the declines were estimated at 3 percent and 2 percent, respectively. CHART 10: fish exports In 2017, fish exports only grew by 1 percent, this growth resulted from high external demand from South Africa, rising by 38 percent, France by 22 percent, Italy by 17 percent and DRC increasing by 13 percent. The 2017 slow growth in fish exports can also be attributed to poor domestic production coupled with weak external demand from the country s largest importers of fish, such as Mozambique which fell by 55 percent, Portugal 28 percent, Zambia 12 percent and Italy Namibia s largest importer of fish, fell by 1 percent. On average, Namibia s export of fish and crustaceans stood at N$6,529 million over the period 2008 to 2017, reaching an all-time high of N$8,960 million in 2017 and a record low of N$4,580 million, below average in Comparative analysis; 2017 and

18 Top re-exports products The product group diamond, gold and precious metals is the largest contributors to Namibia s re-exports, with 24 percent of total re-exports, followed by copper blisters with 18 percent, ores with 13 percent. Ships, boats and floating structures and; zinc and articles thereof makes up 12 percent and 7 percent respectively of the country s total re-exports. The overall re-exports, however, dropped by N$3,699 million or 14 percent to N$23,097 million after recording N$26,796 million in the preceding year. The recent downturn were mostly reflected in the value of ores; ships, boats and floating structures and; copper blisters. The most decline was recorded by ores tumbling by 64 percent, then the category of ships, boats and floating structures dropping by 19 percent and copper blisters inching down by 4 percent (Chart 11). Moreover, articles of iron or steel also weakened (Annexure Table 8). Further to this, the contribution to Namibia s total re-export by the top five reexports as indicated in Chart 11 below declined, accounting for a share of 73 percent, down from 76 percent recorded in the preceding year. CHART 11: Top five re-exports Despite the decline experienced in some product categories, re-exports of diamond, gold and precious metals and; zinc and articles thereof advanced, with diamond, gold and precious metals rising by 16 percent to register N$5,467 million after recording N$4,729 million in the preceding year. Re-exports of zinc and articles thereof stood at N$1,548 million compared to N$0.48 million observed in the previous year. This resulted from high demand of this product group by China, Italy, Belgium, UAE and Nigeria. 18 ANNUAL TRADE STATISTICS BULLETIN 2017

19 Top import products Namibia mostly imported mineral fuel and oils; vehicles, machinery and mechanical appliances; ores and; diamond, gold and precious metals (Chart 12). The aforementioned commodities combined accounted for 43 percent of Namibia s total imports, 1 percent more than 42 percent contribution made in the previous year. Mineral fuels and oils is the largest contributor to Namibia overall imports, accounting for 10 percent of the country s total imports, followed by vehicle; machinery and mechanical appliances and; ores contributing 9 percent each to Namibia s total imports (Appendix, Table 9). Whereas diamond, gold and precious metals contributed 6 percent to domestic imports. Overall imports fell by N$8,668 million (9 percent) to N$87,994 million after recording N$96,662 million a year earlier. The fall was mostly pronounced in the value of mineral fuels and oils which dropped by 28 percent, then diamond, gold and precious metals falling by 19 percent, with vehicles falling by 11 percent, while a 7 percent drop was observed for machinery and mechanical appliances. Further to this, copper blisters declined by 6 percent whereas plastic and articles thereof and; beverages, spirits and vinegar dropped by 3 percent each (Appendix, Table 9). The decline in overall imports follows some economic headwinds experienced by the country in This was further manifested by the decline in importation of vehicles and; machinery and mechanical appliances. These commodities depends heavily on mineral fuels and oils, thus, their decline can highly be linked to that of mineral fuels and oils. CHART 12: Top five imports Even though overall imports declined, mostly as a result of four of the top five imports products, importation of ores rose sharply, as indicated in Chart 12. Ores rose by 139 percent (N$4,439 million) to register N$7,624 million compared to N$3,185 million listed a year ago, as domestic demand for copper ores rose. Copper ores is a primarily used as an input in manufacturing copper blisters, mostly exported for further processing, however, the large imports (N$7,624 million) of ores did not correlate to the exports (5,434 million) of copper blisters. Comparative analysis; 2017 and

20 Trade by Economic Blocs Exports In terms of economic blocs, Namibia mostly exported to SACU, EU, EFTA, SADC-NON-SACU, COMESA and BRIC (Chart 13). SACU is by far the biggest export market for the domestic economy, with 39 percent contribution to Namibia s total exports. Most exports to SACU are spread amongst member states, South Africa and Botswana, with 64 percent and 36 percent respectively. Exports to SACU rose by N$2,065 million (10 percent) to N$23,444 million from N$21,379 million observed in the previous year. The EU was second in ranking, as the largest export destinations for Namibia, with a contribution of 24 percent to the country s total exports. Belgium and Spain are the largest contributors to Namibia s total exports to the EU, with 23 percent and 22 percent of exports to the EU destined to these respective member states. Italy and France makes up 19 percent and 16 percent respectively of Namibia s exports to the EU. Exports to the EU rose by N$1,128 million to N$14,081 million after recording N$12,952 million a year ago. EFTA followed in a distant third place, absorbing N$8,667 million of Namibia s total exports, down from N$15,543 million observed during the preceding year, representing a decline of 44 percent (Chart 13). Subsequently, EFTA s contribution to the country s total exports accounted for 14 percent of domestic exports, down from the 23 percent contribution made last year. The recent decline in exports to EFTA was attributed to weakening demand for domestic goods by Switzerland and Norway whose absorption of domestic goods fell by 51 percent and 21 percent respectively. CHART 13: Export by economic blocs SADC-NON-SACU ranked fourth as Namibia s preferred export destination. This market absorbed N$5,439 million of Namibia s total exports, after recording N$8,137 million in 2016 representing a decline of 33 percent (Chart 13). Further to this, SADC- NON-SACU s contribution to the country s overall exports stood at 9 percent, down from 12 percent accounted for a year earlier. The most contributors to weakening exports to this bloc was Mozambique, with a decline of 56 percent, coming in second place was Angola falling by 47 percent and Zambia, with 44 percent drop. COMESA and BRIC contributed significantly to Namibia s total exports, with COMESA contributing 7 percent to the country s total exports and BRIC accounting for 6 percent. Exports to BRIC rose by 33 percent, meanwhile, exports to COMESA dropped by 28 percent (Chart 13). 20 ANNUAL TRADE STATISTICS BULLETIN 2017

21 Imports Namibia imports showed the similar trend to that of exports mostly importing from SACU, EU, BRIC, COMESA, SADC- NON-SACU and EFTA, (Chart 14). SACU is by far the largest contributors to Namibia s imports, in spite of this, imports from SACU deteriorated, falling by N$8,241 million (13 percent) to N$54,779 million compared to N$63,020 million recorded in the previous year, bringing SACU s contribution to Namibia s total imports to 66 percent, down from 72 percent contribution made in the previous year. The largest suppliers of imports to Namibia from SACU were South Africa and Botswana accounting for 90 percent and 10 percent respectively. The EU was the second most important source of imports for Namibia, with imports from this market rising by N$4,901 million (76 percent) to N$11,391 million compared to N$6,490 million observed in the preceding year. Subsequently, the EU s contribution to Namibia s imports stood at 14 percent, up from 7 percent contribution made a year earlier. Bulgaria is by far the largest contributor to Namibia s imports from the EU, with 51 percent while Germany and Italy made up 11 percent and 10 percent respectively. COMESA ranked fourth as Namibia s preferred import destination, however, imports to Namibia from this market dropped by N$68 million, a mere 1 percent decline to N$4,747 million compared to N$4,814 recorded in the preceding year. The local economy absorbed 6 percent of its overall imports requirements from COMESA, up when compared to 5 percent observed a year earlier. Zambia is way far the largest contributor to domestic imports from COMESA, with 89 percent of total imports from this market coming from Zambia. Swaziland and Mauritius made up 6 percent and 2 percent respectively. Additionally, SADC-NON-SACU and EFTA markets also contributed immensely to Namibia s import needs, although imports from these markets weakened, with the largest decline of 88 percent from EFTA and 3 percent drop from SADC-NON-SACU. CHART 14: Imports by economic bloc BRIC was the third largest supplier of imports to the local economy, with imports from this market growing by N$1,402 million (25 percent) to N$7,122 million after recording N$5,719 million a year ago. Imports from BRIC accounted for 9 percent down from 6 percent accounted for in the preceding year. Brazil is the largest contributor to Namibia s imports from that market, with 686 percent of imports from BRIC coming from Brazil whereas China contributed 59 percent of imports from BRIC into the domestic economy. Trade by Economic Blocs 21

22 Trade by mode of transport Exports In 2017, goods worth N$27,707 left Namibia s borders via sea an equivalent to 44 percent of the value of all goods exported from Namibia to the rest of the world during the period under review. Despite this, exports via sea dropped by 15 percent (N$4,983 million) when compared to N$32,690 million recorded in Air transportation ranked second as the most used means of transporting exports from the borders of Namibia. Thus, exports by air rose by N$1,501 million (8 percent) to N$21,271 million after recording N$19,770 million in the preceding year. Additionally, exports by air accounted for 33 percent of the total value of all goods exported, up from 30 percent accounted for in the previous year. CHART 15: Export by mode of transport Imports Most goods imported to Namibia were transported by means of road, however, imports by road weakened, falling by 8 percent to register N$54,852 million after recording N$59,918 million in the preceding year. The import value in 2017 was equivalent to 62 percent of the total value of all goods imported to Namibia, this is similar to its contribution in Maritime transportation also played a vital role in transporting import goods to Namibia that was evident in the overall value of imports by sea. The value imports by sea, however, weakened, falling by 8 percent to register N$27,674 million compared to N$30, 231 million recorded in the previous year. The N$27,674 million registered in 2017 equates to 31 percent of the value of all imported goods to Namibia, which is similar to the 31 percent accounted for in the preceding year. CHART 16: Imports by mode of transport Furthermore, exports via road transport advanced, inching up by 3 percent to register N$14,467 million, (Chart 15). That equates to 23 percent of the value of all goods exported by Namibia to the rest of the world. When compared to the previous year, exports by road was down to N$14,110 million, equivalent to 21 percent of total exports in Air transport was the third most used means of transport preferred by traders for delivering imports to Namibian shores. Despite this, imports by air fell by 14 percent (N$859 million) to N$5,371 million. This amounts to 6 percent of the total value of all goods imports to Namibia, which is similar to its contribution in the previous year. 22 ANNUAL TRADE STATISTICS BULLETIN 2017

23 Conclusion During the period of review, Namibia s overall exports amounted to N$63,545 million and imports stood at N$87,994, which resulted in a trade deficit amounting to N$24,449 million. The deficit narrowed by N$5,547 million (18 percent) compared to N$29,996 million recorded in the previous year. Namibia mostly exported to South Africa, Botswana, Switzerland, China and Belgium, which absorbed a combined 58 percent of the value of all goods exported by Namibia. On the other hand, the domestic economy heavily relied on South Africa, Bulgaria, Botswana, China and Zambia for about 79 percent of its import needs. Exports were mostly dominated by categories of diamonds, gold and precious metals; fish and crustaceans; ores; copper blisters and; zinc and articles thereof, accounting for 73 percent of the country s total exports to the ROW. Equally, the aforementioned commodities excluding fish, but including ships, boats and floating structures topped the list of re-exports. On the other hand, imports were mostly led by mineral fuel and oils; vehicles; machinery and mechanical appliances; ores and; diamond, gold and precious metals which together contributed 43 percent of total exports. In relation to regional groupings, Namibia s exports were largely absorbed by SACU, the oldest customs union in the world, with 39 percent of total exports, while a 24 percent contribution was made by the EU and 14 percent contribution by EFTA. Similar to exports, import were mostly sourced from SACU which accounted for 66 percent of overall imports, with the EU coming in a distant second place with 14 percent contribution to Namibia s total imports. BRIC contributed 9 percent, whereas COMESA and SADC- NON-SACU made up 6 percent each to total domestic imports. Sea transportation remained the most used mode of transports for exports, with 44 percent of the total exports and 33 percent via air transports, while road transported 23 percent of the value of all goods exported. By contrast, road transport was the largest mode of transport used, accounting for a staggering 62 percent of imports to Namibia, coming in second place was sea transportation with 31 percent of total imports. Which is about double the size of the contribution made by road transport. Meanwhile, air transport come in a distant third place with a meagre 6 percent contribution. Conclusion 23

24 List of Terms and Definitions Cost Insurance and freight (CIF): The transaction value of the goods, the value of services performed to deliver goods to the border of the exporting country and the value of the services performed to deliver the goods from the border of the exporting country to the border of the importing country. Export Processing Zone (EPZ): An Export Processing Zone (EPZ) is a Customs area where one is allowed to import machinery, equipment and material for the manufacture of export goods under security, without payment of duty. The imported goods are subject to customs control at importation, through the manufacturing process, to the time of sale/export, or duty payment for home consumption. Re-export: The export of foreign goods previously imported from the ROW. Trade Balance: The commercial balance or net exports (sometimes symbolized as NX), is the difference between the monetary value of exports and imports of output in an economy over a certain period. Trade Deficit: Is an economic measure of a negative trade balance in which a country's imports exceeds its exports. Trade Surplus: Is an economic measure of a positive trade balance in which a country's exports exceeds its imports. Free on board (FOB): The transaction value of the goods and the value of services performed to deliver goods to the border of the exporting country. 24 ANNUAL TRADE STATISTICS BULLETIN 2017

25 Acronyms USA UAE CIF FOB BRIC United States of America United Arab Emirates Cost Insurance and Freight Free on Board Brazil, Russia, India and China COMESA Common Market for Eastern and Southern Africa DRC EAC EFTA EPZ EU SACU SADC Democratic Republic of Congo East African Community European Free Trade Association Export Processing Zone European Union Southern African Customs Union Southern African Development Community Acronyms 25

26 Appendix Explanatory note on imports and exports of copper ores/concentrates between Namibia and Switzerland In the previous published Trade Statistics Bulletins by the Namibia Statistics Agency (NSA), Switzerland emerges among Namibia s top trading partners in terms of exports as a result of copper ores/concentrates traded between the two countries. Furthermore, the figures shows that copper ores/concentrates are re-exported to Switzerland instead of copper blisters. This is in fact an incorrect commodity misallocation going back as far as previous quarterly reports as a result of the way these particular consignments being declared and subsequently recorded by customs. Following this revelation, the NSA conducted a comparative analysis of trade data between Namibia and Switzerland using Common Format for Transit Data Exchange (COMTRADE), a United Nations database for export and import statistics. A physical inspection was also done at one of the Namibian processors as well as with some of the Clearing agencies. These physical inspections were jointly carried out by the NSA and Ministry of Finance (Customs) officials. The analysis showed that no trade of copper ore/concentrate took place between Namibia and Switzerland as indicated by Customs records and that the commodities allocated to Switzerland are indeed confirmed to be a misclassification. It is against this background that the appropriate corrective measures have been undertaken and are currently being implemented by all parties involved in the recording of these commodities in order to ensure that the correct commodity description and country of destinations for exports of this commodity is correctly recorded. At this juncture, the NSA wish to assure all esteemed users of the Trade statistics that although this issue affected previous edition of these reports, the reported figures on their own merit are not wrong. Therefore, they have no bearing on the overall figures of the imports/exports neither the overall trade balance as reported in all earlier published Trade Statistics reports. Although backward revision of previous reports is not possible due to the nature of recordings, the issue of misclassification of the country of destination and commodity descriptions is being attended to, the correct classifications will be reflected in the future. 26 ANNUAL TRADE STATISTICS BULLETIN 2017

27 Table 3: Trade by f.o.b and c.i.f value Year Value (N$ m) Export (f.o.b Import (c.i.f) Import (f.o.b) ,666 96,662 91, ,545 87,994 83,607 Table 4: Top ten export destinations Partner South Africa 15,021 24% 11,393 17% 32% Botswana 8,406 13% 9,972 15% -16% Switzerland 6,557 10% 13,327 20% -51% China 3,333 5% 2,412 4% 38% Belgium 3,228 5% 2,236 3% 44% Spain 3,123 5% 3,068 5% 2% United Arab Emirates 2,749 4% 1,519 2% 81% Italy 2,684 4% 2,776 4% -3% Zambia 2,505 4% 4,480 7% -44% France 2,298 4% 1,768 3% 30% Other 13,640 21% 13,715 21% -1% Total 63, % 66, % -5% Table 5: Top ten re-export destinations Partner Switzerland 6,545 28% 13,235 49% -51% Belgium 2,577 11% 1,650 6% 56% South Africa 2,464 11% 1,470 5% 68% Norway 1,705 7% 2,190 8% -22% Zambia 1,544 7% 3,361 13% -54% United States of America 1,173 5% 1,006 4% 17% China 877 4% 309 1% 184% Israel 692 3% 388 1% 79% United Arab Emirates 643 3% 221 1% 191% Angola 603 3% 1,231 5% -51% Other 4,274 19% 1,737 6% 146% Total 23, % 26, % -14% Appendix 27

28 Table 6: Top import destinations Partner South Africa 49,052 56% 56,082 58% -13% Bulgaria 5,816 7% 633 1% 818% Botswana 5,449 6% 6,652 7% -18% China 4,567 5% 2,875 3% 59% Zambia 4,220 5% 4,047 4% 4% India 1,910 2% 2,267 2% -16% United States of America 1,730 2% 1,836 2% -6% Peru 1,551 2% 1,230 1% 26% United Arab Emirates 1,304 1% 701 1% 86% Germany 1,216 1% 1,327 1% -8% Other 11,178 13% 19,009 20% -41% Total 87, % 96, % -9% Table 7: Top ten export by product group Commodities Diamond, Gold, and Precious Metals 20,824 33% 19,186 29% 9% Fish and crustaceans 8,960 14% 8,839 13% 1% Ores 8,082 13% 12,413 19% -35% Copper blisters 5,434 9% 5,687 9% -4% Zinc and articles thereof 2,919 5% 2,461 4% 19% Ships, boats and floating structures 2,665 4% 3,306 5% -19% Live animals 2,542 4% 1,031 2% 146% Vehicles 1,257 2% 895 1% 40% Machinery and mechanical appliances 1,027 2% 807 1% 27% Beverages, spirits and vinegar 1,021 2% 1,164 2% -12% Other 8,815 14% 10,876 16% -19% Total 63, % 66, % -5% 28 ANNUAL TRADE STATISTICS BULLETIN 2017

29 Table 8: Top ten re-export by product group Commodities Diamond, Gold, and Precious Metals 5,467 24% 4,729 18% 16% Copper blisters 4,203 18% 4,371 16% -4% Ores 2,895 13% 8,015 30% -64% Ships, boats and floating structures 2,664 12% 3,304 12% -19% Zinc and articles thereof 1,548 7% 0 0% % Vehicles 1,220 5% 856 3% 43% Machinery and mechanical appliances 920 4% 682 3% 35% Mineral fuels and oils 850 4% 122 0% 595% Miscellaneous chemical products 529 2% 303 1% 74% Articles of iron or steel 490 2% 2,258 8% -78% Other 2,311 10% 2,155 8% 7% Total 23, % 26, % -14% Table 9: Top ten import by product group Commodities Mineral fuels and oils 8,833 10% 12,289 13% -28% Vehicles 8,149 9% 9,189 10% -11% Machinery and mechanical appliances 7,643 9% 8,255 9% -7% Ores 7,624 9% 3,185 3% 139% Diamond, Gold, and Precious Metals 5,344 6% 6,566 7% -19% Electrical machinery and equipment 4,884 6% 4,877 5% % Copper blisters 3,998 5% 4,267 4% -6% Articles of iron or steel 2,915 3% 2,835 3% 3% Plastics and articles thereof 2,063 2% 2,133 2% -3% Beverages, spirits and vinegar 2,061 2% 2,117 2% -3% Other 34,482 39% 40,949 42% -16% Total 87, % 96, % -9% Appendix 29

30 Table 10: Exports and imports of fish Year Export Import Value (N$ m) % Change Value (N$ m) % Change ,580 33% 251-2% ,430 19% % ,250-3% % ,150-2% % ,770 12% 234 6% ,090 23% % ,120 % % ,100 % 445 2% ,840 25% % ,960 1% % Table 11: Export products to key markets South Africa Commodities Diamond, gold and precious metals 5,777 38% 4,522 40% 28% Live animals 2,477 16% 1,007 9% 146% Fish and crustaceans 1,402 9% 1,014 9% 38% Beverages, spirits and vinegar 781 5% 746 7% 5% Vehicles 769 5% 657 6% 17% Machinery and mechanical appliances 642 4% 542 5% 18% Mineral fuels and oils 552 4% 29 0% 1803% Meat and edible meat offal 412 3% 463 4% -11% Zinc and articles thereof 359 2% 298 3% 20% Prepared meat and fish 244 2% 396 3% -38% Other 1,604 11% 1,720 15% -7% Total 15, % 11, % 32% Botswana Commodities Diamond, gold and precious metals 7,803 93% 9,396 94% -17% Mineral fuels and oils 320 4% 333 3% -4% Vehicles 60 1% 22 0% 173% Machinery and mechanical appliances 53 1% 15 0% 253% Prepared meat and fish 51 1% 49 0% 4% Beverages, spirits and vinegar 26 0% 36 0% -28% Salt, sulphur, stone and plastering materials 19 0% 25 0% -24% Fish and crustaceans 11 0% 9 0% 22% Electrical machinery and equipment 11 0% 4 0% 175% Prepared cereals and pastry 8 0% 8 0% % Other 44 1% 75 1% -41% Total 8, % 9, % -16% 30 ANNUAL TRADE STATISTICS BULLETIN 2017

31 Switzerland Commodities Copper blisters 3,102 47% 4,318 32% -28% Ores 2,816 43% 8,103 61% -65% Diamond, gold and precious metals % 864 6% -28% Fish and crustaceans 9 0% 0 0% - Machinery and mechanical appliances 3 0% 8 0% -63% Other 4 0% 34 0% -88% Total 6, % 13, % -51% China Commodities Ores 1,790 54% 1,129 47% 59% Zinc and articles thereof 1,002 30% Salt, sulphur, stone and plastering materials 226 7% % -5% Ship, boats and floating structures 100 3% % -66% Animal fodder. 70 2% 181 8% -61% Furniture, bedding and mattresses 49 1% 0 0% - Stone, Plaster, cement and asbestos 42 1% 0 0% - Electrical machinery and equipment 25 1% 0 0% - Fish and crustaceans 6 0% 12 0% -50% Prepared meat and fish 5 0% 1 0% 400% Other 17 1% % -97% Total 3, % 2, % 38% Belgium Commodities Diamond, gold and precious metals 1,596 49% 1,714 77% -7% Copper blisters % Zinc and articles thereof % % 37% Ores 196 6% 0 0% - Tobacco and tobacco substitutes 172 5% Edible fruits and nuts 57 2% 44 2% 30% Mineral fuels and oils 11 0% 1 0% 1000% Fish and crustaceans 10 0% 49 2% -80% Wood and articles of wood 8 0% 14 1% -43% Used personal effects 6 0% 1 0% 500% Other 10 0% 18 1% -44% Total 3, % 2, % 44% Appendix 31

32 Table 12: Re-export products to key markets Switzerland HS commodity Copper blisters 3,102 47% 4,318 33% -28% Ores 2,816 43% 8,015 61% -65% Diamond, gold and precious metals % 864 7% -28% Machinery and mechanical appliances 3 0% 8 0% -63% Other 0 0% 30 0% -98% Total 6, % 13, % -51% Belgium HS commodity Diamond, gold and precious metals 1,455 56% 1,637 99% -11% Copper blisters % - 0% - Zinc and articles thereof % - 0% - Tobacco and tobacco substitutes 172 7% - 0% - Ores 76 3% - 0% - Machinery and mechanical appliances 5 0% 4 0% 32% Other 1 0% 9 1% -94% Total 2, % 1, % 56% South Africa HS commodity Vehicles % % 18% Machinery and mechanical appliances % % 23% Mineral fuels and oils % 2 0% 27926% Electrical machinery and equipment 156 6% 95 6% 65% Diamond, gold and precious metals 126 5% 102 7% 24% Railway or tramway locomotives 73 3% 13 1% 480% Medical and photographic equipment 40 2% 60 4% -33% Glass and glassware 39 2% 5 0% 664% Ships, boats and floating structures 29 1% 14 1% 108% Iron and steel 29 1% 3 0% 858% Other 178 7% 118 8% 50% Total 2, % 1, % 68% Norway HS commodity Ships, boats and floating structures 1, % 2, % -22% Machinery and mechanical appliances 1 0% 1 0% 22% Other 1 0% 2 0% -77% Total 1, % 2, % -22% 32 ANNUAL TRADE STATISTICS BULLETIN 2017

33 Zambia HS commodity Articles of iron or steel % 2,209 66% -80% Miscellaneous chemical products % 111 3% 148% Rubber and articles thereof % 0 0% % Beverages, spirits and vinegar % 266 8% -41% Vehicles 106 7% 23 1% 355% Plastics and articles thereof 85 6% 27 1% 215% Inorganic chemicals compounds 48 3% 37 1% 30% Paper and paperboard 36 2% 145 4% -75% Meat and edible meat offal 33 2% 9 0% 288% Machinery and mechanical appliances 27 2% 28 1% -3% Other 79 5% % -84% Total 1, % 3, % -54% Table 13: Import products from key markets South Africa Commodities Vehicles 6,740 14% 8,497 15% -21% Machinery and mechanical appliances 5,213 11% 6,143 11% -15% Electrical machinery and equipment 3,203 7% 3,334 6% -4% Mineral fuels and oils 2,500 5% 3,769 7% -34% Articles of iron or steel 2,007 4% 2,274 4% -12% Beverages, spirits and vinegar 1,896 4% 1,966 4% -4% Plastic and articles thereof 1,591 3% 1,800 3% -12% Pharmaceutical products 1,480 3% 1,529 3% -3% Clothing and accessories, knitted or crocheted 1,190 2% 1,148 2% 4% Cosmetics, toiletries and resinoid 1,176 2% 1,147 2% 3% Paper or paperboard 1,039 2% 1,091 2% -5% Other 21,016 43% 23,384 42% -10% Total 49, % 56, % -13% Bulgaria Commodities Ores 5, % % 903% Inorganic chemicals compounds 15 0% 49 8% -69% Salt, sulphur, stone and plastering materials 7 0% Other 4 0% 7 1% -43% Total 5, % % 819% Appendix 33

34 Botswana Commodities Diamond, gold and precious stones 5,114 94% 6,177 93% -17% Electrical machinery and equipment 96 2% 96 1% % Vehicles 54 1% 113 2% -52% Machinery and mechanical appliances 33 1% 51 1% -35% Mineral fuels and oils 29 1% 13 0% 123% Pharmaceutical products 15 0% 74 1% -80% Tanning or dyeing extracts 11 0% 13 0% -15% Plastic and articles thereof 11 0% 19 0% -42% Furniture, bedding and mattresses 11 0% 2 0% 450% Paper or paperboard 11 0% 11 0% % Other 64 1% 83 1% -23% Total 5, % 6, % -18% China Commodities Articles of iron or steel % 262 9% 167% Machinery and mechanical appliances % % 71% Electrical machinery and equipment % % 30% Vehicles 401 9% 99 3% 305% Arms and ammunition 351 8% 2 0% 17450% Inorganic chemicals compounds 281 6% 192 7% 46% Aircraft, spacecraft and parts thereof 241 5% 19 1% 1168% Iron and steel 181 4% 225 8% -20% Medical and photographic equipment 93 2% 91 3% 2% Plastic and articles thereof 89 2% 74 3% 20% Other % 1,038 36% -10% Total 4, % 2, % 59% Zambia Commodities Copper blisters 3,893 92% 3,882 96% % Tobacco and tobacco substitutes 171 4% 23 1% 643% Animal fodder 114 3% 71 2% 61% Sugar and sugar confectionery 6 0% 9 0% -33% Explosives pyrotechnic products 6 0% Machinery and mechanical appliances 6 0% 5 0% 20% Electrical machinery and equipment 4 0% 1 0% 300% Medical and photographic equipment 4 0% 0 0% - Vehicles 3 0% 4 0% -25% Salt, sulphur, stone and plastering materials 2 0% 2 0% % Other 11 0% 51 1% -78% Total 4, % 4, % 4% 34 ANNUAL TRADE STATISTICS BULLETIN 2017

35 Table 14: Trade by border post/office Office/border post Value (N$ m) Share Import Value (N$ m) Share Value (N$ m) Share Export Value (N$ m) Ariamsvlei 3,775 6% 17,322 20% 2,722 4% 18,661 19% Eros Airport 7,884 12% 3,154 4% 9,917 15% 3,806 4% F. P. du Toit 0 0% 3,437 4% - 0% 3,052 3% Gobabis - 0% 0 0% - 0% 1 0% Grootfontein - 0% 0 0% - 0% 0 0% Chief Hosea Kutako Intl Airport 13,380 21% 2,120 2% 9,814 15% 2,340 2% Impalila Island - 0% 15 0% - 0% 12 0% Katima Mulilo - 0% 0 0% 0 0% 19 0% Katwitwi 8 0% 1 0% 2 0% 1 0% Keetmanshoop 0 0% 2 0% - 0% 83 0% Lüderitz 4,314 7% 1,180 1% 3,720 6% 3,743 4% Klein Manase 0 0% 1 0% 0 0% 1 0% Mohembo 23 0% 134 0% 25 0% 166 0% Ngoma 225 0% 393 0% 390 1% 405 0% Noordoewer 2,283 4% 9,586 11% 2,281 3% 9,459 10% Omahenene 70 0% 2 0% 37 0% 2 0% Ondangwa 0 0% - 0% 0 0% 1 0% Oranjemund 80 0% 1,022 1% 114 0% 894 1% Oshakati - 0% 1 0% 0 0% 156 0% Oshikango 663 1% 50 0% 664 1% 54 0% Otjiwarongo - 0% 2 0% - 0% 2 0% Ruacana 1 0% - 0% 1 0% 0 0% Rundu 2 0% 3 0% 5 0% 2 0% Trans Kalahari 4,132 7% 15,932 18% 3,256 5% 19,214 20% Tsumeb 4 0% 1 0% 5 0% 8 0% International Airport-Windhoek 1 0% 19 0% 1 0% 19 0% Walvis Bay 23,427 37% 26,579 30% 29,112 44% 26,526 27% Wenela 3,203 5% 4,266 5% 4,599 7% 4,371 5% Windhoek Regional Warehouse Office 0 0% 2,632 3% - 0% 3,077 3% Windhoek Regional Office 70 0% 96 0% 2 0% 279 0% Windhoek Regional Excise Office - 0% 46 0% - 0% 310 0% Total 63, % 87, % 66, % 96, % Share Appendix 35

36 Namibia Statistics Agency P.O. Box 2133, FGI House, Post Street Mall, Windhoek, Namibia Tel: Fax: ANNUAL TRADE STATISTICS BULLETIN 2017