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Re-exports benefit Namibia’s services sector

Namibia imported rice valued at N$18,8 million in June and re-exported rice worth N$200 000 during the same period.

This was said by Namibia’s statistician general and chief executive of the Namibia Statistics Agency, Alex Shimuafeni, when he presented the Namibia Merchandise Trade Statistics bulletin for June.

He said Namibia’s export earnings decreased by 5,9% in June – from N$9,2 billion recorded in May to N$8,7 billion.

“Moreover, the import bill for the month under review decreased by 15,9% when compared to N$12,0 billion recorded during the previous month, resulting in a trade deficit of N$1,4 billion, compared to N$2,8 billion recorded in May,” Shimuafeni said.

Namibia’s exports continue to be on an upward trajectory, recording N$51,6 billion for the first six months of 2023, which is higher when compared to N$45 billion registered during the same period of 2022.

On the import side, cumulative trade for the first six months amounted to N$62,8 billion, an increase of N$1,6 billion when compared to the same period of the previous year.

In April 2023, the manufacturing industry emerged as the industry with the largest amount of exported goods valued at N$4,9 billion, absorbing 64,4% of total exports, and products from the industry increased by N$220 million from the value recorded in March 2023.

Products from the mining and quarrying industry came in second position, with exports worth N$2,2 billion in April 2023.

Exported goods from this industry decreased by N$2,7 billion when compared to the value recorded in March 2023.

Shimuafeni said Namibia’s trade composition by partner showed that South Africa emerged as the country’s largest market for both exports and imports.

The composition of the export basket for June this year mainly comprised minerals such as precious stones (diamonds), non-monetary gold, uranium and copper and copper articles.

Fish remained the only non-mineral product under the top-five products exported.

June 2023 saw Namibia’s top-five export markets accounting for 63,6% of total exports.

South Africa took first position as Namibia’s main export destination, accounting for 20,5% of exports, Botswana came second with a share of 18,3%, and Zambia was in third position with a share of 9,6%.
China and the United Arab Emirates, with shares of 7,8% and 7,3%, occupied fourth and fifth positions, respectively.

During the month under review, the top-five import markets for the country accounted for 69,5%.

South Africa occupied the first position with a share of 46,4%. In second position was China with a share of 11,7%, followed by Malaysia in third position, supplying the country with 4,9% of its import bill.

The United States and Italy, with 3,6% and 3,0%, took fourth and fifth positions respectively.

According to Shimuafeni, the import basket was mainly comprised of petroleum oils, precious stones (diamonds), motor vehicles for the transportation of goods, thermionic cathode valves and tubes and civil engineering and contractors’ equipment.

For the month under review, re-exports increased by 20,9% month on month, and 3,7% year on year.

The re-exports basket mainly comprised of precious stones (diamonds), copper and copper articles, and petroleum oils.

Re-exports are commodities imported by residents who assume short-term ownership of the commodities.

These commodities are exported without undergoing any significant industrial transformation.

Even though there are no large transformations, re-exports benefit the intermediate country by rendering services such as sorting, repackaging, storage, transport and trade mediation services.

This implies that the country’s services sector greatly benefits from re-export-related activities.

During June goods amounting to N$2,9 billion were re-exported, an increase of 20,9% month on month, and of 3,7% year on year, compared to N$2,4 billion recorded in the previous month, and N$2,8 billion observed during the same month last year.

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