Namibia’s trade with Angola goes through the roof UK and Spain dethroned

Alan Peat SOUTH AFRICA’S dominant position as Namibia’s number one trading partner is now under threat, according to Henry Flint, Africa researcher at Standard Bank. “This is especially true as far as Namibian imports from South Africa are concerned. In terms of exports to SA, these are less pronounced than imports, but SA has increasingly provided a market for Namibian products.” SA’s significant share of Namibian trade has been a reason why Namibia’s membership of the Common Monetary Area (CMA) has been so successful and advantageous, Flint added. “However, in recent years there has been a significant shift in the composition of Namibia’s trading partners. “Exports from South Africa to Namibia continue to dominate - but this domination is gradually softening as reciprocal trade with other countries develops. “In contrast exports from Namibia to SA have gradually increased in importance.” But a pronounced change has taken place in the composition of export partners, Flint added. “Interestingly the UK’s traditional importance as an export market has declined.” The most drastic change has been the sharp growth experienced in exports to Angola since the possibility of lasting peace in that country has finally become a reality. “As a result Angola’s share in total Namibian exports has grown from 5.8% in 2001 to 14.6% in 2002 and a whopping 25.7% in the first half of this year. “Angola has thus become Namibia’s second largest trading partner after SA (29.7% in the first half of the year) - dethroning the UK and Spain. “These developments are significant in analysing the implications for future economic growth and trade flows. “Also it is important for Namibia to continue diversifying its imports and exports away from its over-dependence on SA.”