Trade deficit up despite export growth

Middle East tensions have seen Namibia’s trade deficit increase despite a growth in exports. After two years of shrinking deficits, Bank of Namibia Governor Ebson Uanguta said pressure on the country’s external position is likely to increase as the cost of imported fuel, fertiliser and other petroleum-based products rises. He was speaking after announcing that Namibia’s trade deficit had widened to about R9 billion ($548 million) in the first quarter of 2026, marking a 9.5% year-on- year increase as import costs outpaced export growth. This was despite a 7.5% rise in export earnings. “Namibia’s external position deteriorated since the February 2026 monetary policy committee (MPC) meeting,” said Uanguta. “The merchandise trade deficit widened by 9.5% year-on-year to approximately N$9 billion during the first quarter of 2026 due to a faster increase in import payments.” This was after Namibia’s external position strengthened significantly in 2025, with the merchandise trade deficit narrowing by 35.4% to R25 bn from R38.7 bn in 2024 supported by strong export earnings from uranium and gold. Analysis of Namibia’s trade balance from 2021 to 2025, provided by the Namibia Statistics Agency (NSA), shows that the country was starting to diversify its exports away from minerals. These include fish, fruit and nuts, according to NSA Statistician General Alex Shimuafeni. Minerals like diamonds, gold and uranium remained core (46% to 50% of exports), but non- minerals (fish, fruit, nuts) gained traction, supporting 7.5% export growth in late 2025. Namibia’s trade is global. In 2023, at the HS 6 digit level, 2 919 Namibian products were exported to 165 countries and 4 118 were imported from 200 countries, according to the World Integrated Trade Solution (WITS). Despite this diversity, the country remains dependent on trade with South Africa which has grown steadily between 2021 and 2025, with South Africa being the leading supplier. South Africa was Namibia’s largest export market in February 2026, followed by Zambia, China, Spain and the United Arab Emirates. These five markets absorbed more than two-thirds of total exports, with flows dominated by gold, fish and selected mineral products. On the import side, South Africa remained the main source of goods, while China, Zambia, Bahrain and Oman supplied a significant share of petroleum oils, nickel ores, vehicles and machinery, the NSA trade statistics report shows. According to the latest available Comtrade figures, Namibia’s exports to South Africa were valued at N$1.63 bn in 2025, dominated by pearls, precious stones, metals and coins (N$1,27 bn), followed by fish, crustaceans, molluscs and aquatic vertebrates at N$68.55m and live animals (N$66.34m). In contrast, South African exports to Namibia were valued at N$4.4 bn in 2025. Machinery, nuclear reactors and boilers were the biggest category (N$541m), followed by vehicles other than railway (N$472m) and electrical and electronic equipment (N$318.9m). ER