Despite Namibia’s manufactured goods facing competition from cheaper alternatives from other regions, the country managed to export goods worth US$6 billion (N$120 billion) in 2022.
This was said by Ministry of Industrialisation and Trade spokesperson Elijah Mukubonda in an overview of the international market penetration of Namibian goods issued on Thursday.
He said the key products Namibia exports are, among others, meat and meat products, charcoal and charcoal products, wine and beverages, fish and fisheries products and pasta and pastry products.
“In 2022, goods worth about US$1,3 billion (N$26 billion) were exported to the European Union, US$3 billion (N$60 billion) exported to the Southern African Development Community (SADC) and US$2,1 billion (N$42 billion) to the Southern African Customs Union (Sacu).
“Namibia’s exports to China stand at US$735 million (N$14,7 billion), United Arab Emirates US$210 million (N$4,2 billion) and to United States (US) US$128 million (N$2,56 billion),” Mukubonda said.
He said the ministry has commenced with the development of the National Export Promotion Strategy to promote Namibian goods internationally.
“This strategy aims to be a guidance for improving export performance and international competitiveness for Namibian products.
“We also have the Africa Continental Free Trade Area (AfCFTA) implementation strategy geared towards promoting trade on the continent,” he said.
These strategies work in tandem with trade agreements Namibia has with other countries to facilitate market access.
According to Mukubonda, these agreements, including the European Partnership Agreement (EPA), Sacu, the SADC Protocol on Trade and the AfCFTA agreement, are the most important agreements determining Namibia’s international trade relations.
“We also have the African Growth and Opportunity Act (Agoa), which seeks to assist the economies of sub-Saharan Africa to improve economic relations with the US, to facilitate sub-Saharan Africa’s integration with the global economy and to boost exports from these countries to the US,” the overview said.
Mukubonda said African and European markets are the priority target markets for Namibian exports, as Europe offers good prices and Africa offers proximity and cultural connectivity.
He said Namibia’s geographical location along the Atlantic Ocean and its efficient port logistics offer a good opportunity for trade with the region and the potential of turning the port of Walvis Bay in particular into a trade hub.
The ministry’s spokesperson said Namibia’s investment in the energy sector, such as in green hydrogen, could be a game changer and that oil and gas discoveries are likely to boast income at national level.
“However, if proper planning is not done, the challenge could be that the oil discovery would divert attention from non-oil sectors, such as agriculture and manufacturing and Namibia’s economy could end up depending on one sector – oil and gas.
The adaptation of skills to capitalise on green industrialisation could also be one of the challenges,” Mukubonda said.
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