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Trade deficit pegged at N$6.2 billion

Trade deficit pegged at N$6.2 billion

Namibia recorded a trade deficit of N$6.2 billion in in the second quarter of 2017, which is mainly attributed to a larger decline in the import bill (-N$4.1bn) than the decline in export receipts (-N$1.5bn) during this period, the Namibian Statistics Agency reported.

According to the agency, the quarterly merchandise trade deficit narrowed in the second quarter of 2017 when compared with the same period last year (N$8.8 billion.) The value of exported goods fell by 9.8% y-o-y in the second quarter of 2017. This decline is attributed to lower copper cathode exports (-16% y-o-y) to Switzerland, lower diamond exports (-30.8% y-o-y) to Botswana and lower fish exports (-21.6% y-o-y) to Spain.

Meanwhile the value of imported goods declined by 9 % y-o-y in during the same quarter. The lower import bill was thanks to a decline in the imports of vehicles, boilers and petroleum products from South Africa and lower diamond imports from Botswana

Significantly higher international copper and zinc prices over the past year have, disappointingly, not translated into substantial increases in refined Namibian copper and zinc exports. Also, despite a recovery in Namdeb’s diamond production, following extended planned maintenance of its main diamond-mining sea vessel in Q2 2016, DeBeers’ rough diamond auction sales have been lackluster. Furthermore, the uranium price has remained severely depressed, at close to 13-year lows, which has weighed on uranium exports,” PSG Wealth Management Namibia said.

Looking ahead, PSG expects the quarterly trade deficit to narrow slightly during the rest of 2017 on the back of an expected recovery in diamond sales and continued growth in gold exports, while imports are expected to remain subdued due to weak local demand and low construction activity (due to the completion of major mining projects and governmental budget cuts to capital projects).

The country’s major export destinations in during this quarter were South Africa (23% of total exports), Switzerland (14.5%), Botswana (12.3%) and Spain (6.4%). While most of its imports were sourced from South Africa (60.4% of total imports), Botswana (6.9%), Bulgaria (4.4%), Zambia (4.3%) and China (3.7%).

The leading import commodities were petroleum products, vehicles, boilers and diamonds, while top export products were diamonds, copper (ores and cathodes), fish and livestock.


 

About The Author

Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys

Following reverse listing, public can now acquire shareholding in Paratus Namibia

Promotion

20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.