Staff Reporter
WHILE Namibia’s merchandise imports still exceed exports, the country’s trade deficit has narrowed by nearly half this year.
“The merchandise trade deficit narrowed on an annual basis during the second quarter of 2025, attributed to robust growth in export earnings and a stabilisation of import payments. The merchandise trade deficit contracted by 49.0% year-on-year to N$4.5 billion. The annual improvement in the merchandise trade balance was ascribed to an increase in export receipts, which rose by 25.4% to N$25.6 billion, driven mainly by gold and uranium export receipts,” the Minister of Finance, Ericah Shafudah, said.
Shafudah made these remarks in Parliament while delivering the Mid-Year Budget Review Statement for the 2025–2026 Financial Year.
The minister further revealed that merchandise imports rose modestly, increasing by 2.8% year-on-year to N$30.1 billion. This increase, she highlighted, was primarily due to higher imports of vehicles, machinery, electrical and mechanical appliances, and chemical products.
She also explained that import costs were lower this year due to the appreciation of the Nominal Effective Exchange Rate, driven in part by the United States’ temporary tariff pause.
“Annually, the Nominal Effective Exchange Rate appreciated by 0.2 per cent during Q2 2025, driven by a weaker US dollar due to concerns over US fiscal policy, central bank independence, erratic policy changes, a temporary tariff pause, and easing geopolitical tensions. This appreciation helped lower import costs, reducing inflationary pressures,” she explained.
Meanwhile, she added, the Real Effective Exchange Rate rose by 1.5 per cent annually, driven by higher domestic inflation relative to trading partners.
“As a result, Namibia’s trade competitiveness declined moderately, making exports more expensive and imports relatively cheaper,” the minister said.
