Among the various industries of the economy, the manufacturing industry emerged as the largest exporting industry for October 2021. The industry exported goods worth N$5 billion, representing 60% of total exports.
Out of the N$5 billion worth of manufactured goods exported, 61.4% are re-exports, which is a reflection of the country’s small manufacturing base.
These were reflected by the Namibia Statistics Agency (NSA) in its trade statistics bulletin for the month under review.
Re-exports are commodities imported by residents who assume short-term ownership of the commodities. Subsequently, these commodities, are exported without undergoing any significant industrial transformation.
NSA noted even though no substantial transformation is done, re-exports have the potential to benefit the intermediate country by rendering services such as sorting, repackaging, storage, transport and trade mediation services. This implies that the country’s services sector greatly benefits from activities of re-exports. Additionally, re-exports serve as an indication of favourable corporate tax in the intermediate country.
Furthermore, the bulletin revealed export of goods from the manufacturing industry decreased by N$1.3 billion from N$6.2 billion recorded in September 2021.
The mining and quarrying industry came in second place after recording exports valued at N$2.9 billion in October 2021. Exports from the mining and quarrying industry, increased by N$927 million from N$1.9 billion recorded in September 2021.
“The demand side also showed a similar trend, with goods from the manufacturing industry emerging on top of the list of goods imported, with an import bill of N$10.5 billion in October 2021. An increase of N$1.2 billion from N$9.3 billion recorded in September 2021. Furthermore, the mining and quarrying industry imported goods to the tune of N$4.6 billion representing an increase of N$2.5 billion from N$2.1 billion recorded in September 2021,” reads the statement.