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SACU gets 30% of Namibia’s exports – News Stand - Windhoek Observer SACU gets 30% of Namibia’s exports – News Stand  Windhoek Observer

#Namibia #SACU #Exports #News #Economy

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SACU gets 30% of Namibia’s exports Chamwe Kaira The Southern African Customs Union (SACU) was Namibia’s largest export destination in June, taking 30% of total exports, data from the Namibia Statistics Agency (NSA) shows. The BRIC+5 bloc followed closely with 29.9%, while the European Union (EU) accounted for 12.5%. COMESA made up 11.6% and the OECD 9.1%. Exports to SACU were mainly non-monetary gold and diamonds. The BRIC+5 bloc received mostly uranium.  The EU market imported fish, beef and ores and concentrates of base metals. COMESA’s main imports from Namibia were fish, sulphur, unroasted iron pyrites and rubber tyres. The OECD market took uranium and nickel ores and concentrates. On the import side, SACU was also Namibia’s largest source, supplying 39.6% of all imports. Goods included commercial motor vehicles, sugars, molasses, honey and alcoholic beverages. BRIC+5 supplied 15.3% of imports, mostly civil engineering and contractors’ equipment, iron and steel bars, and motor vehicles for transporting people. The EU supplied 9.5% of imports, mainly petroleum oils, rubber tyres and motor vehicles.  The OECD provided 8.4%, dominated by rubber tyres and contractors’ equipment. COMESA contributed 6.9%, supplying ores and concentrates of base metals as well as nickel ores and concentrates. The NSA said Namibia’s trade strategy is built on its participation in key Free Trade Agreements (FTAs). These include the SADC protocol on trade, the Economic Partnership Agreement with the EU and UK, and SACU. “Through these agreements, Namibia benefits from reciprocal preferential access to regional and global markets, allowing preferential treatment on certain commodities in these markets. This explains higher trade volumes between Namibia and these markets when compared to the rest of the world,” the NSA observed. Caption  Namibia’s exports mostly went to the SACU region.  * Photo: Contributed

#Namibia #Exports #SACU #Trade #Economy

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South Africa takes SACU chairmanship from Namibia in rotational handover - Namibia Economist South Africa takes SACU chairmanship from Namibia in rotational handover  Namibia Economist

#SouthAfrica #SACU #Namibia #InternationalRelations #RegionalCooperation

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SACU ministers forced to confront tariff threats Niël Terblanché Finance minister Ericah Shafudah opened the 52nd meeting of the Southern African Customs Union (SACU) Council of Ministers with a warning that the months ahead will test the bloc’s ability to protect export markets and drive industrial reform. Speaking in Windhoek on Wednesday, as Namibia’s term as SACU chair comes to an end, Shafudah told delegates, “This is indeed a critical period for SACU as we navigate these challenging times.” Ministers from the five SACU member states are meeting for two days to respond to the United States’ new tariff policies and prepare for the possible expiry of the African Growth and Opportunity Act (AGOA) in September. Shafudah reminded ministers that AGOA has brought significant benefits to the region through market access, job creation, and revenue.  She urged trade ministers to push for an extension of the agreement.  “Despite the major challenge ahead, we must secure an extension,” she said, adding that the council would support negotiations in Washington with the necessary policy and strategic backing. She also addressed the impact of global instability, noting that conflicts in the Middle East and Eastern Europe are driving up energy costs and slowing global growth.  The World Economic Outlook projects global expansion of just 3% in 2026. SACU’s own weighted growth is expected to reach only 2% this year. Shafudah said this makes it vital for the bloc to diversify its economies and speed up reforms. Ministers reviewed progress on the SACU Strategic Plan 2022–2027, which was adopted to drive industrialisation, agroprocessing, and support continental trade under the African Continental Free Trade Area (AfCFTA). The Council expects updates on regional projects for fertiliser, agrochemicals, and seed production before presenting its findings to the SACU Heads of State Summit on Friday. Shafudah urged faster delivery of these initiatives to support job creation and reduce the region’s dependence on exporting raw materials. “We must create opportunities at home,” she said. On Thursday, ministers will attend a retreat focused on the reimagined SACU reform plan.  This blueprint includes proposals for simplified customs procedures and a new decision-making structure.  It has been shaped through national consultations and refined by the SACU Commission earlier this month. Delegates aim to finalise an actionable plan to present to leaders at the ninth SACU Summit on 27 June. Namibia’s chairmanship of SACU’s institutions ends on 14 July.  Shafudah used her final address as chair to thank her colleagues and wished South Africa, the incoming chair, success. With tariff deadlines looming and economic prospects limited, Shafudah said the Council’s decisions this week will shape how SACU responds to global pressures and defends its export position.

#SACU #Tariffs #TradePolicy #AGOA #EconomicGrowth

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SACU and diamond sales push up import cover Justicia Shipena  Namibia’s foreign exchange reserves grew by 6.6% in April 2025, reaching N$63.6 billion.  This means the country now has enough money saved to pay for about 4.2 months of imports or 5.1 months if one excludes special oil-related imports that are funded from outside. Simonis Storm Securities revealed this in its April 2025 report on private sector credit extension released on Monday. According to Simonis Storm Securities, the rise in reserves is good news for Namibia. “The recovery in reserves reverses the sharp decline seen in March and helps restore external buffers. This improvement strengthens the credibility of Namibia’s currency peg and reinforces resilience against potential external payment pressures in a volatile global trade environment,” stated the financial research firm. “The recovery in reserves helps rebuild the country’s financial safety net and supports the value of the Namibian dollar,” the firm said in its latest report on private sector credit extension for April 2025. The improvement in the country’s reserves was mainly driven by higher income from diamond sales, payments from government bonds, and more money coming in from the Southern African Customs Union (SACU). The report stated that, in April, Namibia’s commercial banks also had more money on hand, which is about N$9.9 billion compared to N$9.4 billion in March. Simonis Storm says this is the highest level seen in over a year and shows that the banking sector has good liquidity, or, in simple terms, there is enough cash to lend and keep the economy moving. It added that this healthy cash flow has helped credit or borrowing to keep growing. As a result, businesses and individuals are borrowing more, supported by confidence in the banking system and slightly lower inflation. The amount of money circulating in the economy grew by 11.6% in April compared to a year earlier, as people deposited more money in the bank and held more cash. Simonis Storm said inflation also slowed down in April to 3.6%, from 4.2% in March. The economists at the firm believe this was helped by lower prices for food, transport, and housing. Over the weekend, the Ministry of Industries, Mines and Energy announced a 30-cent cut in petrol and a 70-cent cut in diesel for June.  This, Simonis Storm said, should help ease costs even more. However, Simonis Storm warns that challenges remain, pointing to talks between big economies like the U.S. and China that may affect trade rules, and this could raise the cost of importing goods. It said Namibia’s economy, which depends on imported items like fuel and food, could feel the pressure. “If global costs go up again, Namibia may struggle with rising prices later this year,” the firm said. In that case, the Bank of Namibia may find it hard to lower interest rates, even if the economy needs more support.”

#Namibia #Economy #ForeignExchange #Imports #SACU

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SACU calls on the U.S. to reconsider its trade tariffs Niël Terblanché The Southern African Customs Union (SACU) has called on the United States to reconsider its planned tariff increases, warning they could harm trade relations and reverse development gains in Least Developed Countries (LDCs) and those under the African Growth and Opportunity Act (AGOA). The SACU Council of Ministers made the appeal in a joint communique after their recent meeting in Johannesburg.  The council, chaired by finance minister Erica Shafudah, urged the U.S. administration to apply the principle of differential treatment and exempt LDCs and AGOA-eligible countries from the new tariffs set to take effect in July. The U.S. had planned to implement reciprocal tariffs from 9 April 2025, but these were suspended for 90 days to allow for negotiations.  “While we recognise that the reciprocal tariffs have been paused for 90 days, effective until July 9, 2025, and a universal 10% rate will now apply in the interim, the uncertainty for SACU exports to the U.S. remains,” the joint communiqué reads. The ministers expressed concern that unilateral decisions like these pose a threat to global trade systems.  “The Member States of SACU have noted with concern the rise in unilateral measures that fragment global trade,” the communique said. SACU consists of Botswana, Lesotho, Namibia, South Africa, and Eswatini. These countries trade with the U.S. under the “Most Favoured Nation” principle and preferential programs such as AGOA and the U.S. Generalised System of Preferences (GSP). According to SACU, these agreements have supported mutually beneficial trade and encouraged U.S. investments and joint industry supply chains.  The council warned that the proposed tariff changes could shift exports away from processed goods to raw materials, hurting manufacturing and jobs. The ministers said this shift risks reversing progress made through trade cooperation with the U.S.  “Such measures risk reversing the developmental gains achieved through cooperation with the U.S., gains that have helped lift millions out of poverty in the SACU region and across Africa,” the communique states. SACU members plan to work together on strategies to reduce possible disruptions.  “We will continue to assess the impact of current U.S. trade measures on industries, exports, and jobs while exploring diplomatic channels and trade negotiations to strengthen our position,” the council said. The meeting ended with an agreement amongst council members to keep engaging the U.S. and to pursue trade deals that promote fair market access and industrial growth.

#TradeTariffs #SACU #LDCs #AGOA #TradeRelations

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Sacu warns US tariffs threaten hard-won trade gains The Southern African Customs Union (Sacu) says the decision by the United States (US) to impose new tariffs on imports risks reversing vital development gains across southern Africa. Speaking in Johannesburg, South Africa, on Monday, Sacu Council of Ministers chairperson and finance minister Ericah Shafudah criticised the Trump administration’s move to implement a universal 10% tariff, set to take effect on 9 April, without prior consultations with affected member states. Though a 90-day pause has temporarily delayed the full impact, Sacu argues that the uncertainty created has already begun to disrupt trade flows and investor confidence. “The US’s unilateral action to raise tariffs without prior consultations with the affected member states is a departure from the norm and will have significant implications on global trade and the foundational principles of the multilateral trading system,” Shafudah said. Sacu – the oldest customs union in the world comprising Botswana, Eswatini, Lesotho, Namibia and South Africa – has relied heavily on trade mechanisms like the most favoured nation principle, the African Growth and Opportunity Act (Agoa), and the US generalised system of preferences. Shafudah said these preferential trade schemes have enabled duty-free access for designated African countries, fostering increased US investment, industrial growth, job creation, and the development of intra-industry supply chains. “For the Sacu region, the imposition of tariffs would reverse the gains made with the US which supported lifting millions out of poverty on the continent. “The Sacu council is now calling for urgent diplomatic engagement to resolve the matter before the tariff pause expires on 9 July. “In this regard, Sacu wishes to call upon the US to consider observing differential treatment, more especially to consider exempting least developed countries and Agoa-eligible countries from these tariff measures,” Shafudah said. Sacu members further reaffirmed their support for a predictable, development-oriented, transparent, fair, inclusive, and rules-based multilateral trading system with the World Trade Organisation (WTO) at its core. “The Sacu members further emphasise the need for the urgent reform of the WTO [World Trade Organisation] to address existing imbalances and provide policy space for Africa’s industrialisation,” Shafudah said. To preserve the internal market, the bloc says it will ensure that in any efforts to conclude partnerships with the US, the common external tariff is preserved, and due regard is taken not to undermine regional industrial capabilities. The Sacu region is ready to engage with the US to find an amicable solution to its trade concerns and to seek cooperative solutions that promote mutually beneficial trade and investment relations, as well as preserve existing supply-chains. The Sacu members also commit to prioritise the implementation of the African Continental Free Trade Area, including finalising the outstanding rules of origin on clothing, textiles and automotives, the development of regional value-chains to set Sacu on a more sustainable development trajectory, and to coordinate export strategies to leverage existing trade agreements that Sacu is party to. The post Sacu warns US tariffs threaten hard-won trade gains appeared first on The Namibian.

#Trade #Tariffs #SACU #USTrade #GlobalEconomy

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Namibia navigates SACU revenue decline with strategic reforms and economic diversification Namibia, like many nations reliant on regional trade frameworks, faces significant fiscal challenges due to the volatility of revenue from the Southern African Customs Union (SACU). During the recent parliamentary debate on the 2025/26 budget, Finance Minister Ericah Shafudah underscored the pressing issue of declining SACU revenues, a critical income

#Namibia #SACU #EconomicDiversification #FiscalChallenges #RevenueDecline

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“Stay updated on SACU’s latest initiatives! The Southern African Customs Union is enhancing regional trade efficiency through streamlined customs procedures and infrastructure upgrades.
#SACU
#RegionalTrade #TransKalahariRailway #TradeAgreements #EconomicGrowth
#BlackAngst

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Imports of commercial vehicles from SA increase CHAMWE KAIRA  The Southern African Customs Union (SACU) emerged as the biggest export destination for Namibian goods in February with a share of 30.7% of total exports, the Namibia International Merchandise Trade Statistics Bulletin revealed. BRICS and the OECD followed in second and third positions, contributing 23.7% and 23.3% to Namibia’s total exports, respectively. The Southern African Development Community (SADC), excluding SACU, and the European Union (EU) respectively occupied the fourth and fifth positions, accounting for 18.8% and 17.8% of total exports. Exports to SACU consisted mainly of non-monetary gold, while the export basket to the BRICS market was dominated by uranium. Exports to the Organisation for Economic Co-operation and Development (OECD) mainly comprised fish, uranium and ‘copper and articles of copper’, while the SADC excluding SACU market absorbed mostly fish, fertilisers and ‘sulphur and unroasted iron pyrites’. Lastly, fish, uranium and ‘copper and articles of copper’ were the main commodities demanded by the EU market. According to February data, SACU was Namibia’s largest market for imports, accounting for 40.1% of total imports, which were primarily made up of motor vehicles for commercial purposes, sugars, molasses, honey, and maize. BRICS emerged second with a share of 21.4%, supplying the country mostly with petroleum oils, motor vehicles for commercial purposes and wheat, while the OECD came in third position with a share of 18.7% of all goods imported, providing the country mostly with petroleum oils, ‘civil engineering and contractors’ equipment’ and ‘ores and concentrates of precious metals’. The Common Market for Eastern and Southern Africa (COMESA) and SADC, excluding SACU, occupied the fourth and fifth positions, accounting for 10.6% and 10.2% of total imports, in that order. Imports into Namibia from the COMESA and SADC, excluding SACU markets, were mostly made up of nickel ores and concentrates, inorganic chemical elements and ‘ores and concentrates of base metals. Sea maintained the top position as the most common mode of transport for exports, handling exports to the tune of N$5.3 billion. This export value represents 52.6% of total exports that left the country during the reference period. The basket of exports via sea consisted mainly of uranium and fish. The second most common mode of transport for exports was road, which accounted for 26.1% of total exports, and its export basket was mainly made up of petroleum oils and fish. Lastly, air transportation accounted for 21.3%, with non-monetary gold and precious stones (diamonds) being the highest-valued commodities transported via the respective mode. In terms of volume, a total of 258 490 tonnes of goods left the country, representing a decrease of 35.2% and 11.9% when compared to January 2025 and February 2024, respectively. In February, 164 932 tonnes of goods were recorded as exported via road, representing a decrease of 15.4% month-on-month and an increase of 28.7% year-on-year. A total of 93 443 tonnes of goods left the country by sea, yielding a decrease of 54.1% and 43.4% when compared to 203 729 tonnes and 165 063 tonnes registered in January 2025 and February 2024, respectively. Finally, only 114 tonnes of goods left the country by air during February 2025, indicating an increase of seven tonnes’ month-on-month and 57 tonnes’ year-on-year.

#Imports #Exports #CommercialVehicles #Namibia #SACU

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Economist cautions against SACU, which holds Namibia’s fate – News Stand - Windhoek Observer Economist cautions against SACU, which holds Namibia’s fate – News Stand  Windhoek Observer

#Economics #Namibia #SACU #TradePolicies #AfricanEconomy

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Economist cautions against SACU, which holds Namibia’s fate Ester Mbathera  With the Namibian dollar pegged to the South African rand, the country finds itself caught in the eye of the storm as the trade dispute between the United States and South Africa intensifies. At the same time, with 40% of its public budget reliant on the Southern African Customs Union (SACU) revenue pool, Namibia has every reason to be concerned. These are the sentiments of economist Dr. Omu Kakujaha-Matundu, who warned that any shift in SACU’s tariff structures could deal a severe blow to President Netumbo Nandi-Ndaitwah’s dream of job creation and economic growth. He cautioned that Lesotho, in its desperation, could buckle to economic pressure and offer a low or zero tariff, as well as South Africa, whose tariff board is the only instrument that can set the Common External Tariff for SACU. “Now, let’s say Lesotho, as well as South Africa, which has had tariffs imposed at 31%, and the other three SACU members agree to lower tariffs to save their industries. The tariff revenue that used to flow into the SACU pool will be reduced, and the share of revenue that Namibia gets from this pool will be less. Namibia gets 40% of its public budget from SACU. Then, President Ndaitwah can kiss her dream of creating jobs goodbye, or she could figure out how we could do more with less,” said Kakujaha-Matundu. Rodney Cloete, the Chief Whip of the Independent Patriots for Change (IPC), also urged the government to speak with one voice with its neighbours in addressing the challenges posed by international tariffs. “Namibia exported approximately N$5.1 billion worth of goods to the US in 2024. A 10-20% drop in demand due to tariffs will undermine economic stability. Moreover, this challenge is compounded by the fact that neighbouring countries face steeper tariffs – Lesotho (50%), Botswana (37%), South Africa (30%), and Angola (32%). The absence of a coordinated response threatens regional trade integrity,” he said. The country’s dependence on SACU has long been a bone of contention. The late President Hage Geingob in 2023 criticised the manner in which South Africa is managing SACU. It was also Geingob’s position at the time that the union be reformed to a modern one with democracy in revenue sharing. On Tuesday, Ambassador Selma Ashipala-Musavyi, international relations minister, told parliament that her ministry has initiated and will continue discussions with the US embassy to fully understand the new tariff regime. However, she conceded that ultimately the fate of the country’s economic standing in this dispute lies largely in the hands of SACU. “Since Namibia is a member of SACU, and given the Common External Tariff applied by the Customs Union, dialogue at SACU is envisaged in order to have a common understanding on how best to engage the US Administration. In this context, I wish to inform that SACU has been tasked to undertake a comprehensive analysis of the impact of the new tariff imposed by the new US administration, she said. Earlier this year, the Bank of Namibia (BoN) projected that the country would face a decline in SACU revenue, from N$28 billion in 2024 to N$21 billion in 2025. Meanwhile, US President Donald Trump’s executive order, targeting SA’s land reform and support for Palestine, keeps Namibia in the mix of the diplomatic spat, having joined the ICJ case against Israel and unwaveringly supporting Palestinian self-determination. The country’s export market to the U.S. includes beef, blueberries, and grapes, though in smaller quantities. Fortunately, the country’s larger, more lucrative markets are the EU and China, which are more likely to absorb the shortfall should the US demand decrease.

#Namibia #Economy #SACU #TradeDispute #SouthAfrica

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Namibia calls for balanced SACU response to US tariffs Namibia calls for balanced SACU response to US tariffs NBC Online Fri, 04/04/2025 - 17:56

#Namibia #SACU #USTariffs #TradeRelations #CustomsUnion

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SACU, taxes drive Namibia’s economic growth - Namibian SACU, taxes drive Namibia’s economic growth  Namibian

#Namibia #EconomicGrowth #SACU #Taxes #News

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SACU, taxes drive Namibia’s economic growth Namibia’s economy experienced notable growth in 2024, with both gross national income (GNI) and gross national disposable income (GNDI) increasing, according to the Namibia Statistics Agency (NSA) annual national accounts report. GNI, which measures the income generated by Namibian factors of production both inside and outside the country, rose to N$236.9 billion in 2024, from N$217.9 billion in 2023. “This represents a growth of N$19 billion, reflecting a healthy expansion in the national economy,” the NSA reports. While GNI measures national income, GNDI, which includes net transfers from abroad, was higher than. GNDI increased to N$268 billion, up from N$243.9 billion in 2023. This increase is largely attributed to receipts from the Southern African Customs Union (SACU). The government also experienced revenue growth, reaching N$91.9 billion in 2024 compared to N$81.2 billion in the previous year. “The increase in government income is largely driven by higher receipts from SACU and increased taxes on income and wealth,” the report states. Taxes on income and wealth rose to N$32.8 billion in 2024, up from N$28.5 billion in 2023, while SACU receipts grew from N$21.8 billion to N$27.1 billion over the same period. Despite the positive growth in income, property income, which had been an important revenue source, declined by N$700 million in 2024, falling from N$6.6 billion in 2023. Additionally, the value of Namibia’s economy increased by N$16.2 billion to N$245.1 billion in 2024, up from N$228.9 billion in 2023. “The domestic economy has maintained a growth trend since 2021, recording a 3.7% increase in real value added in 2024, compared to the 4.4% growth seen in 2023,” the NSA reports. The slower economic performance in 2024 is primarily attributed to a decline in the growth rate of primary industries, which contracted by 1.8%, in stark contrast to the 10% growth recorded in 2023. The main contributor to this decline was the agriculture, forestry and fishing sector, which shrank by 2.7%. This contraction was driven by weaker crop farming outputs and a drop in the production of preserved and prepared fish. The annual national accounts report provides estimates on variables such as national income, savings, gross domestic product and external transactions. The post SACU, taxes drive Namibia’s economic growth appeared first on The Namibian.

#Namibia #EconomicGrowth #GNI #GNDI #SACU

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