Namibia Trade

Subchapters:

  • Business Relationships
  • Foreign direct investment
  • FTAs ​​and Treaties
  • Development Cooperation
  • Prospective fields of study (MOP)

Business relations

Trade relations with the EU

Trade relations with Namibia are regulated by the Agreement on Economic Cooperation between the EU and the Southern African Development Community EU-SADC EPA, which has been implemented since 2016. The EU-SADC EPA abolishes the vast majority of customs tariffs between the EU and Namibia and thus contributes positively to the increase in the volume of mutual trade exchanges. The trade balance is significantly positive on Namibia’s side. In 2021, Namibian companies exported €1.36 billion worth of goods to EU countries, while €51million worth of EU goods were imported into Namibia in the same year. The reason for the negative balance on the EU side is primarily the import of agricultural products (beef and fish) and mineral raw materials, including precious metals and diamonds.

2017 2018 2019 2020 2021
Exports from the EU (million EUR) 443.9 379.7 378.5 354.2 511.2
Imports into the EU (million EUR) 1,264.60 1,265.2 1 132.3 1 110.3 1,360.1
Balance with the EU (million EUR) 820.7 885.4 753.8 756.1 849

Source: European Commission

Trade relations with the Czech Republic

The volume of mutual trade between the Czech Republic and Namibia is minimal and far from reaching its potential. The turnover of trade exchange in 2021 amounted to CZK 12million. The positive trade balance is on the side of Namibia, as in the case of trade with the EU.

2017 2018 2019 2020 2021
Exports from the Czech Republic (million CZK) 47.7 46.1 64.1 27.9 51.4
Import to the Czech Republic (million CZK) 98 187.1 169.3 106.2 72.8
Balance with the Czech Republic (million CZK) 50.3 141 105.2 78.3 21.4

Source: businesscarriers.com

Trade relations with countries outside the EU

Trade exchange with countries outside the EU has been fluctuating in the last five years, with the negative trade balance due, among other things, to economic dependence on neighboring South Africa.

2017 2018 2019 2020 2021
Exports from countries outside the EU (million EUR) 2,737.8 3 187.5 2,917.8 2,665.0 2,522.5
Imports to countries outside the EU (million EUR) 3,828.4 3,617.7 3,273.2 2,316.0 3,565.7
Balance with non-EU countries (million EUR) -1,090.5 -430.2 -355.4 349 -1,043.2

Source: EIU, Eurostat

Foreign direct investment

After a dramatic drop in the volume of foreign direct investment (FDI) in 2020, which was most affected by the pandemic, there was a 77% increase in global FDI in 2021, to approximately 1.65 trillion. USD, which is even more than it was before the pandemic. The largest increase in FDI was recorded by developed countries, to which more than 777 billion USD went in 2021. Although the increase in the volume of FDI also affected developing countries, as there was an increase of more than 30% compared to 2020, Africa still ranks last among world regions as an FDI destination.

According to the latest report of the United Nations Conference on Trade and Development (UNCTAD), which regularly monitors world trends in FDI, in 2020 FDI in Namibia decreased by approximately 60%. Most FDI in Namibia is traditionally directed to the mining industry, namely to the mining of uranium, diamonds, zinc, copper and oil. Investments in so-called green hydrogen are gaining in importance and will continue to gain in the coming years. Among the largest investors in Namibia are neighboring South Africa, the UK, the USA and Germany. President Hage Geingob has recently introduced a number of policies aimed at strengthening the Namibian economy, but many of them largely limit investment opportunities for foreign entities, especially in the field of mining and related activities. The protection of property rights in Namibia is guaranteed by the constitution, but parliament has the power to expropriate or limit these rights in the case of foreigners. The Namibia Investment Center is an agency of the Ministry of Industry and Trade in Namibia to support investors and FDI.

ZÚ Pretoria does not record any direct foreign investments by Czech companies in Namibia.

FTAs and treaties

Treaties with the EU

As a member country of the Southern African Development Community (SADC), Botswana is part of the Economic Partnership Agreement between the European Union and SADC (the so-called EU-SADC EPA), which entered into force in 2016, and which eliminated the vast majority of tariffs. This agreement contributed to an increase in mutual trade. The country is a signatory of the so-called Cotonou Agreement, which covers trade, development and political cooperation between the European Union and the countries of Africa, the Caribbean and the Pacific. In April 2021, negotiators from the EU and the Organization of African, Caribbean and Pacific States initialed a future agreement to replace the Cotonou Agreement.

Contracts with the Czech Republic

The Czech Republic does not have any valid bilateral international agreements with Namibia. The Czechia is also not negotiating any bilateral agreement with Namibia.

Developmental cooperation

Namibia is a signatory of the so-called Cotonou Agreement, which covers trade, development and political cooperation between the European Union and African, Caribbean and Pacific countries. In April 2021, negotiators from the EU and the Organization of African, Caribbean and Pacific States initialed a future agreement to replace the Cotonou Agreement. The ongoing development programs will thus continue. In addition to the bilateral development cooperation program implemented with the funds of the European Development Fund (EDF), Namibia also uses programs that are implemented through private companies and non-profit organizations. Under the EDF, Namibia has been allocated a total of €68 million for the period 2014 to 2020 in the areas of agriculture, education support, civil society and public sector reforms. EDF funds will continue to be used in the current budget period. on the website of the European Commission. The European Investment Bank (EIB) focuses on supporting projects in the field of infrastructure, water management and energy in Namibia . Information about grants and development projects of the EU Delegation is also published on the website of the Delegation of the European Union in Windhoek.

Prospective fields of study (MOP)

The map of global industry opportunities prepared by the Ministry of Foreign Affairs in cooperation with the Ministry of Industry and Trade and PaulTrade does not process the market in Namibia.

Namibia Trade