TRADE BALANCE ANALYSIS FOR MAY 2026
Namibia’s trade deficit narrowed meaningfully in May 2026, improving to N$3.1 billion from N$4.4 billion recorded in April 2026. Total merchandise trade reached N$27.9 billion, with the import cover ratio exports as a share of imports at 79.9%, a sharp deterioration from 101.0% in May 2025 when Namibia recorded a modest trade surplus. The improvement was driven by a 25.9% month-on-month rebound in export earnings to N$12.4 billion, while imports rose a more moderate 9.3% to N$15.5 billion. Year-on-year, exports increased by 6.6% while imports surged by 34.6%, reflecting a structural acceleration in import demand. The export recovery was led by uranium (up N$1.3 billion month-on-month), non-monetary gold, and fish, with re-exports also surging to N$3.3 billion from N$2.2 billion in April, a 49.8% month-on-month increase.
On a cumulative basis, Namibia’s 2026 exports amounted to N$53.4 billion through May, ahead of the N$52.2 billion recorded over the same period in 2025, while cumulative imports stood at approximately N$68.3 billion, significantly above the prior-year figure. The cumulative trade balance remains firmly in deficit, reflecting how year-to-date import volumes have significantly outpaced export growth across every month of 2026.
The export basket in May 2026 was led by mining and quarrying (53.5% of total exports at N$6.6 billion), with manufacturing in second position at 42.8% (N$5.3 billion). Uranium emerged as the single largest export product (22.3% at N$2.8 billion), followed by fish (11.4% at N$1.4 billion), precious stones and diamonds (10.8% at N$1.3 billion), non-monetary gold (10.8% at N$1.3 billion), and nickel ores and concentrates (7.7% at N$952 million, all re-exports). Together, these top five exports accounted for 63.0% of total exports, reinforcing the narrow and mineralconcentrated composition of Namibia’s export base. On the import side, Namibia continued to display strong dependence on foreign energy and industrial inputs.
Petroleum oils (21.3%) surged to become the largest import item at N$3.3 billion, followed by nickel ores and concentrates (7.7% at N$1.2 billion), motor vehicles for goods transport (3.7% at N$575 million), sulphur and unroasted iron pyrites (3.3% at N$520 million), and motor vehicles for persons (2.4% at N$380 million). The spike in petroleum imports was the single largest driver of the yearon-year import increase.
- Exports
- Imports
Navigating between East and West: Namibia’s trade partnerships at a crossroads
May 2026’s trade data delivered a historic shift: China displaced South Africa as Namibia’s single largest export destination, receiving N$3.1 billion in goods 25.2% of total exports. South Africa, which has held the top position for decades, fell to second at 18.7%. This inversion did not occur in isolation. It coincided with the run-up to President Netumbo Nandi-Ndaitwah’s state visit to Beijing from 5 to 11 July 2026 her first major bilateral engagement as Head of State and a signal of where Namibia’s foreign economic policy is heading. The visit produced a series of agreements covering infrastructure financing, green hydrogen cooperation, agricultural trade facilitation and expanded market access for Namibian fish and beef. At the core of the agenda was deepening the Comprehensive Strategic Cooperative Partnership signed in 2018, now elevated to reflect Namibia’s status as a founding member of the Forum on China-Africa Cooperation (FOCAC) and one of China’s most valued mineral partners on the continent. The May surplus with China of N$1.5 billion, driven by uranium, fish and diamonds, underscores how consequential this relationship has become for Namibia’s export revenues.
Against this deepening Eastern partnership, Namibia’s relationship with the United States is under strain. The African Growth and Opportunity Act (AGOA), the cornerstone of US-Africa trade preferences, expires in December 2026, and Congress has yet to pass a renewal. AGOA has provided duty-free access on over 6,500 product lines to qualifying sub-Saharan African countries, and Namibia has benefited particularly in fish and seafood exports. The uncertainty is compounded by the broader shift in US trade posture under the current administration, which has imposed a wave of tariffs on trading partners globally and signalled a more transactional approach to African engagement. While Namibia is not among the primary targets of US tariffs, the indirect exposure through commodity price disruption, particularly if US tariffs dampen global demand for metals and through potential AGOA conditionality changes, is real. Namibian officials have raised concerns privately that the December 2026 deadline may slip, potentially exposing fish exporters to the standard 0–15% US Most Favoured Nation (MFN) tariff rates at the margin.
The simultaneity of these two developments China’s rise to top-export-partner status and AGOA uncertainty, places Namibia at a genuine crossroads. May’s data show that BRIC+ countries now absorb 28.4% of Namibia’s exports, almost exactly matching SACU at 29.8%, while OECD countries account for 21.9%. This is a dramatic departure from the trade geography of even five years ago, when OECD and SACU dominated. The structural pull toward China is partly driven by uranium China’s rapidly expanding nuclear fleet requires increasing volumes of yellowcake and partly by Namibian diamonds re-exported through Chinese supply chains. However, the relationship also carries structural risks: Namibia exports raw commodities eastward and imports manufactured goods westward from China, perpetuating the very pattern of low-value-add trade that government’s industrial policy seeks to break. The N$1.5 billion surplus with China masks an asymmetry in the terms of trade that will compound over time unless Namibia can capture more processing value domestically.
Namibia’s diplomatic balancing act is a rational response to a multipolar world but it carries real execution risk. The West particularly the EU through its Critical Raw Materials Act and Germany through its raw materials partnership is actively competing to lock in African mineral supply chains on terms that require local processing and adherence to environmental, social, and governance standards. China’s engagement model has historically been faster, less conditional, and more willing to finance infrastructure in exchange for commodity access. Both have something to offer Namibia and President Nandi-Ndaitwah’s government has signalled it intends to engage both simultaneously rather than choose. This is sometimes characterised as strategic non-alignment, but it is more accurately strategic portfolio diversification: Namibia is hedging its export dependence across multiple geopolitical blocs while using the competitive bidding between them to secure better terms. The risk is that this approach works best when both sides remain eager a US retreat from African engagement via AGOA non-renewal could reduce Namibia’s leverage and accelerate a de facto tilt toward China by default rather than by design.
The medium-term trade trajectory will be shaped by decisions taken in 2026 and 2027. If AGOA lapses without renewal, Namibia’s seafood and apparel exporters will face an adjustment challenge and the incentive to deepen China-oriented supply chains will intensify. If the Beijing visit translates into concrete infrastructure and processing investment particularly in uranium conversion or fish processing then the shift in Namibia’s trade geography will have been accompanied by genuine value-chain gains rather than simply a reorientation of raw commodity flows. The challenge for policymakers is to ensure that the deepening of the China relationship is structured around terms that advance Namibia’s industrialisation agenda: local content, skills transfer and processing investment. At the same time, active engagement with the US on AGOA renewal and with the EU on the Critical Raw Materials partnership must continue, because the leverage Namibia holds today as a politically stable, mineral-rich nation with a green hydrogen strategy and credible governance is at its peak. The trade data for May 2026 has quantified the shift. The diplomatic and industrial challenge is to manage it on Namibia’s terms.
