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CONSIDERED a source of living for many informal settlement residents and the homeless, scrap metal has pushed up a N$35 million export bill in August, and over N$1 billion over the last three years.

The industry which typically is made up of ferrous and non-ferrous metals, and Namibia has participated in it largely on the export side.

Core exported metals are those that contain some residue of steel, iron, aluminium, copper, lead, nickel, tin, titanium and zinc.

Copper alloys like brass and bronze are also part of the package and are mainly salvaged from tin cans, old electric appliances, old vehicles and construction industry tools.

These are mainly exported to South Africa, because Namibia’s recycling industry is still relatively at its infancy.

Uptake by local entrepreneurs has improved of late, however, Scrap Salvage, a privately owned company, controls a big portion of the scrap metal industry.

The homeless and scrap metal dealers line up and drop off scrap metals at their designated industrial warehouses countrywide on a daily basis.

Upcoming businesses, such as John Henry Waste Management CC, which employs around 14 people, has also earned its place in the industry.

Owner Alejandro van den Heever says despite abundant waste, recycling machines are not available in the country.

Data from the Namibia Statistics Agency (NSA) shows that most scrap metals are exported by sea, and sometimes by road.

TRADE BALANCE

Namibia was still on the negative end of the trade balance in August, incurring a trade deficit of N$2,9 billion.

Exports for the month were recorded at N$7,2 billion, while imports sat at N$10,1 billion.

Trade deficits are not new to the local economy, however, there have been improvements in certain months in certain goods.

Data from the NSA shows that, despite the overall trade deficit, minerals especially have recorded export figures way above imports.

Other strong export figures, when compared to imports, have been recorded for art, which saw the month of August hitting exports worth N$15 million, while imports stood at N$6 million.

Live animals ran up an export bill of N$109 million, compared to an import bill of just N$4 million.

Stone, sand and gravel, meat, leather, wood charcoal, pulp and waste paper showed surplus trade balances at product level.

Out of the 255 product classes, less than 30 recorded more exports than imports – and Namibia remains a chronic importer.

Analysts at Simonis Storm Securities say persistent trade deficits after the Covid-19 pandemic imply that Namibia consumes and invests more than it produces.

Year to date, the monthly trade deficit for January to August averages N$3,1 billion, compared to N$2,2 billion for the same period last year.

Exports and imports decreased by 13,1% month on month, and 9,2% month on month, respectively, in August.

Manufacturing accounted for 48,6%, while mining had 46,0% of Namibia’s exports, decreasing by 14,3% month on month and 11,3% month on month, respectively, in August.

The main export destinations during August were Botswana, accounting for 22,2%, South Africa 18,0%, China 10,1%, Zambia 8,5%, and the United Arab Emirates 7,1%.

“Going forward, a deteriorating global outlook will weigh heavily on Namibia’s export potential. Already, factory orders are declining in some of Namibia’s main export markets, where factory orders have decreased by 8,3% in the United States, 0,6% in China and 46,3% in the European Union year to date,” analysts say.

But there could be a way out – exporting more.

Commodity exports in Namibia improved only from May onwards, when global metal prices started moderating following the outbreak of Russia’s war in Ukraine.

Data indicates that Namibia missed the opportunity of improved commodity exports earning higher prices.

“This implies that if local production and exports improved earlier, export earnings and taxes paid to the government could have been higher,” Simonis says.

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