Namibia’s informal cross-border trade sector has seen a significant drop in total trade since 2019, with a 46.8% decrease in activity. According to the latest report by the Namibia Statistics Agency (NSA), informal trade fell from N$19.4 million in September 2019 to N$10.3 million by November 2023. Despite this decline, some border posts, particularly Oshikango, have maintained their key role in the country’s trade network.
Oshikango continues to dominate as the leading border post for informal trade, accounting for N$4.4 million in exports, which represents 33.6% of all exports recorded. It also contributed significantly to the country’s imports, with N$397,000, amounting to 33.6% of Namibia’s total informal imports. The Oshikango Border Post maintained a trade surplus of N$4 million, reinforcing its strategic importance in Namibia’s cross-border trade with Angola.
Katima Mulilo followed closely as the second most active border post, contributing N$2.8 million in exports, which represented 31.0% of the total exports, while its imports accounted for 5.6% (N$66,000). In total, trade at Katima Mulilo reached N$2.9 million, with the post reporting a trade surplus of N$2.8 million.
Omahenene was another notable border post, contributing 16.1% (N$1.5 million) of Namibia’s total informal exports. However, it accounted for a significant share of imports as well, with 31.2% (N$368,000) of total imports. This led to a total trade volume of N$1.8 million and a trade surplus of N$1.1 million.
Sarasungu reported the lowest export share of all surveyed border posts, contributing only 4.5% (N$407,000) of exports. However, the post handled 29.6% (N$349,000) of the country’s imports, resulting in a total trade of N$756,000 and a small surplus of N$58,000. Despite its smaller scale, Sarasungu still played a role in the informal trade sector.
The report highlighted that exports dominated informal cross-border trade, accounting for 88.5% (N$9.1 million) of total trade, while imports represented just 11.5% (N$1.2 million). Overall, Namibia achieved a trade surplus of N$7.9 million during the period under review, and no trade deficits have been recorded since the inception of the NSA’s Informal Cross Border Trade Survey.
In terms of participation, the survey involved 25,765 traders, with the majority being exporters. Approximately 82.7% of traders (21,302 individuals) were involved in exporting goods, while only 17.3% (4,463 traders) focused on imports. Notably, male traders played a significant role in exports, contributing N$6.0 million, compared to N$4.3 million by female traders. However, female traders dominated the import sector, controlling 71.5% of all imports.
A breakdown of the data revealed that men were responsible for 62.1% of the total value of informal exports, while women accounted for 37.9%. This reflects the continuing gender dynamics in informal trade, where male traders often dominate exports, while women are more active in importing goods.
Angola emerged as Namibia’s largest informal trade partner, accounting for 69.0% of Namibia’s exports and a staggering 94.4% of the country’s imports. Zambia, meanwhile, contributed the remaining 31.0% of exports and 5.6% of imports.
Key export commodities during this period included sugar, cereal flours, and baked goods. On the import side, cereal grains, vegetables, and pasta were the leading products, showcasing the diverse range of goods traded between Namibia and its neighboring countries.
Despite the drop in total trade, Namibia’s informal cross-border trade sector remains vital, especially with its positive trade surplus and active participation across key border posts. The ongoing activity at Oshikango, Katima Mulilo, and other border posts highlights the resilience and importance of informal trade in the country’s economy.
Despite the drop in total trade, Namibia’s informal cross-border trade sector remains vital, especially with its positive trade surplus and active participation across key border posts. The ongoing activity at Oshikango, Katima Mulilo, and other border posts highlights the resilience and importance of informal trade in the country’s economy.
