Trade balance shoots to P6.5bn in 2013
Mbongeni Mguni | Friday March 28, 2014 14:11
According to data released on Wednesday afternoon, the merchandise trade figures are a far cry from the P16.4 billion deficit recorded in 2012 when only one month was in surplus. The local economy has recorded rolling merchandise trade deficits month-on-month since the third quarter of 2008 owing to a collapse in mineral exports, particularly diamonds.
The figures indicate that eight out of the 12 months of 2013 were in the black, with the trade surplus peaking in July at P2.6 billion. The largest trade deficit was recorded in June at P1.1 billion.
According to Stats Botswana’s figures, merchandise exports amounted to P65.3 billion in 2013, exceeding imports of P58.8 billion.
The figure indicate that diamonds - both rough and polished - underpinned exports last year, being measured at P54.3 billion and accounting for 82 percent of total exports. Local mines reported increases in production and sales during 2013, with Debswana ramping up production by 12 percent to 22 million carats. For years, the diamond giant’s principals have maintained a policy of capping production to match market demand.
De Beers, Debswana’s parent company, has also expressed optimism about global demand for the precious stones this year. Another local diamond producer, Lucara Diamonds, saw average prices for its stones rise at its Karowe mine from US$225 per carat in the fourth quarter of 2012, to US$431 by the last quarter of 2013.
Other strong exports for the year include copper and nickel at P4.6 billion, machinery and electrical equipment at P1.2 billion and meat and meat products at P1 billion. Stats Botswana figures also indicate that diamonds were again the biggest import item in 2013, being measured at P13.2 billion. Diamonds feature on both import and export schedules as stones from the De Beers mines worldwide are first brought into Botswana for sorting, valuing, aggregation and auction before export.
Other top items on the annual import bill include fuel at P10.8 billion, machinery and electrical equipment at P7.6 billion, food, beverages and tobacco at P6.4 billion and chemical and rubber products at P5.8 billion.
Further statistics from the data agency indicate that the trade balance took off to a good start in the New Year, recording a P721 million surplus for January, driven by diamond exports of P3.6 billion.
Statistics Botswana is expected to revise all trade figures within the next two months due to the methodology used in capturing the passage of goods across borders.