Fuel import bill shoots to P1.2bn

Brian Benza | Wednesday July 2, 2014 07:00

 

According to trade figures recently released by Statistics Botswana, fuel imports were valued at P1.2 billion in April this year up from P724 million in January.

Diamonds, which have traditionally dominated import commodities, were valued at P870 million in April down from P1.6 billion in January.

“Composition of imports by principal commodities for April 2014, shows that fuel contributed the highest at 25.2 percent (P1,2 billion) to total imports, followed by diamonds with 18.7 percent (P876.0 million), machinery and electrical equipment with 12.9 percent (P606.7 million),” read the April Botswana International merchandise Statistics Report.

With a monthly bill of P475 million, food and beverages were the fourth largest import commodity in the month.

On average Botswana, consumes about 850 million litres of fuel per annum, 76 percent of which is imported through South Africa.

Imports for April 2014 were valued at P4.7 billion, with 70.3 percent (P3.3billion) coming from South Africa. Canada supplied imports valued at P655.6 million, which is 14.0 percent of total imports for the month under review. On the other hand, total exports for April 2014 were valued at P5.2 billion, with 50.4 percent (P2.6 billion) destined to Asia. 

In the month 84.9 percent (P4.4 billion) was attributed to exports of Diamonds. The diamond trade is for both rough and polished diamonds. “However, it should be noted that diamond exports for January 2013 to April 2014 are for rough diamonds originating from Botswana plus those from diamonds processing companies only. Re-exports of diamonds from aggregation process are not included in the January 2013 to April 2014 data,” said Statistics Botswana.

Copper and nickel were the second highest exports contributed 4.9 percent (P254.8 million), while vehicles & transport equipment and machinery & electrical equipment contributed 2.3 percent (P118.6 million) and 2.0 percent (P103.4 million) respectively.

The difference between exports and imports translated into trade surplus of P463.6 million for the month of April. 

In 2013, Botswana recorded an annual trade surplus of P2 billion for the first time since 2007. This was mainly driven by increased exports, with sharp increases in exports of meat, copper-nickel, and rough and polished diamonds, which more than compensated for the poor performance of exports of textiles and vehicle parts.

It is estimated that total exports increased by 39 percent in 2013, compared to an increase of 2 percent in imports, in particular, exports of diamonds rose by 46 percent to P52 billion, due to high volumes and prices, as well as the impact of the pula depreciating against the dollar.

Sales of cut and polished diamonds increased by 22 percent to 6.6 billion in 2013, thus accounting for 12.6 percent of total diamonds exports. Exports of copper and nickel increased by 35 percent while beef rose by 95 percent.