Diamonds contribute the highest total imports in January
Pauline Dikuelo | Thursday April 30, 2015 16:48
This was followed by fuel which contributed P728.7 million, machinery and electrical equipment, food, beverages and tobacco which each contributed 13.5 percent to total imports with P601.1 million and P600.7 million respectively.
Total imports recorded 0.4 percent increase by January this year compared to December last year when imports were valued at P44.2 billion. Revision data also indicate that months of August, September and October last year recorded a small increase of 0.1 percent with P45 million.
Discussions on imports are based on cost, insurance and freight value.
Regionally, South Africa has been indicated to be the major trading partner with Botswana at about 75 percent of imports valued at P33.5 billion coming from it.
In the second place is Namibia with P42.8 million which is equivalent to one percent.
During the period under review, imports from Asia were valued at P323 million representing 7.3 percent of total imports.
China and Israel contributed 1.9 percent and 1.4 percent respectively to total imports recorded during January 2015.
The European Union (EU) supplied imports valued at P306million representing 6.9 percent of total imports during January 2015. Belgium and Germany respectively contributed 5.6 percent or P160.1 million and 1.6 percent or P70.6 million total imports during the same period.
Imports from Canada, the United States of America (USA) and Switzerland were valued at P208 million, P101.2 million and P72.6 million in January 2015 representing 4.7 percent and 2.3 percent respectively of total imports during the month.
However, currently government has been working on a strategy to reduce the import bill and build a sustainable economy.
Recently all central government departments, local authorities and parastatal organizations were directed to procure all their goods and services from locally based manufacturers, service providers and agricultural producers.
This initiative is also expected to promote both domestic and foreign investment into the country.
As part of promoting domestic industries, government has also, effective this month, banned the importation of less than 100 kilogrammes of packaged salt in a move aimed at stimulating domestic production and in turn creating employment.
The decision was taken in consideration of the fact that the raw material is available locally and the need to develop the value chain of the specific sector. Early this year, Minister of Trade and Industry, Vincent Seretse, said EDD had injected P15 billion into local businesses since its inception five years ago.
Over P7 billion of this amount represents purchases from local manufacturers and service providers, as at the end of January this year, a cumulative value of over P2 billion worth of purchases were recorded for the financial year 2014/2015.
A trade surplus of P13.3 billion was recorded in January.
Total exports for January were valued at P57.7 billion with 84.2 percent attributed to diamond exports.
The values of the total exports included diamonds derived from aggregation process, which are not produced by Botswana only. By December last year, exports recorded 4. 2 percent increase with the value of P55. 3 million.
During the month under review, South Africa and Namibia received P960. 6 million and P708.5 million respectively of total exports.
Copper Nickel contributed 7. 2 percent, which is P418.3 million, while machinery and electrical equipment, vehicles and transport equipment contributed P120.1 million and P84.2 million respectively. Machinery and electrical equipment consists mainly of re-export of goods that were initially imported.
Singapore received most of the exports destined for Asia at the value of P745 million representing 12.9 percent of total exports. India, follows with 10.7 percent ahead of Israel and Hong Kong with contributions of 4.5 percent and 3.4 percent respectively.
Exports destined to the EU were valued at P10.7 billion representing 18.6 percent of total exports during the period under review. Belgium received most destined exports to EU, having received 16.6 percent of total exports during January 2015.
This was followed by Finland with 1.5 percent, which is equivalent to P89.1 million of total exports during the same month.