Data by Statistics Botswana (SB) indicate that for the month of August 2024, Botswana’s export earnings fell by 18.4 percent (P652.7 million) from the revised July 2024 figure of P3, 549.9 million to P2, 897.2 million in August 2024. The latest International Merchandise Trade Statistics Monthly Digest August 2024 showed that exports across all principal commodity groups experienced contractions.
The diamonds group played a pivotal role in the overall decrease of total exports, dropping by 28.5 percent (P528.8 million) from a revised July 2024 value of P1, 852.3 million to P1, 323.5 million in the current month.
The government revenues have been suppressed owing to significant decline in diamonds sales globally, a move that recently forced Debswana Diamond Company to implement costs cutting measures across all business functions.
On Trade Balance, the statistics agency said since September 2023, Botswana has consistently recorded a trade deficit, adding that in August 2024, the country recorded its largest deficit of the year 2024, amounting to P5, 7 billion.
Meanwhile, in August 2024 Botswana received imports valued at P8, 639.5 million with the leading imported commodity groups being Fuel; Diamonds; Food, Beverages and Tobacco; Machinery and Electrical Equipment and Chemicals and Rubber Products.
According to Statistics Botswana, Fuel accounted for 18.6 percent (P1, 602.8 million), followed by Diamonds and Food, Beverages and Tobacco at 17.6 percent (P1, 521.9 billion) and 15.4 percent (P1, 327.1 million) respectively.
On the other hand, Machinery & Electrical Equipment and Chemicals and Rubber Products contributed 13.4 percent (P1, 153.7 million) and 10.1 percent (P876.6 million) to total imports, respectively.
IMPORT MARKETS
Meanwhile, the Southern African Customs Union (SACU) region was the primary source of imports, supplying 73.9 percent (P6, 384.0 million) of the total imports. The top most imported commodity groups from the customs union were; Food, Beverages and Tobacco, which contributed 18.6 percent (P1, 186.5 billion), Fuel and Diamonds, at 16.9 percent each at (P1,078.4 billion) and (P1,080.0 million).
The statistics agency said Machinery and Electrical Equipment and Chemicals & Rubber Products accounted for 11.3 percent (P718.9 million) and 10.3 percent (P660.7 million) to total imports from the union, respectively.
South Africa and Namibia were the largest source of imports from the SACU region with 59.2 percent (P5, 116.3 million) and 13.9 percent (P1, 202.1 million) respectively.
“Asia supplied Botswana with imports worth P587.0 billion equivalent to 6.8 percent during August 2024. The major commodity groups imported were Machinery and Electrical Equipment and Chemicals and Rubber Products with contributions of 33.5 percent (P196.5 billion) and 18.0 percent (P105.9 million) of total imports from the block, respectively,” said SB. Furthermore, China supplied imports worth 3.7 percent (P318.5 billion) of total imports during the period under the review.
During the month under review, imports representing 71.2 percent (P6, 152.5 million) were transported into the country by Road. Goods imported by Air and Rail accounted for 18.1 percent (P1, 560.0 million) and 10.7 percent (P927.0 million) respectively.
“Goods valued at P1, 482.8 million, representing 51.2 percent of total exports, left the country by Road while those exported by Air and Rail accounted for 48.0 percent (P1, 389.9 million) and 0.8 percent (P24.6 million), respectively,” SB added.