The Governments of the Republic of Zambia and Namibia have signed Memoranda of Understanding (MoUs) to boost trade and industrial cooperation.
This significant step was taken during a Trade Bilateral Ministerial Meeting held on 5th September 2023. The MoUs cover fields of Industrial Development Cooperation, Competition, and Standards.
“The Bilateral Trade Ministerial Meeting holds great importance in charting a productive course for trade and investment between our closely related nations. I am pleased to announce that we are on the verge of formalizing several Memoranda of Understanding (MoU) between our Government and various agencies. This step is synonymous with a substantial boost to the expansion of our trade relations,” said Hon. Rodney Sikumba, Acting Minister of Commerce, Trade, and Industry of Zambia.
For her part, the Minister of Industrialization and Trade of the Republic of Namibia, Hon. Lucia Lipumbu, echoed these sentiments, emphasizing the continuous effort to strengthen bilateral relations.
The meeting followed an earlier session that took place in February 2023, which was itself preceded by a Business to Business session between the Zambian and Namibian Business Communities.
The Government of the Republic of Zambia, under the leadership of His Excellency Mr. Hakainde Hichilema, President of the Republic of Zambia, has been emphasizing economic diplomacy, aiming to foster harmonious trade relations with partner nations.
Zambia-Nambinia Trade and Investments
According to the Observatory of Economic Complexity (OEC), bilateral trade between Zambia and Namibia in 2021 amounted to USD 216.3 million.
Of this, Zambia exported USD 93.3 million worth of goods to Namibia, while Namibia exported USD 123 million worth of goods to Zambia.
Zambia’s main exports to Namibia in 2021 included: electricity (USD 71.8 million), soybean meal (USD 5.8 million), and insulated wire (USD 4.74 million)
Namibia’s main exports to Zambia in 2021 included: non-fillet frozen fish (USD 107 million), gypsum (USD 2.73 million), and nitrogenous fertilizers (USD 1.93 million)
According to the United Nations Conference on Trade and Development (UNCTAD), Foreign Direct Investment (FDI) flows from Namibia to Zambia in 2021 amounted to USD 19 million.
This represents a significant increase from the previous year, when FDI flows from Namibia to Zambia were just USD 2 million.
The main sectors attracting FDI from Namibia to Zambia in 2021 were: financial and insurance services, manufacturing, and mining and quarrying.