Data recently released by Statistics Botswana as part of its International Merchandise Trade Statistics October report reveals a 49.3% fall in total exports for the month and indicates that the country is likely to have ended 2019 with a large trade deficit, according to media reports. The quantum of the final deficit will only be revealed after figures for November and December are published, the reports added.

For the month of October, total exports stood at P2.2 billion, well below the P4.3 bn in September, on the back of a 54.2% fall in the export of diamonds, which constitute nearly 80% of the total export basket. The country’s monthly trade deficit reached P3.4 billion in October, making it the second largest shortfall so far recorded in 2019, as per the news reports.

This was despite a 25.9 drop percent in total imports, most of which was accounted for by a decline in rough diamond imports from other countries in Africa and Canada. It may be recalled that De Beers, which mines diamonds in Namibia, South Africa and Canada, besides Botswana, imports the rough into Botswana for aggregation and subsequent sale at its sights which are now held in Gaborone.

Exports of diamonds have dropped significantly over the last few months for which figures were available due to the crisis that affected the industry in the latter half of 2019, it was stated.

India is a significant trade partner, with a 28.8% share in the country’s exports. Botswana exported P623.2 million worth of diamonds to India, and P403.5 million to United Arab Emirates. Belgium, which is Botswana’s biggest EU partner with rough diamond imports worth P317.5 million, Israel with P178 million and Hong Kong with P83 million constitute the rest of the top five importers of diamonds.

According to Statistics Botswana, the trade deficit in Q3 2019 reached a level of P5.2 billion, the highest deficit in a quarter since 2008.