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1. Multidimensional Energy Poverty for Botswana: Does gender matter?

Author:
Thabile A. Samboma, Khaufelo R. Lekobane, and Koketso Molefhi
Publication Date:
09-2025
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The energy-gender nexus is a topical issue that has gained traction among researchers and policymakers. Access to clean energy and gender equality are two of the most crucial sustainable development goals (SDGs) that affect households directly. Notwithstanding this, the gendered analysis of multidimensional energy poverty has been minimal in the empirical literature. Using the 2015/16 Botswana multi-topic household survey, this study investigates the gendered dimensions of energy poverty in Botswana, emphasising the disparities in energy access and affordability between male and female-headed households. We employed the Alkire-Foster (AF) methodology to compute our aggregate multidimensional energy poverty index (MEPI). Overall, we find that in Botswana, the gender gaps in multidimensional energy poverty levels are more than 10% for the poverty incidence and adjusted headcount ratio. This suggests that energy poverty in Botswana seems to be feminised. However, the gender gap in the intensity of multidimensional energy poverty is lower than 3% in favour of femaleheaded households. Finally, substantial gender gaps exist across household demographic characteristics, human capital, economic variables, and geography. The findings suggest that while Botswana has made significant progress in promoting renewable energy access through initiatives such as the Photovoltaic Rural Electrification Programme, gender-specific barriers remain. The study recommends enhanced policies that integrate gender considerations to foster equitable energy solutions, ensuring that all households, irrespective of the gender of the household head, can thrive in a sustainable and energysecure environment.
Topic:
Poverty, Sustainable Development Goals, Energy, and Gender Equality
Political Geography:
Africa and Botswana

2. Tobacco Control in Botswana: Effectiveness of Tax Changes in Reducing Tobacco Demand

Author:
Tshepiso Gaetsewe and Goitseone Khanie
Publication Date:
06-2025
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
Botswana has one of the highest adult tobacco-use rates in the WHO African Region. Despite measures and policies put in place to control tobacco consumption, there is still a widespread use of tobacco products in the country. This is because demand for tobacco and tobacco products is mostly affected by changes in tobacco prices and related taxes. This study therefore seeks to analyse the responsiveness of cigarette demand to price changes in Botswana. This is done by estimating the conditional price elasticity of cigarette demand using Deaton’s model and the Botswana Multi-Topic Household Survey (BMTHS) data of 2015/16. The cigarette price elasticity of demand in Botswana is estimated to be -0.86. The results indicate that a 10% increase in the price of cigarettes will reduce cigarette demand by 8.6% among smokers. These findings provide the first scientific evidence of conditional elasticity on consumption for policymakers in Botswana. These findings are expected to guide policymakers and those involved in tobacco control in formulating the most effective policies for regulating and controlling the consumption of tobacco in Botswana.
Topic:
Tax Systems, Tobacco, and Price Elasticity
Political Geography:
Africa and Botswana

3. Factors Influencing the Probability of Being Left Behind: A Multidimensional Poverty Approach for Botswana

Author:
Khaufelo R. Lekobane
Publication Date:
07-2024
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The Leave No One Behind principle is an important dimension of the 2030 Agenda for Sustainable Development. It recognises data disaggregation as a vital tool to identify the multidimensionally poor (those left behind). Using the 2015/16 Botswana Multi-Topic Household Survey, we investigate factors influencing the probability of being left behind. We define those left behind as the multidimensionally poor. We employed the multidimensional poverty measure to identify those left behind. Our study uses several econometric estimation techniques, such as Tobit, quantile regression and OLS regression models, in addition to the binary logit model commonly used in the empirical literature. The results reveal that an individual’s age, disability status, citizenship, sex of household head, marital status, education, employment status of household head, household wealth status and place of residence are significant factors influencing the probability of being left behind (multidimensionally poor). Policymakers should design context-specific, action-oriented and nationally appropriate policies and programmes that consider factors influencing the probability of being left behind and promote sustainable and inclusive development.
Topic:
Poverty, Sustainable Development Goals, and Regression Analysis
Political Geography:
Africa and Botswana

4. Factors Influencing the Probability of Being Left Behind: A Multidimensional Poverty Approach for Botswana

Author:
Khaufelo R. Lekobane
Publication Date:
07-2024
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The Leave No One Behind principle is an important dimension of the 2030 Agenda for Sustainable Development. It recognises data disaggregation as a vital tool to identify the multidimensionally poor (those left behind). Using the 2015/16 Botswana Multi-Topic Household Survey, we investigate factors influencing the probability of being left behind. We define those left behind as the multidimensionally poor. We employed the multidimensional poverty measure to identify those left behind. Our study uses several econometric estimation techniques, such as Tobit, quantile regression and OLS regression models, in addition to the binary logit model commonly used in the empirical literature. The results reveal that an individual’s age, disability status, citizenship, sex of household head, marital status, education, employment status of household head, household wealth status and place of residence are significant factors influencing the probability of being left behind (multidimensionally poor). Policymakers should design context-specific, action-oriented and nationally appropriate policies and programmes that consider factors influencing the probability of being left behind and promote sustainable and inclusive development.
Topic:
Poverty, Sustainable Development Goals, and Regression Analysis
Political Geography:
Africa and Botswana

5. Children with disabilities: Left behind or forgotten? Empirical evidence from Botswana using multidimensional poverty measures

Author:
Khaufelo R. Lekobane and Thabile A. Samboma
Publication Date:
10-2023
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The 2030 Agenda for Sustainable Development recognises of the importance multidimensional poverty and disability. Although there is compelling evidence suggesting that people with disabilities have a higher probability of being poor, studies that compare children with disabilities with their non-disabled peers remain scarce and limited to developed countries. Using the 2015/16 Botswana multi-topic household survey, we examined the link between childhood disability and multidimensional child poverty in Botswana. The study employs the conceptual framing of the capability and human rights-based approaches. Results reveal significant disparities in poverty levels between children with disabilities and their non-disabled peers across demographic, economic and geographical variables, with children living with disability experiencing higher poverty levels than their non-disabled counterparts. We, therefore, argue that deliberate efforts should be put in place for children with disabilities to have equal opportunities to catch up with the rest of the children in order not to be left behind. The paper further provides policy implications for childhood disability and multidimensional child poverty research in Botswana.
Topic:
Sustainable Development Goals, Child Poverty, and Disability
Political Geography:
Africa and Botswana

6. Child Sexual Abuse in Botswana: An Evaluation of The Effectiveness of Child Protection Institutions in selected villages

Author:
Thabile A. Samboma
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
Child Sexual Abuse (CSA) in Botswana is a big social problem with proven lifelong effects on the victims. Botswana has established various child protection institutions (CPI) and amended children’s protection laws to ensure that children are safe from all harm. However, despite this development, Botswana CSA cases are still rising. This study provides the first attempt to evaluate the effectiveness of child protection institutions in Botswana. A case study method was used in Old Naledi and Letlhakeng through an indepth interview with twenty-two (22) participants. The findings of the study revealed that there is;(i) the absence of a national child strategy, (ii) poor coordination of child protection institutions, (iii) weak child legislation framework, (iv) lack of capacity, (v) inadequately financed child protection, (vi) lack of systematic data collection, (vii) lack of evidence-based research, (viii) Decline of family structure and (iv) lack of public awareness. All these combined hinder the effectiveness of child protection institutions in Botswana. The study recommends as follows: reviewing the Children’s Act of 2009, developing a national child protection strategy, strengthening coordination of CPI, increasing resource allocation, creating a centralised database on CSA and strengthening evidence-based research on CSA in Botswana.
Topic:
Children, Institutions, Protection, and Child Sexual Abuse (CSA)
Political Geography:
Africa and Botswana

7. Financing Public Private Partnerships (PPPs) in Botswana Through The Capital Market

Author:
Kelesego Mmolainyane
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
In her quest to further graduate to the high-income status, Botswana seeks to invest more in infrastructure development for both productive and social use. An efficient and effective infrastructure provision is fundamental to excellent public service delivery and access. Sadly, Botswana, like many other world economies, has a challenge of having an infrastructure financing gap. One of the innovative ways to fill this gap is through public private partnerships (PPPs) with the capital market that has excess liquidity. Infrastructure PPPs are complex and capital intensive projects that require project finance experts to advise parties involved regarding returns and risks associated with each project. Various project-financing models can be designed to suit project specifications and they cannot be over-generalised for all PPP projects. Nevertheless, given the tight fiscal space, Botswana now, more than ever, should consider issuing PPP bonds and applying user changes model to finance economic PPP infrastructure for sustainable and inclusive economic growth.
Topic:
Markets, Infrastructure, Finance, Capital, and Public-Private Partnership
Political Geography:
Africa and Botswana

8. How Non-Diamond Exports Respond to Exchange Rate Volatility in Botswana

Author:
Johanne Motsatsi
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This paper estimates the impact of exchange rate volatility on non-diamond exports in Botswana using an Autoregressive Distributed Lag (ARDL) model. The model used quarterly data for the period 1995-2018, to estimate both the long and short run dynamics. The estimated results show that real GDP in the non-diamond sector, GDP growth of OECD countries, transport investment and water & electricity investment have a positive impact on non-diamond exports. While the lending interest rate, inflation differentials, exchange rate volatility and misalignment impact non-diamond exports negatively. The findings indicate that the coefficients with respect to the exchange rate volatility in both models are relatively low, suggesting that it has not had harmful impacts on non-diamond exports. This reflects the emphasis given to a stable and competitive exchange rate that will attract increased foreign demand which, as a result, could lead to export diversification. However, Botswana’s export structure is still undiversified, despite efforts made to diversify the sector. To achieve the national objectives of sustainable export and economic diversification, the policy should continue encouraging a stable and competitive exchange rate. Other policies intended to boost export growth should focus on: expanding the production base of the non-diamond sector, committing more investment in the transport sector, and improving water & electricity infrastructure.
Topic:
Economy, Exchange Rate Policy, Exports, and Diamonds
Political Geography:
Africa and Botswana

9. Ordinary Shareholders’ Rights Protection in Botswana

Author:
Ratang Sedimo
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This study seeks to examine institutional frameworks that exist in Botswana to protect the rights of ordinary shareholders. There is no literature on the subject matter in the context of Botswana; hence this study attempts to fill in the literature gap. The study uses a variety of data collection methods, such as semi-structured interviews, the Choppies case study and lessons learnt from other jurisdictions. Findings reveal that ordinary shareholders’ rights protection involves the use of institutional frameworks. In Botswana, existing frameworks are not adequate to protect ordinary shareholders’ rights. Furthermore, the study shows that ordinary shareholders in Botswana are mainly exposed to risks of losing their investments, partially or entirely, in case of non-compliance to regulatory requirements as shown by the reduction in Choppies’ stock price from P1.20 to P0.40 between years 2012 and 2018. The study suggests that the existing institutional frameworks should be reviewed to ensure adequate protection of ordinary shareholders’ rights.
Topic:
Economy, Institutions, and Shareholder Value
Political Geography:
Africa and Botswana

10. Key Drivers of Industrial Growth A Case Study of Botswana’s Manufacturing Sector

Author:
Goitseone Khanie
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The paper examines the key determinants of industrial growth in Botswana, using manufacturing sector value added as the proxy for industrial growth. It employs the Autoregressive Distributed Lag (ARDL) cointegration approach using annual time series data for the period 1983 to 2015. Empirical results show that industrial growth is driven by financial sector development, human capital development, trade openness and foreign direct investment. Specifically, domestic credit to the private sector as a percentage of GDP and secondary school enrolment ratio are found to be significantly related to manufacturing value added as a percentage of GDP both in the long run and short run. While the relationship is limited to long run for total trade to GDP, it only exits in the short run for FDI net inflows. The study therefore recommends that policy makers should design and ensure proper implementation of financial sector development strategies that can help ease access to credit for manufacturing enterprises in the country. There is also a need for a holistic approach in the design and implementation of innovation and human resource development policies in order to provide a conducive environment for skills acquisition, innovation and technological advancements in the manufacturing sector. Trade policies and export promotion strategies should heighten productivity and value addition in the manufacturing sector, so as to make local firms internationally competitive. Finally, with regards to FDI, the Government of Botswana should create an environment that could entice multinationals to invest in the local manufacturing industry. This, however, should be coupled with protectionist policies to avoid crowding out local manufacturers and exposing them to foreign competition.
Topic:
Industrial Policy, Foreign Direct Investment, Economic Growth, Manufacturing, and Trade
Political Geography:
Africa and Botswana

11. Whistleblowing in Botswana’s Construction Industry: A Public and Private Sector Perspective

Author:
Marumo Omotoye
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The construction industry (CI) is considered one of the most corrupt both internationally and regionally. Therefore, this study examined the views and attitudes of professionals in Botswana’s CI towards the role whistleblowing (or protected disclosure) can play in curbing corruption in the sector. A convergent mixed methods approach was adopted. Semi-structured interviews were conducted with key stakeholders from the construction industry. Furthermore, a self-administered survey was utilised to collect quantitative data from 117 construction firms. Data revealed that there was little awareness of whistleblowing legislation. Fear of retaliation or punishment and job loss, and a lack of education on whistleblowing were identified as some of the most substantial barriers to effective whistleblowing in the industry. From a public policy perspective, it is recommended that an emphasis be placed on improving levels of education and awareness on whistleblowing in the construction sector. In addition, there should be consideration to amend the Whistleblowing Act 2016 to include construction industry regulators, the Public Procurement and Asset Disposal Board, and private media amongst the list of institutions authorised to receive reports of impropriety in order to extend the scope of legal protection to whistleblowers in the sector. Recommendations for further research are provided.
Topic:
Corruption, Public Sector, Private Sector, Whistle Blowing, and Construction
Political Geography:
Africa and Botswana

12. Financing Public Private Partnerships (PPPs) in Botswana Through the Capital Market

Author:
Kelesego Mmolainyane
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
In her quest to further graduate to the high-income status, Botswana seeks to invest more in infrastructure development for both productive and social use. An efficient and effective infrastructure provision is fundamental to excellent public service delivery and access. Sadly, Botswana, like many other world economies, has a challenge of having an infrastructure financing gap. One of the innovative ways to fill this gap is through public private partnerships (PPPs) with the capital market that has excess liquidity. Infrastructure PPPs are complex and capital intensive projects that require project finance experts to advise parties involved regarding returns and risks associated with each project. Various project-financing models can be designed to suit project specifications and they cannot be over-generalised for all PPP projects. Nevertheless, given the tight fiscal space, Botswana now, more than ever, should consider issuing PPP bonds and applying user changes model to finance economic PPP infrastructure for sustainable and inclusive economic growth.
Topic:
Development, Economics, Infrastructure, Finance, Public Sector, Economic Development, and Private Sector
Political Geography:
Africa and Botswana

13. Key Drivers of Industrial Growth: A Case Study of Botswana’s Manufacturing Sector

Author:
Johanne Motsatsi and Goitseone Khanie
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The paper examines the key determinants of industrial growth in Botswana, using manufacturing sector value added as the proxy for industrial growth. It employs the Autoregressive Distributed Lag (ARDL) cointegration approach using annual time series data for the period 1983 to 2015. Empirical results show that industrial growth is driven by financial sector development, human capital development, trade openness and foreign direct investment. Specifically, domestic credit to the private sector as a percentage of GDP and secondary school enrolment ratio are found to be significantly related to manufacturing value added as a percentage of GDP both in the long run and short run. While the relationship is limited to long run for total trade to GDP, it only exits in the short run for FDI net inflows. The study therefore recommends that policy makers should design and ensure proper implementation of financial sector development strategies that can help ease access to credit for manufacturing enterprises in the country. There is also a need for a holistic approach in the design and implementation of innovation and human resource development policies in order to provide a conducive environment for skills acquisition, innovation and technological advancements in the manufacturing sector. Trade policies and export promotion strategies should heighten productivity and value addition in the manufacturing sector, so as to make local firms internationally competitive. Finally, with regards to FDI, the Government of Botswana should create an environment that could entice multinationals to invest in the local manufacturing industry. This, however, should be coupled with protectionist policies to avoid crowding out local manufacturers and exposing them to foreign competition.
Topic:
Development, Economics, Economic Growth, Manufacturing, Economic Development, and Industrialization
Political Geography:
Africa and Botswana

14. Ordinary Shareholders' Rights Protection in Botswana

Author:
Ratang Sedimo and Kelesego Mmolainyane
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This study seeks to examine institutional frameworks that exist in Botswana to protect the rights of ordinary shareholders. There is no literature on the subject matter in the context of Botswana; hence this study attempts to fill in the literature gap. The study uses a variety of data collection methods, such as semi-structured interviews, the Choppies case study and lessons learnt from other jurisdictions. Findings reveal that ordinary shareholders’ rights protection involves the use of institutional frameworks. In Botswana, existing frameworks are not adequate to protect ordinary shareholders’ rights. Furthermore, the study shows that ordinary shareholders in Botswana are mainly exposed to risks of losing their investments, partially or entirely, in case of non-compliance to regulatory requirements as shown by the reduction in Choppies’ stock price from P1.20 to P0.40 between years 2012 and 2018. The study suggests that the existing institutional frameworks should be reviewed to ensure adequate protection of ordinary shareholders’ rights.
Topic:
Security, Economics, Human Rights, Investment, Macroeconomics, Land Rights, and Labor Rights
Political Geography:
Africa and Botswana

15. Whistleblowing in Botswana's Construction Industry : A Public and Private Sector Perspective

Author:
Marumo Omotoye
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The construction industry (CI) is considered one of the most corrupt both internationally and regionally. Therefore, this study examined the views and attitudes of professionals in Botswana’s CI towards the role whistleblowing (or protected disclosure) can play in curbing corruption in the sector. A convergent mixed methods approach was adopted. Semi-structured interviews were conducted with key stakeholders from the construction industry. Furthermore, a self-administered survey was utilised to collect quantitative data from 117 construction firms. Data revealed that there was little awareness of whistleblowing legislation. Fear of retaliation or punishment and job loss, and a lack of education on whistleblowing were identified as some of the most substantial barriers to effective whistleblowing in the industry. From a public policy perspective, it is recommended that an emphasis be placed on improving levels of education and awareness on whistleblowing in the construction sector. In addition, there should be consideration to amend the Whistleblowing Act 2016 to include construction industry regulators, the Public Procurement and Asset Disposal Board, and private media amongst the list of institutions authorised to receive reports of impropriety in order to extend the scope of legal protection to whistleblowers in the sector. Recommendations for further research are provided.
Topic:
Corruption, Development, Economics, Public Sector, Manufacturing, Economic Development, Private Sector, Industry, and Whistle Blowing
Political Geography:
Africa and Botswana

16. Gender and Corruption in Botswana: Perceptions, Participation and Considerations for Anti-Corruption Policy

Author:
Marumo Omotoye
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
Several studies have argued that corruption has a greater impact on women than men and that increasing women’s representation in key decision-making positions has a positive effect in reducing corruption. However, limited scholarly and policy attention has been devoted to understanding the link between gender and corruption in Botswana. This paper explores the gendered differences of perceived and actual participation in bureaucratic corruption in Botswana. By examining Afrobarometer data and undertaking a documentary analysis, the study finds that while levels of perceived corruption by men and women in public institutions were high, participation in bureaucratic corruption (bribery) was considerably lower. Contrary to the notion that corruption has a greater impact on women than men, this study finds that higher levels of participation across all public service categories were reported by unemployed men, in particular, having to give a gift or a favour to avoid problems with the police. Notwithstanding the scant availability of data, the documentary analysis revealed that non-monetary forms of corruption such as sextortion (sexual extortion) have been experienced by female students and undocumented female migrants in Botswana. Nevertheless, this form of corruption has received little policy attention, despite its potential to undermine gender equality efforts. Additionally, the study finds little correlation between higher levels of women’s representation in key decision-making positions (i.e., parliament and cabinet) and lower levels of corruption in Botswana. There is a need for both the gender and anti-corruption policy framework to be synthesised in order to specifically reflect on and respond to the perceived gendered dimensions of corruption. The establishment of an independent police authority or commission might not only increase levels of public trust and confidence in the police service, but also strengthen levels of transparency and accountability.
Topic:
Corruption, Gender Issues, Migration, Politics, Women, and Men
Political Geography:
Africa and Botswana

17. Education and Labour Market Activity of Women in Botswana

Author:
Goitseone Khanie
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This study examines the prevalence of female participation in labour market activities and investigates the role played by education in this participation. Using the 2015/16 Botswana Multi Topic Household Survey data and a multinomial logit model, the study found that women with tertiary education are more likely to be wage employed relative to self-employment, whereas those with lower to no education are more likely to be unemployed or out of the labour force. This is because higher education is normally considered a prerequisite for most wage jobs. It is therefore imperative for the government to continue educating women beyond secondary level as it will better equip them to participate in more meaningful labour market activities. On the other hand, there is need to stimulate the demand side of the labour market in order to accommodate the rising numbers of women with high levels of education. In order to encourage participation of women in high rewarding self-employment activities, there is need to intensify empowerment schemes that are largely oriented towards their self-employment.
Topic:
Education, Gender Issues, Labor Issues, Women, and Employment
Political Geography:
Africa and Botswana

18. The Impact of Macroeconomic Variables on Capital Market Development in Botswana’s Economy

Author:
Koketso Molefhi
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The study examines the impact of macroeconomic variables on stock and bond markets development in Botswana using Autoregressive Distributed Lag (ARDL)-Bounds Test. The results indicate that macroeconomic variables have an impact on capital market development in Botswana. In the short run, real output, money supply and inflation have a positive influence on the development of the stock market, while real exchange rate retards its development. Real output further supports the development of the stock market in the long run. For the bond market, only two variables, inflation rate and lending rate have positive and negative impact on the bond market in the long run respectively, while none of the variables influence the bond market in the short run. Policy implications include increased efforts by policy makers to increase money supply, gross domestic product for the development of stock market, while the bond market development requires a decrease in lending rates.
Topic:
Economics, Markets, Capital Flows, Macroeconomics, and Economic Development
Political Geography:
Africa and Botswana

19. Structural Transformation and Fiscal Policy in Botswana

Author:
Kelesego Mmolainyane
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This paper analyses impacts of fiscal policy on structural transformation in Botswana using structural vector autoregression (SVAR) model over the period of 1990 to 2015. The study uses an inclusive sustainable transformation (IST) index and government expenditure as proxies for structural transformation and fiscal policy respectively. Results show that prudent fiscal policy can be used as a major strategic tool for structural transformation in Botswana. Most evidently, IST index responds positively to government expenditure shocks over time. In addition, fiscal policy innovations dominantly account for movements in structural transformation in Botswana. Notwithstanding, Botswana has a lot of potential and opportunity to use its fiscal policy more effectively and efficiently to promote an inclusive structural transformation that leads to sustainable economic growth.
Topic:
Economics, Economic structure, Macroeconomics, and Fiscal Policy
Political Geography:
Africa and Botswana

20. Unemployment in the SADC Region

Author:
Johanne Motsatsi
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The objective of this study is to estimate the determinants of unemployment in the Southern African Development Community (SADC) region using annual data from 2000 to 2016. Given the characteristic of the data, the study adopts Fixed Effect (FE) estimation technique. For further analysis, the study also estimated the ARDL panel model to capture persistence effect of unemployment in the region. The FE results reveals that real GDP, foreign direct investment, consumer price index, credit to the private sector and interest rate are negatively related to unemployment. While trade openness, labour productivity and population have a positive sign. The results estimated with ARDL model are not very different from those of FE model, but we obtained a noticeably smaller estimates for ARDL model. Variables which have negative association with unemployment suggest that they are likely to reduce unemployment. Therefore, such indicators may be of interest to policy makers when formulating unemployment reduction strategies. In terms of policy advise, the study recommends the government of SADC member states to encourage the education system that can equip leaners with entrepreneurial skills and in-job practical skills, in order to promote high success rate of SMMEs as well as to provide skills needed in the labour market. It also recommended enforcement of free trade of goods and services in the region as a means of making the industrial sector an engine of economic growth in order to create much needed employment.
Topic:
Development, Economics, Labor Issues, Employment, Labor Policies, Macroeconomics, and Unemployment
Political Geography:
Africa and Botswana