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Begin New Search Political Geography Africa Content Type Working Paper Publishing Institution Botswana Institute for Development Policy Analysis Publication Year within 10 Years

1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. Consumption Inequality in Botswana: The Decomposition of the Gini Coefficient of Consumer Expenditures

Author:
Lillian Mookodi
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This paper applies the Lerman and Yitzhaki (1985) inequality decomposition approach on food and non-food expenditures on the 2009/10 Botswana Core Welfare Indicator Survey; and the 2015/16 Multi Topic Indicator Survey datasets with an objective to see how overall inequality translates into inequality within each expenditure component. To test for a robustness of our results, we apply a simple bootstrap procedure to obtain the means, standard errors and confidence intervals for the component Gini coefficients estimates. The decomposition analysis results show that overall inequality based on the Gini coefficient of consumption expenditure within the groups has increased between the two periods from 0.498 to 0.533. These results suggest that this rise in overall expenditure inequality is due to the increased burden in the household budget of non-food spending, which tends to be more unequal than food spending. The consumption expenditure is very unequal on non-food items like recreation and hotels; health; education and transport. On one hand, lower Gini coefficients are observed for food; and clothing and footwear; these commodities are considered as necessities among others. This paper finally offers some possible policy measures to curb this consumption expenditure inequality.
Topic:
Economics, Developing World, Inequality, and Economic Inequality
Political Geography:
Africa and Botswana

11. The Impact of Infrastructure on Economic Growth in Botswana

Author:
Mpho Raboloko
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The study determines the impact of infrastructure on economic growth in Botswana. The study employs an Autoregressive Distributed Lag (ARDL) estimation technique to determine how infrastructure affects economic growth in Botswana. The empirical results show that healthcare infrastructure has a positive and significant impact on economic growth in Botswana in the long run. The results further reveal that electric power consumption has a positive and significant effect in influencing economic growth in the short run. The results imply that in order to achieve higher economic growth, policymakers should consider accelerating improvement of healthcare infrastructure.
Topic:
Agriculture, Economics, Infrastructure, Health Care Policy, Economic structure, Economic Growth, and Rural
Political Geography:
Africa and Botswana

12. The Impact of Business Regulatory Quality on Private Sector Investment in Botswana

Author:
Kedibonye Sekakela
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
A market-friendly regulatory environment is key for private sector investment. In this paper, we examine the impact of business regulatory quality on private sector investment in Botswana. The paper finds that the business regulatory environment stimulates private sector investment in the long term and this phenomenon occurs when the quality of bureaucracy improves, among other factors. Other critical factors affecting private sector investment examined in this paper include; corporate credit, output and public infrastructure investment. Private sector investment responds positively to increases in corporate credit in the short term but not responsive in the long term. Economic activities support private sector investment positively but weak. On the other hand, public infrastructure investment crowds in(out) investment in the short and long term respectively. Policy wise, Botswana should further deepen its efforts towards creating a market-friendly regulatory environment and also consider how business regulatory quality interact with other policy variables for better investment and growth outcomes.
Topic:
Economics, Developing World, Regulation, Business, Investment, and Economic Development
Political Geography:
Africa and Botswana

13. Impacts of Access to ICTs on Employment Status in Botswana

Author:
Masedi K. Tshukudu
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
It is clear that technology has brought about significant changes in the livelihoods of people, creating new forms of employment and advancing the traditional forms of employment for individuals. Many countries continue to invest in Information and Communication Technologies (ICTs) with the view to tackling some of the economic challenges such as unemployment. Botswana like other African countries has made annual budgetary allocations towards ICT Infrastructure. Despite, the Government’s efforts to invest and improve access to ICT, the country still faces a high unemployment rate, particularly for the youth. This study therefore, investigates the impact that access to ICTs has on the employment of individuals in Botswana. In order to provide a detailed analysis of the impact of ICTs on employment we apply a probit model for binary choice responses to being employed or not being employed, using the data from the 2014 Botswana Household Access and Individual use of Information Communication Technology Survey carried out by the Statistics Botswana. The empirical results provide evidence that access to ICTs collectively has a positive impact on employment in Botswana. However, disaggregating the ICTs forms presents slightly different results, e-skill training and access to the internet in Botswana are not significant in explaining an individual’s employment status, this may be associated with low uptake of internet and ICTs skills by individuals in Botswana. The policy message from this study is that there is a need for aggressive implementation of collective ICT. [In addition, there is need to improve collective ICTs infrastructure to create more employment].
Topic:
Development, Economics, Science and Technology, Communications, Information Age, and Economic Development
Political Geography:
Africa and Botswana

14. Challenges of Project Implementation in Local Government: The Case of Francistown City Council and Kweneng District Council Botswana Institute

Author:
Thabile A. Samboma
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
Botswana is faced with many challenges of project implementation. Since independence detailed projects and programmes were initiated, with limited and often less developed state capacity to implement them. This study focuses on challenges of project implementation in Botswana’s tier of local government. A qualitative case research method approach was employed to undertake the study. Telephonic interviews were conducted with politicians and employees from Francistown City Council (FCC) and Kweneng District Council (KDC) and data was analysed using thematic analysis. The paper outlines project implementation challenges in Local Authorities (LA). For instance, lack of capacity, lack of commitment by the District Development Committee (DDC), poor stakeholder engagement and lack of financial autonomy by councils. Some of the identified implementation challenges are not peculiar to the two LAs but cuts across local authorities in Botswana. However, low human capacity in local authorities was cited as a major problem in project implementation.
Topic:
Governance, Elections, Domestic Politics, Local, and State Funding
Political Geography:
Africa and Botswana

15. Financial Inclusion and its Impact on Employment Creation in Botswana

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 financial inclusion on employment creation in Botswana using quarterly time series data for the period 2004-2016. Using Autoregressive Distributed Lag (ARDL) model, we find that availability of bank branches, ownership of bank account and borrowing from the commercial bank have a positive impact on employment creation in the short run. Similarly, in the long run, availability of bank branches, ownership of bank account has a positive relationship with employment creation in the long run. Depositors with commercial banks has a negative bearing on employment creation, both in the short run and in the long run. Therefore, policies should be aimed at ensuring easy access into the financial sector by way of reducing costs associated with account opening as well as creating affordable deposit and borrowing windows to the financially excluded groups.
Topic:
Economics, Labor Issues, Employment, Finance, Financial Markets, and Macroeconomics
Political Geography:
Africa and Botswana

16. Youth Employment in Botswana: Comparative Analysis of 2009/10 and 2015/16

Author:
Tshepiso Gaetsewe
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The study examines determinants of youth unemployment in Botswana by comparing two different datasets- (2009/10 Botswana Core Welfare Indicator Survey (BCWIS) and 2015/16 Botswana Multi-Topic Household Survey (BMTHS)). The main objective of the study is to identify the factors that determine the employment probabilities of the youth. Using a probit model we find that gender, age, marital status and education level have an impact on the employment probabilities in both 2009/10 and 2015/16 time periods. Males had a higher chance of employability compared to females. The government and private sector need to develop programmes that will increase women participation in the labour market. Results also indicate that youth with post-secondary education have a better chance of employment. Individuals dwelling in rural and urban areas are less likely to get employment. Government needs to boost business activity in rural areas by identifying and investing in economic activities located there.
Topic:
Employment, Youth, Unemployment, and Job Creation
Political Geography:
Africa and Botswana

17. 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, Public Policy, Participation, Gender, and Perception
Political Geography:
Africa and Botswana

18. Impacts of Access to ICTs on Employment Status in Botswana

Author:
Masedi K. Tshukudu
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
It is clear that technology has brought about significant changes in the livelihoods of people, creating new forms of employment and advancing the traditional forms of employment for individuals. Many countries continue to invest in Information and Communication Technologies (ICTs) with the view to tackling some of the economic challenges such as unemployment. Botswana like other African countries has made annual budgetary allocations towards ICT Infrastructure. Despite, the Government’s efforts to invest and improve access to ICT, the country still faces a high unemployment rate, particularly for the youth. This study therefore, investigates the impact that access to ICTs has on the employment of individuals in Botswana. In order to provide a detailed analysis of the impact of ICTs on employment we apply a probit model for binary choice responses to being employed or not being employed, using the data from the 2014 Botswana Household Access and Individual use of Information Communication Technology Survey carried out by the Statistics Botswana. The empirical results provide evidence that access to ICTs collectively has a positive impact on employment in Botswana. However, disaggregating the ICTs forms presents slightly different results, e-skill training and access to the internet in Botswana are not significant in explaining an individual’s employment status, this may be associated with low uptake of internet and ICTs skills by individuals in Botswana. The policy message from this study is that there is a need for aggressive implementation of collective ICT. [In addition, there is need to improve collective ICTs infrastructure to create more employment].
Topic:
Science and Technology, Communications, Infrastructure, and Employment
Political Geography:
Africa and Botswana

19. The Impact of Business Regulatory Quality on Private Sector Investment in Botswana

Author:
Kedibonye Sekakela
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
A market-friendly regulatory environment is key for private sector investment. In this paper, we examine the impact of business regulatory quality on private sector investment in Botswana. The paper finds that the business regulatory environment stimulates private sector investment in the long term and this phenomenon occurs when the quality of bureaucracy improves, among other factors. Other critical factors affecting private sector investment examined in this paper include; corporate credit, output and public infrastructure investment. Private sector investment responds positively to increases in corporate credit in the short term but not responsive in the long term. Economic activities support private sector investment positively but weak. On the other hand, public infrastructure investment crowds in(out) investment in the short and long term respectively. Policy wise, Botswana should further deepen its efforts towards creating a market-friendly regulatory environment and also consider how business regulatory quality interact with other policy variables for better investment and growth outcomes.
Topic:
Regulation, Business, Investment, and Private Sector
Political Geography:
Africa and Botswana

20. The Impact of Infrastructure on Economic Growth in Botswana

Author:
Mpho Raboloko
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The study determines the impact of infrastructure on economic growth in Botswana. The study employs an Autoregressive Distributed Lag (ARDL) estimation technique to determine how infrastructure affects economic growth in Botswana. The empirical results show that healthcare infrastructure has a positive and significant impact on economic growth in Botswana in the long run. The results further reveal that electric power consumption has a positive and significant effect in influencing economic growth in the short run. The results imply that in order to achieve higher economic growth, policymakers should consider accelerating improvement of healthcare infrastructure.
Topic:
Infrastructure, Health Care Policy, Economic Growth, and Integration
Political Geography:
Africa and Botswana

21. Consumption Inequality in Botswana: The Decomposition of the Gini Coefficient of Consumer Expenditures

Author:
Lillian Mookodi
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This paper applies the Lerman and Yitzhaki (1985) inequality decomposition approach on food and non-food expenditures on the 2009/10 Botswana Core Welfare Indicator Survey; and the 2015/16 Multi Topic Indicator Survey datasets with an objective to see how overall inequality translates into inequality within each expenditure component. To test for a robustness of our results, we apply a simple bootstrap procedure to obtain the means, standard errors and confidence intervals for the component Gini coefficients estimates. The decomposition analysis results show that overall inequality based on the Gini coefficient of consumption expenditure within the groups has increased between the two periods from 0.498 to 0.533. These results suggest that this rise in overall expenditure inequality is due to the increased burden in the household budget of non-food spending, which tends to be more unequal than food spending. The consumption expenditure is very unequal on non-food items like recreation and hotels; health; education and transport. On one hand, lower Gini coefficients are observed for food; and clothing and footwear; these commodities are considered as necessities among others. This paper finally offers some possible policy measures to curb this consumption expenditure inequality.
Topic:
Food, Inequality, Consumption, and Spending
Political Geography:
Africa and Botswana

22. 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:
Fiscal Policy, Sustainability, and Economic Transformation
Political Geography:
Africa and Botswana

23. 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:
Development, Economy, Macroeconomics, and Stock Markets
Political Geography:
Africa and Botswana

24. 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, Markets, Labor Issues, and Women
Political Geography:
Africa and Botswana

25. Financial Inclusion and its Impact on Employment Creation in Botswana

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 financial inclusion on employment creation in Botswana using quarterly time series data for the period 2004-2016. Using Autoregressive Distributed Lag (ARDL) model, we find that availability of bank branches, ownership of bank account and borrowing from the commercial bank have a positive impact on employment creation in the short run. Similarly, in the long run, availability of bank branches, ownership of bank account has a positive relationship with employment creation in the long run. Depositors with commercial banks has a negative bearing on employment creation, both in the short run and in the long run. Therefore, policies should be aimed at ensuring easy access into the financial sector by way of reducing costs associated with account opening as well as creating affordable deposit and borrowing windows to the financially excluded groups.
Topic:
Employment, Finance, Financial Institutions, and Inclusion
Political Geography:
Africa and Botswana

26. Challenges of Project Implementation in Local Government: The Case of Francistown City Council and Kweneng District Council

Author:
Thabile A. Samboma
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
Botswana is faced with many challenges of project implementation. Since independence detailed projects and programmes were initiated, with limited and often less developed state capacity to implement them. This study focuses on challenges of project implementation in Botswana’s tier of local government. A qualitative case research method approach was employed to undertake the study. Telephonic interviews were conducted with politicians and employees from Francistown City Council (FCC) and Kweneng District Council (KDC) and data was analysed using thematic analysis. The paper outlines project implementation challenges in Local Authorities (LA). For instance, lack of capacity, lack of commitment by the District Development Committee (DDC), poor stakeholder engagement and lack of financial autonomy by councils. Some of the identified implementation challenges are not peculiar to the two LAs but cuts across local authorities in Botswana. However, low human capacity in local authorities was cited as a major problem in project implementation.
Topic:
Development, Government, Policy Implementation, and Authority
Political Geography:
Africa and Botswana

27. Competitiveness-of ACP Sugar Exports in Global Markets

Author:
Tebogo Seleka and Thula Dlamini
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
We employ the Normalized Revealed Comparative Advantage (NRCA) index on data for the period 1961-2013 to examine the competitiveness of the African, Caribbean and Pacific (ACP) countries in the global sugar market. Results indicate that the majority of the ACP states had comparative advantage in the global sugar market during the period 1961-2013. However, most of these countries also experienced declining comparative advantage, except for a few African countries that emerged from initial states of extreme comparative disadvantage to marginal comparative (dis)advantage. This occurred despite the fact that these countries enjoyed tariff free access to the highly protected EU market. Mauritius, followed by Fiji, Guyana and Jamaica, recorded the strongest comparative advantage among the ACP countries. However, it recorded weaker comparative advantage than the leading comparator non-ACP countries of Australia, Brazil and Thailand, which experienced considerable increases in comparative advantage over the considered period. Overall, there has been convergence in comparative advantage among ACP states since the signing of the Lomé convention in 1975.
Topic:
Development, Economics, Exports, Macroeconomics, and Economic Development
Political Geography:
Africa and Botswana

28. Public Policy Implementation Prospects and Challenges-in Botswana : A Case of the National Policy on Care for People with Disabilities

Author:
Marumo Omotoye
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
People with disabilities (PWDs) are often subjected to economic and social exclusion. This paper assesses factors that contribute to, and/or hinder the implementation of Botswana’s national disability policy. Despite the Government of Botswana’s efforts to uplift marginalised and vulnerable groups, PWDs remain disenfranchised as a result of social, physical and legislative barriers. Data was collected from secondary data sources and analysed using thematic analysis. The Analysis of Determinants of Policy Impact (ADEPT) approach, which aims to explain and influence policy development and policy impact implementation with four determinants: goals, obligations, resources and opportunities, was adopted. The study’s findings show that 22 years after its adoption, the National Policy on Care for People with Disabilities has not resulted in the desired policy outcomes, let alone achieved its objective of improving the lives of people with disabilities. While the Policy has the potential to be an important tool in achieving social inclusion and protecting the rights of PWDs, implementation gaps remain, essentially limiting its effectiveness.
Topic:
Disability and Public Policy
Political Geography:
Africa and Botswana

29. Impact of Internationalization on Firm Performance in Botswana

Author:
Goitseone Khanie
Publication Date:
08-2018
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
Internationalization can affect a firm’s performance. This study determines how a firm’s engagement in international business activities affects its performance in Botswana. The study uses the Ordinary Least Squares method to regress firm performance over the degree of internationalization index (DOI), a composite variable of export intensity, import intensity and FDI intensity and control variables, size of the firm and the industry in which the firm operates. The results show that there is a positive relationship between firm performance and the degree of internationalization. This implies that among other growth strategies, internationalization can be considered as an important strategy to improve firm performance. The policy implication of these results is that efforts should be made to assist firms to internationalize their operations as a way of improving their performance.
Topic:
Economy, Business, Internationalization, and Firm Growth
Political Geography:
Africa and Botswana

30. Financial Development and Economic Growth in Botswana

Author:
Kedibonye Sekakela
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The study examines the interrelationships between financial development, economic growth, capital accumulation and productivity growth in Botswana over the period 1980-2014. Using the Autoregressive Distributed Lag (ARDL) bound test technique, we find that financial development, measured by private credit, has a negative and significant impact on economic growth both in the long and short run. In contrast, we observe that financial development, measured by liquid liabilities, has a positive and significant impact on economic growth in the short run. Furthermore, the empirical results show that the interrelationship between FD (private credit) and economic growth support the supply leading hypothesis while the interrelationships between FD (liquid liabilities) and economic growth support the demand-following hypothesis. On a positive note, the empirical evidence also suggests that financial development (private credit) leads to higher output level in Botswana through promoting the accumulation of assets. Thus, for financial development to promote economic growth through both the accumulation of capital and productivity growth, it is useful to further develop Botswana’s financial market. Efficient financial institutions may encourage innovation by mobilising resources to finance promising investment projects, evaluating prospective entrepreneurs and allowing investors to diversify the risks related to uncertain innovative activities. It is also crucial to improve the investment environment in Botswana which will encourage lending activities by the financial sector, especially towards the business sector. Furthermore, if diversification of the Botswana economy continues, we can expect the financial development to play a more prominent role in the country’s overall economic performance in the future.
Topic:
Development, Finance, Economic Growth, Productivity, and Capital Accumulation
Political Geography:
Africa and Botswana

31. Determinants of Tourism Demand in the SADC Region

Author:
Johane Moilwa Motsatsi
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This study estimates the determinants of tourism demand in Southern Africa Development Community (SADC) region using Generalised Least Squares (GLS) estimation procedure and panel data for the period 1997-2015. The results obtained suggest that the elasticities of tourism demand with respect to real capital investment on the tourism sector, real exchange rate, real gross domestic product (GDP), proportion of population with access to internet and global peace index are positive, while that with respect to inflation rate is negative. These results imply that for any country in the SADC region to attract more arrivals of tourists: it should invest significantly on the tourism sector, in terms of upgrading tourism infrastructure; implement exchange rate policy that is favourable to international tourists; and promote a reputation of being a peaceful and less corrupt country. Since tourism has strong linkages with other economic sectors, it is an ideal prospect for economic diversification.
Topic:
Development, Tourism, Diversification, and Regional Economy
Political Geography:
Africa and Botswana

32. Determinants of Service Sector Growth in Botswana

Author:
Mpho Raboloko
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This study examines the factors affecting service sector growth and development in Botswana. Using annual time series data from 1980 to 2015, the study employs the auto regressive distributed lag (ARDL) estimation technique to identify the factors that contribute to service sector growth. The results show that gross national expenditure, domestic credit to the private sector and gross fixed capital formation contribute positively to the growth of the service sector in Botswana. However, trade openness is found to negatively impact the growth of service sector in the country. The policy implication of the results is that in formulating service oriented policies, government should focus on factors that augment the growth of services sector. Specifically, government should increase spending on the service sector and its sub-sectors. Also, the banking sector should avail credit to the private sector as this is essential for the growth and development of the service sector.
Topic:
Development, Economic Growth, Services, and Capital Formation
Political Geography:
Africa and Botswana

33. Revealed Comparative Advantage in the Global Citrus Market and Implications for South Africa

Author:
Tebogo Seleka and Ajuruchukwu Obi
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This paper adopts the Normalized Revealed Comparative Advantage (NRCA) index and data for the period 1961-2013 to examine comparative advantage among the leading citrus exporters in the global market and draws implications for South Africa’s citrus industry. Results reveal that Spain was the most competitive citrus exporter throughout the review period. South Africa (SA) improved steadily over time from position four to position two, surpassing Italy and Morocco in the process. Morocco, which ranked between positions two and four, was also surpassed by Turkey, which improved from position ten during the period 1961-1965 to position three during 2006-2010. Trend analyses of the annual NRCA scores indicate that Turkey is on the verge of surpassing SA in terms of competitiveness. Broadly, the results indicate that SA experienced weakening comparative advantage during the apartheid era, owing partly to trade sanctions by several European countries. With the end of apartheid and the subsequent removal of the sanctions, the situation has vastly improved, further yielding a rise in SA citrus competitiveness in the global market.
Topic:
Global Markets, Economy, Exports, and Competition
Political Geography:
Africa and South Africa

34. Financing SMEs In Botswana: Factors Influencing Access to Credit

Author:
Goitseone Khanie
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This study examines factors influencing access to credit by SMEs in Botswana. Using the 2010 World Bank Enterprise Survey, and employing logit model for analysis, we find that access to credit is influenced by gender, citizenship and experience of the entrepreneur; as well as firm-size, sector of business,sales and land ownership. Therefore, public policy must pay attention to the diversities of SMEs’ socio-economic characteristics as well as the business environment in which they operate when implementing finance assistance progammes. Measures to develop SMEs must be carefully focused, aiming at providing incentives for financial institutions to play an active role in SME financing. Government must formulate policies that will make finance institutions relax their requirements and lending procedures which tend to discourage borrowing. Similarly, public policy must be focused on strengthening the business acumen of SMEs through trainings and workshops, such that they are perceived attractive to financiers.
Topic:
Finance, Entrepreneurship, Business, Public Policy, and Credit
Political Geography:
Africa and Botswana

35. Determinants of Self-Employment in Botswana

Author:
Tshepiso Gaetsewe
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The global market is rapidly recognizing the importance of entrepreneurship and selfemployment, especially in growing the economy, creating jobs and reducing poverty. This paper employs the logit regression model to investigate the determinants of selfemployment in Botswana, using the 2009/2010 Botswana Core Welfare Indicator Survey (BCWIS) data. The results reveal that individuals who are male, citizens, educated and living in cities are less likely to be self-employed than their counterparts. On the other hand, the age of the entrepreneur positively influences the likelihood of self-employment, as well as being a widow. Public policy needs to empower females and rural dwellers in terms of skills and entrepreneurship training in order to enhance their success in their self-employment activities. In addition, government should continue with its efforts of providing assistance to the youth for entrepreneurial development in order to reduce unemployment.
Topic:
Entrepreneurship, Public Policy, Economic Development, and Self-Employment
Political Geography:
Africa and Botswana

36. Technology and the Nature of Active Citizenship: The Case of Botswana

Author:
Molefe B. Phirinyane
Publication Date:
10-2016
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The use of technology in citizen participation has grown phenomenally in developed countries, but is emergent in most developing countries. Accessibility and the functionality of information and communication technologies such as telephone, cellular phone and internet have profound effect on citizen participation in politics, policy making and implementation. This study applies a case study methodology to understand the relationship between technology and the nature of active citizen participation in developing countries, using Botswana as a case example. The penetration and use of the information and communication technologies in politics and the policy-making process in Botswana remains low. Botswana first laid in place the policy, legal and institutional frameworks to guide its development of ICTs in her governance system. The country has since made significant gains on providing ICT infrastructure countrywide, and reducing the costs associated with accessing these where available. The country has registered improvements on all indicators on Technological readiness, further strengthening the country’s path on the adoption ICTs in its governance process.The findings suggest that countries should take the responsibility for, and be committed to, creating a conducive environment for the ICT industry to thrive while not losing focus of the ultimate objective of citizen participation.
Topic:
Communications, Citizenship, Participation, Information Technology, and E-Government
Political Geography:
Africa and Botswana

37. Strengthening Local Government Service Delivery Systems Through the Open Government Initiative: The Case of Botswana

Author:
Naledi C. Madala and Molefe B. Phirinyane
Publication Date:
09-2016
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The Government of Botswana has, and continues to promote local government as an instrument of decentralization and public participation for local level governance and service delivery. Local authorities (LAs) are at the forefront of the provision of basic services to the local communities. The LAs are also a major channel for the use of public resources as exemplified by the significant budget allocations committed to them. It is, therefore, important that they conduct their business in the most effective and efficient manner. In order for public sector systems to deliver effective localized services, LAs in Botswana should be gradually transformed from bodies that are mainly concerned with pushing services but to proactively engage their citizens and represent their communities’ interests. Considering the extent of responsibilities of the local government authorities, there is a need to set clear expectations and have structures to ensure that local bodies respond to local needs by conducting local development in a timely, inclusive, open, honest and accountable manner. As some of the many efforts required to improve governance and service delivery in the country this paper proposes the establishment and operationalisation of an Open Local Government Framework, within which local bodies will be supported to make extensive local government information available online as part of an online LA notice board. This paper also recommends for the production of a Local Authority Data Book as a foundation for evidence-based policy-making and policy implementation.
Topic:
Government, Governance, Public Sector, Data, and E-Government
Political Geography:
Africa and Botswana

38. Examining Evidence of Feminization of Poverty in Botswana

Author:
Khaufelo Lekobane and Keneilwe S. Mooketsane
Publication Date:
10-2015
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
Poverty in Botswana is more pronounced in female-headed households (FHHs) especially those residing in rural areas where employment opportunities are limited. Similarly, the proportion of the FHHs to the total poor increased between 2002/03 and 2009/10. However, no study has so far analyzed whether feminization of poverty has occurred. This paper therefore, examines feminization of poverty in Botswana using the 2009/10 Botswana Core Welfare Indicator Survey and the 2002/03 Household Income and Expenditure Survey datasets. The results indicate no evidence of feminization of poverty (at both national and regional levels). However, the results reveal evidence of feminization of poverty amongst the married couples, the widowed, the divorced, the unemployed, those working in own farms and the self-employed. Therefore, public policy should focus on gender sensitive poverty alleviation strategies, with specific focus on the vulnerable FHHs, especially the divorced/separated and the widowed, in order to fully address the feminization of poverty amongst these groups.
Topic:
Poverty, Women, Economic Development, and Gender
Political Geography:
Africa and Botswana

39. Integrated Results Based Management in Botswana: Institutions, Documentation and Progress to Date

Author:
Gape Kaboyakgosi and Lillian Mookodi
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
National and international pressure on governments to provide tangible and demonstrable results for public action has become a major preoccupation of many governments and international donors (Kettl, 1997; Norman, 2002; Moynihan, 2006; Mayne, 2007). The Integrated Results Based Management (IRBM) system has been found to be a very powerful instrument for achieving this aim (World Bank, 2001; Koshy and Thomas, 2007; OECD, 2009). This paper analyses Botswana’s efforts at implementing the IRBM system. IRBM is a way of reforming public sectors through helping governments focus on proper, well-timed achievement of relevant goals and objectives. Such reform is carried out through the utilisation of strategic planning, systematic implementation and resource usage, performance monitoring, measurement and reporting as well as systematic use of performance information to improve policy decision making and programme performance at all levels (Koshy and Thomas, 2007). IRBM is, therefore, a way of improving implementation by linking budgetary and human resources systems, and producing timely quality information that is linked through entire government organs.
Topic:
Governance, Institutions, Management, and Strategic Planning
Political Geography:
Africa and Botswana

40. The Impact of Trading with China on Botswana’s Economy

Author:
Kedibonye Sekakela
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The objective of this paper is to examine the impact of trading with China on Botswana’s domestic and third markets. The paper also assesses the structure and magnitude of Botswana-China bilateral trade. Botswana’s trade balance with China has been widening over the past decade, with Botswana mainly exporting primary products and importing intermediate and capital goods, which are mainly used as inputs in the development of infrastructure in the country. The increased import penetration from China is associated with Botswana’s reduced total manufacturing output. China’s Textile, Clothing and Footwear (TCF) exports gained market share from Botswana’s TCF exports in the third markets, that is South Africa. There is a need to consider ways of enhancing Botswana’s export competitiveness and there are also lessons to be learnt from China in relation to enhancing productivity in the TCF and other exporting industries.
Topic:
Development, Markets, Bilateral Relations, Infrastructure, and Exports
Political Geography:
Africa, China, Asia, and Botswana

41. Towards a Diversified Economy: A Preliminary Assessment of the Potential, Prospects and Challenges for Electricity Exports from Botswana

Author:
Margaret Sengwaketse
Publication Date:
07-2014
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
The paper assesses the prospects and challenges of coal-fired power exports in Botswana. Specifically, the study analyses how supply factors, that is, resource availability; environmental concerns; infrastructure and technology as well as demand factors are likely to affect the development of thermal power exports in Botswana. The study concludes that coal resources are sufficient to support exports of thermal power and that technology on coal-fired power plants is available, reliable and mature. However, environmental concerns associated with coal-fired power generation; the high costs of construction and maintenance of power plants; regional demand factors, including the increasing competition from renewable sources of energy are major factors in the feasibility of the development of coal-fired electricity exports in Botswana.
Topic:
Development, Environment, Science and Technology, Infrastructure, Diversification, Exports, and Electricity
Political Geography:
Africa and Botswana

42. Public Transfers and Subsistence Producer Disincentives in Botswana

Author:
Tebogo Seleka
Publication Date:
03-2014
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
This paper investigates the disincentive effects of public transfers on subsistence producers in Botswana. Comparative statics analyses indicate that public transfers would not affect farm production when profit and utility maximization decisions are recursive, with the profit maximization decision made first. However, when such decisions are interdependent, public transfers would lead to a reduction in farm output. Empirical results reveal that social pensions have impacted positively on cultivated area, but have had no impact on cereal yields and output. However, government food rations have impacted adversely on cultivated area, yields and output; they are a disincentive to crop production because they are relatively more sizable, consistent and certain. This, it is argued, is because food packages are directly substitutable for subsistence crop production. Therefore, public policy in Botswana should consider moving away from food to cash transfers to minimize such disincentive effects.
Topic:
Agriculture, Labor Issues, Food, Welfare, and Safety Net
Political Geography:
Botswana and Africa