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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. 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

4. State of Financial Cooperatives in Zambia: A viable option for increasing fi nancial inclusion?

Author:
ZIPAR
Publication Date:
10-2020
Content Type:
Policy Brief
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
This policy brief presents the summary fi ndings of a study on Promoting Financial Cooperatives (FCs) in Zambia that was conducted between 2017 and 2018 with fi nancial support from the Rural Finance Expansion Program (RUFEP), Ministry of Commerce Trade and Industry (MCTI) and the Zambia Center for Accountancy Studies (ZCAS). The study used both qualitative and quantitative approaches which included a situational analysis of FCs in Zambia, a study tour to Kenya and a census of Financial Cooperatives (FCs) eight provinces. The main objective of the study was to contribute to the development of FCs in Zambia by generating information on their performance. The secondary objectives of the study were to: 1. Undertake a situational analysis to develop a clear understanding of the landscape for the FCs in Zambia in terms of the regulatory framework, support institutions and the nature and level at which the FCs operate. 2. Undertake a Census of cooperatives to understand the opportunities and constraining factors for the growth of the Cooperatives movement in Zambia. It was envisaged that the study would provide evidence about FCs that could be used in the revision of the Cooperatives Act currently underway, aid MCTI understand the nature of Cooperatives and devise strategies for monitoring FCs. The study also aimed at providing information about the state of FCs that can used by the apex body of FCs and stakeholders such as Bank of Zambia.
Topic:
Regulation, Banks, Economic Development, and Financial Cooperatives
Political Geography:
Africa and Zambia

5. South Africa’s Changing Role in Global Development Structures – Being in Them but Not Always of Them

Author:
Elizabeth Sidiropoulos
Publication Date:
01-2019
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
South Africa’s engagement in global development structures has evolved since 1994, when the country re-entered the international community. The historical philosophical underpinnings of the African National Congress, the governing party, aimed to reaffirm the country’s place in the Global South and African firmament after the end of apartheid. This understanding is necessary in the context of South Africa’s priorities over the past 25 years, not least in the development debates. The last two decades have seen significant attempts to develop global norms that tackle the serious developmental challenges faced by developing countries. The paper explores these initiatives and divides them into three streams – those undertaken by the United Nations, those begun by the Development Assistance Committee of the Organisation for Economic Co-operation and Development (OECD-DAC), and those that may be understood as part of club governance processes (such as the G20, the BRICS (Brazil, Russia, India, China, South Africa), and the India-Brazil-South Africa Dialogue Forum (IBSA). South Africa’s engagement in these global development structures is analysed, along with its contribution to the evolution of African agency on the issues of global development. South Africa has strongly criticised existing power relations while undertaking strategic engagements with the North, centred on the vision of an African renaissance and the New Partnership for Africa’s Development initiative. The country has consistently argued that Northern aid cannot be put on the same platform as South-South Cooperation as they have different origins. Other African states and continental institutions have also ramped up their engagement on global development and development cooperation in recent years, which the paper also explores. While South Africa has always identified Africa as a core pillar of its foreign policy, its interests have not always cohered with those of the rest of the continent. Lastly, the paper explores possible avenues that South Africa might pursue in the current polarised multilateral environment. Its biggest challenge is the tension regarding its Global South identity, which has to balance its commitment to African issues and institutional processes, and its positioning via its membership of the BRICS as an emerging power that seeks to contest the current global power configurations.
Topic:
Development, United Nations, Multilateralism, and Economic Development
Political Geography:
Africa and South Africa

6. 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

7. 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

8. 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

9. Ethiopia: Economic Development in a Harsh Environment: Part 1

Author:
Paul Rivlin
Publication Date:
05-2019
Content Type:
Commentary and Analysis
Institution:
Moshe Dayan Center for Middle Eastern and African Studies
Abstract:
Paul Rivlin analyzes the ongoing economic challenges faced by Ethiopia. A visit to Ethiopia provides food for thought for an economist who devotes much of his time to the Middle East. During the last twenty years, despite many problems and a very difficult historical legacy, Ethiopia has experienced rapid economic growth. It remains a very poor, landlocked country with few natural resources and faces serious internal political problems but is experiencing something rare: relatively good governance. This has made the difference that is currently boosting growth and reducing poverty levels. This edition examines the political and economic development of Ethiopia in recent decades. The June edition will analyze the relevance of its experience for other countries.
Topic:
History, Economy, and Economic Development
Political Geography:
Africa, Middle East, and Ethiopia

10. Ethiopia: Economic Development in a Harsh Environment: Part 2

Author:
Paul Rivlin
Publication Date:
06-2019
Content Type:
Commentary and Analysis
Institution:
Moshe Dayan Center for Middle Eastern and African Studies
Abstract:
The second part of this review of Ethiopia’s economic development examines the strengths and weaknesses of the policies followed and the institutions established in recent years and compares them with the development policies adopted in East Asia.
Topic:
History, Reform, Economy, and Economic Development
Political Geography:
Africa and Ethiopia