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1. 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

2. 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

3. Youth Unemployment in Africa: Capacity Building and Innovative Strategies

Publication Date:
12-2017
Content Type:
Special Report
Institution:
The African Capacity Building Foundation (ACBF)
Abstract:
The aim of this Occasional Paper produced by the African Capacity Building Foundation is to provoke evidence-based discussion, and encourage further investigation on the critical capacity challenges to be addressed to tackle youth unemployment in Africa. The paper assesses the causes and impacts of youth unemployment in Botswana, Namibia, South Africa, and Swaziland. It profiles and characterizes the status and nature of youth unemployment as well as the strategies and programs—and identifies the challenges, implications, and gaps—to find ways to address it. Stakeholder and expert consultations with development partners, government, the private sector, and nongovernmental organizations in addressing youth unemployment were carried out, as such research is crucial for identifying capacity gaps and key policy aspects to address it. The consultations were complemented with a review of success stories and best practices to inform strategies and capacity development interventions aimed to tackle youth unemployment and refine policy approaches toward inclusive, employment-creating, and sustainable economic growth.
Topic:
Development, Economic growth, Youth, Capacity, Unemployment, Economic Development, and Sustainability
Political Geography:
Africa, South Africa, Swaziland, Namibia, and Botswana