## NAMIBIA — REPORT ON NATIONAL ACCOUNTS MISSION (FEBRUARY 5–9, 2018)

## Source details

**Canonical URL:** [NAMIBIA — REPORT ON NATIONAL ACCOUNTS MISSION (FEBRUARY 5–9, 2018)](https://www.imf.org/-/media/files/publications/cr/2018/cr18140.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/cr/2018/cr18140.pdf.md)
- [Structured JSON version](/-/media/files/publications/cr/2018/cr18140.pdf.json)

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### Summary of mission outcomes and priority recommendations
- Mission dates: February 5–9, 2018.
- Purpose: Ensure fullest possible use of Value Added Tax (VAT) and other administrative data in compilation of national accounts; support rebasing of GDP in 2019 and full implementation of the 2008 System of National Accounts (2008 SNA).
- Key priorities identified:
  - Importance of tax data (VAT) for national accounts compilation — overcoming barriers to sharing non-anonymized unit-level VAT data between the Ministry of Finance (MOF)/Inland Revenue (IR) and Namibia Statistics Agency (NSA) could have a high impact.
  - Rebasing of GDP in 2019 and full implementation of 2008 SNA — requires more and better data, including financial services details from Bank of Namibia (BoN) and a Statistical Business Register (SBR).
  - Quarterly national accounts improvement — move from constant-price-only quarterly GDP to both current and constant price estimates using VAT turnover and better indicators.

- Priority Recommendations (Target Date — Priority Recommendation — Responsible Institutions):
  - February – June 2018 — Actively engagement between NSA and MOF to improve the industry coding of the existing data supply — NSA / MOF
  - June 2018 — Source appropriate data from BoN to enable compilation of estimates of financial services activities in line with 2008 SNA — NSA / BoN
  - February - October 2018 — Continue to negotiate with MOF to enable sharing of non-anonymized VAT turnover data — NSA / MOF

### Acquisition and quality of administrative data (VAT and tax data)
- MoU status and data flow:
  - NSA signed a memorandum of understanding (MoU) with MOF in 2017 enabling sharing of VAT turnover data; unit-level data are being shared on a regular basis but currently anonymized.
  - MoU completed earlier: Complete the MoU — Target Completion Date February 2016 — status: Complete (MoU agreed and signed, enabling sharing of data); identifiable turnover data not yet supplied (Started late 2017).
- Data quality and classification issues:
  - Industry coding is carried out by MOF using a bespoke classification inconsistent with ISIC Rev.4.
  - More than 10 percent of the units are classified to “unknown” or “other.” A significant proportion are very small or dormant, but some extremely large businesses are thus classified. NSA currently assign these businesses to wholesale and retail.
  - Action agreed: NSA and MOF to work urgently to correctly classify unknown businesses and introduce ISIC Rev.4; where back data are not available, existing estimates to be spliced onto new data, maintaining growths.
- Data sharing constraints and recommendations:
  - MOF willing to share a full list of business names and unit-level anonymized turnover but not non-anonymized turnover. Recommendation: strengthen MoU to reassure MOF (for example, NSA to create/share/update list of officials with access).
- Recommended actions:
  - NSA to work with MOF to improve industry coding and address “unknown” and “other” units.
  - NSA to negotiate with MOF to strengthen the MoU to facilitate sharing of non-anonymized data.

### Data requirements for financial services (FISIM) and Bank of Namibia cooperation
- Data needed to compile financial services activities in line with 2008 SNA:
  - Stocks of loans and deposits by industry and institutional sector,
  - Interest paid to and received from each industry and institutional sector,
  - Inter-bank interest rate,
  - Compensation of employees, intermediate consumption and consumption of fixed capital for the BoN.
- BoN engagement:
  - A meeting with BoN resulted in a commitment to provide as much detail as they hold on these issues on an ongoing basis and to provide the longest possible time series. Where long time series are not available, existing estimates will need to be spliced on to the new estimates, maintaining existing growths.
- Recommended action:
  - BoN to provide requested data for the banking industry (longest possible time series).

### Rebasing of GDP and Statistical Business Register (SBR)
- NSA target: rebase GDP in 2019 and implement 2008 SNA.
- Preconditions:
  - Access to identifiable VAT turnover data and better industry coding.
  - Development and maintenance of a Statistical Business Register (SBR) to provide sampling frame for benchmark surveys used in rebasing.
- Use of household survey:
  - Recommendation to explore using the most recent household survey covering the period 2015–16 for estimates of household final consumption expenditure (HHFCE).
- Recommended actions:
  - Once identifiable data can be shared, NSA to use these in setting up and maintaining the SBR.
  - NSA to explore use of the 2015–16 household survey to calculate HHFCE.

### Quarterly GDP estimates and indicators
- Current practice:
  - NSA produces quarterly estimates of GDP in constant prices only using various indicators of varying quality.
- Shortcomings and examples:
  - Hotel industry: currently estimated using bed occupancy rates which miss significant output components (bars, restaurants, spas, gyms). VAT turnover data plus appropriate deflators would provide a better indicator.
  - Insurance industry: requires conceptual framework and data; mission suggested possible data and NSA to engage the insurance regulator.
  - Agriculture industry: current indicators described as unreliable; NSA to work with the Ministry of Agriculture for improved indicators.
- Deflation practice:
  - Main deflators used are components of the Consumer Prices Index (CPI) and the South African Producer Prices Indices (SAPPIs); NSA is developing Namibian Producer Price Indices (PPIs) which will be more appropriate in some cases.
- Recommended actions:
  - NSA to obtain VAT turnover and other administrative data to enable quarterly GDP in current prices and improved constant price estimates.
  - NSA to discuss available insurance data with the industry regulator.
  - NSA to discuss improved indicators with the Ministry of Agriculture.

### Detailed technical assessment: prioritized actions, risks, and status highlights
- MoU and data access:
  - Complete the MoU with MOF — Target Completion Date February 2016 — Actual: Mid-2017 — Status: Complete.
  - Obtain unit-level data from MOF — Target Completion Date March 2016 — Actual: Started late 2017 — Status: Data being supplied but anonymized; next step is to obtain identifiable data.
- ISIC classification and harmonization:
  - NSA to work with MOF to classify businesses to ISIC Rev.4 — Target Completion Date August 2016 — Status: Due to start February 2018 (working-level meetings planned).
  - Harmonize tax system with ISIC — Target Completion Date October 2016 — Not yet started.
- SBR design and implementation milestones (not yet started as of mission):
  - Identify variables for SBR — Target Completion Date September 2016.
  - Obtain required data from MOF for SBR — Target Completion Date March 2017.
  - SBR designed with TA experts — Target Completion Date October 2017.

### Officials met during the mission
- List of key officials and institutions engaged:
  - Mr. Justus Mwafongwe — Commissioner of Inland Revenue Department
  - Mr. Penda Ithindi — Economic Advisor to the Minister of Finance
  - Mr. Alex Shimuafeni — Statistician General and CEO of NSA — AShimuafeni@nsa.org.na
  - Ms. Grace Hamauka — Bank of Namibia
  - Ms. Sanette Shulze-Struchtrup — Bank of Namibia
  - Mr. Ngaingonekue Uamburu — Head of National Accounts, NSA — NUamburu@nsa.org.na
  - Mr. Titus Kamatuka — NSA — tkamatuka@nsa.org.na
  - Ms. Fransina Angula — NSA
  - Ms. Victorina Amupadhi — NSA
  - Ms. Vejama Mootu — NSA

*IMF Country Report No. 18/140 — NAMIBIA: TECHNICAL ASSISTANCE REPORT — THE NATIONAL ACCOUNTS MISSION (completed February 2018).*

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_Source: https://www.imf.org/-/media/files/publications/cr/2018/cr18140.pdf_