## BOTSWANA — Report on the National Accounts Mission (JULY 2020) ## Source details **Canonical URL:** [BOTSWANA — Report on the National Accounts Mission (JULY 2020)](https://www.imf.org/-/media/files/publications/cr/2020/english/1bwaea2020003.pdf) ## Other formats - [Markdown version](/-/media/files/publications/cr/2020/english/1bwaea2020003.pdf.md) - [Structured JSON version](/-/media/files/publications/cr/2020/english/1bwaea2020003.pdf.json) --- ### Mission outcomes and priority recommendations - A technical assistance (TA) mission was conducted by IMF’s Regional Technical Assistance Center for Southern Africa (AFS) during June 8–12, 2020 to assist Statistics Botswana (SB) in improving the quality of the national accounts statistics. The mission was conducted remotely due to COVID-19 constraints. - Rebasing of the national accounts to a base year of 2016 is underway; rebasing every five years is recommended and requires comprehensive surveys and ideally supply and use tables (SUT) to support coherence checking. - SB has advanced the statistical frame and associated weights for compiling gross value added (GVA) estimates from the economic survey but must update weights using respondents only. - The Botswana Unified Revenue Service (BURS) taxpayer list will be used as the frame for the economic survey; alignment between SB large-business units and BURS large taxpayer units remains incomplete and must be resolved. - Finance sector GVA estimation improved; direct charges were included and FISIM implemented, but follow-up with the Bank of Botswana (BoB) is required on: - insurance commissions included in output (need to determine exact nature and inclusion), - a significant drop in professional fees from 2016 affecting intermediate consumption and GVA (determine if real or misclassification). - Wage Cost Index (WCI) was compiled; a weighted index was recommended and completed during the mission. - Supplementary surveys for trade services and construction were delayed due to COVID-19 lockdowns; data collection originally to be completed by April 2020 revised to September 2020, with further delays after a lockdown announced on June 12, 2020. Priority recommendations (Table 1) - June 2020 — Determine the statistical frame and weights for the economic survey. — Responsible: SB - September 2020 — Undertake additional specialized surveys to collect missing product data and large business data. — Responsible: SB - September 2020 — Compilation of rebased annual GDP by production and expenditure estimates. — Responsible: SB Recommended short-term actions - SB to update the weights and identify industries where there is no representation. - SB to work with BURS and make every effort to get data for all large businesses. - SB to update the grossing up factors in the worksheets once the new weights have been developed. - SB to meet with BoB to resolve data issues in estimating the financial sector. ### Annual national accounts rebase — findings and actions - Rebasing base year: 2016. - Economic census phases: - Business listing exercise (2016) identified 14,452 establishments (excluding branches). - Economic census (2017) response: 3,145 establishments. - SB supplemented the frame with approximately 500 large establishments identified from BURS large taxpayer unit and other offices; no further reconciliation with the taxpayer list was performed at that time. - Reconciliation progress: - SB identified 27,248 active taxpayers and matched to 25,400 using the Tax Identification Number (TIN). - Weighting/grossing up issues: - SB determined grossing up factors but initially calculated weights using 14,452 units rather than the 3,145 respondents; SB is updating weights and will identify industries lacking representation. - The SB list of large businesses includes fewer units than the BURS list; SB must work with BURS to obtain data for these additional large units. - GVA compilation status: - GVA worksheets for industries covered by the economic survey were developed and populated with survey data and grossing up factors; grossing up factors will be updated after weight revisions. - SB compiles GVA for industries not reliant on the economic survey (public administration, public health, public education; finance and insurance). - WCI was completed for each industry; mission recommended a weighted index (taking into account number of employees and average salaries by grade), which was completed during the mission. - Finance and insurance: direct charges included; further validation with BoB required on insurance commissions and professional fees. Recommended actions for rebase - Update weights based on respondents and identify unrepresented industries. - Reconcile and obtain large-business data from BURS. - Update grossing up factors after weight revisions. - Meet with BoB to resolve financial sector data issues. ### Supply and Use Tables (SUT) — status and recommendations - SB is planning to compile SUT as part of the rebasing exercise; SUTs enable balancing GDP measures and produce input-to-output ratios used in GVA compilation. - Product-level data for SUTs are not available administratively and must be collected by survey; most economic survey instruments provided required data but specialized follow-ups are needed for trade services, transport, construction, and manufacturing. - Survey progress: - Manufacturing survey: complete. - Transport questionnaire design: ongoing, to be finalized by end of June 2020; data collection to be complete by end of September 2020. - Trade services and construction surveys: delayed by COVID-19 lockdown; instruments updated and confirmed suitable; mission recommended that SB staff accompany enumerators to construction companies due to conceptual measurement difficulty. - Further lockdown announced on the evening of June 12, 2020 will cause additional delays; SB may need to consider alternate data collection methods using virtual technology. - Technical support: Mr. Jan Redeby (Africa Development Bank consultant) is assisting and incorporating SUT within the NADABAS system used to compile the ANA. Recommended actions for SUT - SB to undertake specialized surveys for retail trade and construction industries. - SB to consider alternate data collection methods utilizing virtual technology. ### Detailed technical assessment, milestones, and dissemination plan (Results Based Framework) Objective: Strengthen compilation and dissemination of macroeconomic and financial statistics consistent with relevant internationally accepted statistical standards. Selected milestones, target completion dates, and status/comments: - Assessment of deviations to the 2008 SNA and relevant changes needed — March 29, 2019 — Complete. - Statistical frame and weights determined and applied to economic survey — March 31, 2020 — Ongoing; further work required on large business population and calculation of weights; change date to June 30, 2020. - Compilation of rebased GDP by production estimates — June 30, 2020 — Ongoing; GVA for finance and WCI near completion; mini surveys for construction and trade underway; change date to September 30, 2020. - Compilation of rebased GDP by expenditure estimates — June 30, 2020 — Ongoing; change date to September 30, 2020. - SUT populated and balanced — November 30, 2020 — Ongoing; SUT framework being built into NADABS and population has commenced. - Dissemination of rebased GDP estimates — January 31, 2021. - Disseminate backcast series from 2006 to 2016 (the new base year) — March 31, 2021 — New milestone. - Disseminate backcast series from 1994 to 2016 (the new base year) — June 30, 2021 — New milestone. Higher-frequency national accounts milestones: - Review quarterly GDP methodologies and data sources — September 30, 2020 — Ongoing; date to change to December 31, 2020 due to Covid-19 impact. - Dissemination of revised quarterly GDP estimates based on the rebased annual national accounts — March 31, 2021. ### Officials met during the mission - Ketso Makhumalo — Statistics Botswana (Acting Director of Economic Statistics) — kmakhumalo@statsbots.org.bw - Lekoko Simako — Statistics Botswana — lsimako@statsbots.org.bw - Winsten Kabo — Statistics Botswana — wkabo@statsbots.org.bw - Chandler Madisa — Statistics Botswana — chmadisa@statsbots.org.bw - Boitumelo Kobua — Statistics Botswana — bkobua@statsbots.org.bw - Phemelo Ntwayapelo — Statistics Botswana — pntwayapelo@statsbots.gov.bw - Godiraone Gaolaolwe — Statistics Botswana — ggaolaolwe@statsbots.gov.bw - Michael Andina — Statistics Botswana — mandina@statsbots.org.bw *IMF Country Report No. 20/303 — BOTSWANA: Technical Assistance Report — Report on the National Accounts Mission, JULY 2020.* --- _Source: https://www.imf.org/-/media/files/publications/cr/2020/english/1bwaea2020003.pdf_