Botswana: Selected Issues

IMF Staff Country Reports, August 31, 2023

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Botswana: Selected Issues

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Bibliographic details

• Published: August 31, 2023
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400252365.002

Overview and context

• Publication date: August 31, 2023
• Main focus: Reforming the state-owned enterprises (SOE) sector in Botswana.
• Core observation: Authorities are committed to diversifying the economy and growing the relative size of the private sector but, until now, progress has been limited.
• Comparative note: Compared to other emerging markets, SOEs operate in similar industries but government ownership is considerably higher in Botswana.
• Institutional setup: Two entities are involved in the oversight and monitoring of SOEs, potentially creating risks of overlap and duplication.

Key findings

• SOE footprint and market functioning
  • Government ownership in Botswana is considerably higher than in comparable emerging markets.
  • The authorities are taking steps to liberalize some sectors as part of efforts to enhance productivity and improve market functioning.
• Institutional risks
  • Dual oversight: Two separate entities are responsible for SOE oversight and monitoring, creating potential risks of overlap and duplication.
• Lessons from past country experiences with SOE reforms
  • Several key ingredients for success are highlighted: a favorable political environment combined with strengthened state oversight and monitoring functions.

Policy options and reform measures observed in other countries

• Regulatory and market measures that countries have implemented:
  • Subjecting SOEs to competition law.
  • Compensating SOEs for public service obligations.
  • Requiring separation of accounts for commercial and noncommercial activities.
  • Setting guidelines for financing decisions.
  • Establishing financial performance targets.

Subjects and keywords (as listed)

• Subject: Economic sectors, Exchange rate arrangements, Exchange rate flexibility, Foreign exchange, Inflation, International organization, Monetary policy, Prices, Public enterprises, Real effective exchange rates
• Keywords: Africa, C. SOE performance, Exchange rate arrangements, Exchange rate flexibility, generation capacity, Global, Inflation, Public enterprises, Real effective exchange rates, SOE assets, SOE health check tool result, SOE profitability

Publication metadata and identifiers

• Pages: 39
• Volume: 2023
• Issue: 318
• Series: Country Report No. 2023/318
• DOI: https://doi.org/10.5089/9798400252365.002
• Stock No: 1BWAEA2023003
• ISBN: 9798400252365
• ISSN: 1934-7685

International Monetary Fund. African Dept. "Botswana: Selected Issues", IMF Staff Country Reports 2023, 318 (2023).

Content in this bundle

• Botswana: Selected Issues; IMF Country Report No. 23/318; July 26, 2023
  • Botswana: Selected Issues; IMF Country Report No. 23/318; July 26, 2023 (Markdown version)
  • Botswana: Selected Issues; IMF Country Report No. 23/318; July 26, 2023 (PDF)