Botswana: Technical Assistance Report-Public Investment Management Assessment
IMF Staff Country Reports, July 6, 2017
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- Botswana: Technical Assistance Report-Public Investment Management Assessment
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Bibliographic details
- Published: July 6, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484307489.002
Overview
- This Technical Assistance Report presents an assessment of public investment management in Botswana.
- Botswana’s public investment has been consistently high for the past 25 years.
- Public investment has been coupled with prudent fiscal policy and moderate debt at about 10 percent of GDP.
- Relatively high public investment spending has contributed to steady accumulation of capital stock—almost three times more per capita than peers and emerging market averages.
- More than 60 percent of investment is spent on economic affairs.
- While Botswana performed better than peer and emerging market averages up to 2010, more recently, indicators of infrastructure quality suggest significant bottlenecks, particularly in access to electricity supply and railways.
Key findings on public investment levels and outcomes
- Public investment consistently high over the past 25 years.
- Capital stock accumulation: almost three times more per capita than peers and emerging market averages.
- Composition of investment: more than 60 percent directed to economic affairs.
- Fiscal framework and debt: prudent fiscal policy with moderate debt at about 10 percent of GDP.
Infrastructure quality and bottlenecks
- Performance relative to peers:
- Better than peer and emerging market averages up to 2010.
- Post-2010 indicators point to significant infrastructure bottlenecks.
- Specific bottlenecks identified:
- Access to electricity supply.
- Railways.
Implications (as reflected in the assessment)
- High and sustained public investment has supported capital accumulation but recent infrastructure indicators signal deteriorating performance in key sectors.
- The concentration of investment in economic affairs suggests prioritization consistent with growth objectives, but bottlenecks in electricity and railways may constrain future economic performance.
Source: Botswana: Technical Assistance Report—Public Investment Management Assessment (IMF Staff Country Reports 2017, No. 188).
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- Country Report