Abstract
Botswana's diamond endowment and its track record of good macroeconomic policy management and political stability contributed to high average economic growth and strong fiscal and balance of payments positions in recent years. Beyond these achievements, the authorities see a need to reduce unemployment, eliminate water and electricity shortages, and improve the efficiency of government operations. In addition, given the limits of the diamond and public sector-based growth model (diamond reserves could be exhausted by 2050 and inefficiencies in the public sector), a wave of reforms is called for to foster the development of the private sector, diversify the economy, and improve the skills of the labor force.
Fund Relations
(As of February 9, 2016)
Membership Status
Joined July 24, 1968; Article VIII
General resources account
| SDR (million) | Percent of Quota | |
|---|---|---|
| Quota | 87.80 | 100.00 |
| Fund holdings of currency | 60.53 | 68.94 |
| Reserve position in Fund | 27.28 | 31.07 |
| SDR (million) | Percent of Quota | |
|---|---|---|
| Quota | 87.80 | 100.00 |
| Fund holdings of currency | 60.53 | 68.94 |
| Reserve position in Fund | 27.28 | 31.07 |
SDR Department
| SDR (million) | Percent of Quota | |
|---|---|---|
| Net cumulative allocation | 57.43 | 100.00 |
| Holdings | 85.70 | 149.21 |
| SDR (million) | Percent of Quota | |
|---|---|---|
| Net cumulative allocation | 57.43 | 100.00 |
| Holdings | 85.70 | 149.21 |
Outstanding Purchases and Loans None
Financial Arrangements None
Project Obligations to Fund None
Implementation of HIPC Initiative Not Applicable
Implementation of Multilateral Debt Relief Initiative Not Applicable
Implementation of Catastrophe Containment and Relief Not Applicable
Exchange Rate Arrangements
The exchange rate of the Botswana pula is a crawling peg arrangement against a basket of currencies. As of February 4, 2016, the exchange rate of the U.S. dollar to the pula was US$1= P11.28, and that of the South African rand to the pula was R1=P0.71.
Botswana accepted the obligations of Article VIII, Sections 2, 3, and 4 of the Fund’s Articles of Agreement, as of November 17, 1995, and maintains an exchange rate system free of restrictions in the making of transfers and payments of current account transactions.
Article IV consultation
Botswana is on a standard 12-month consultation cycle. The last Article IV consultation was concluded by the Executive Board on July 3, 2014 on a lapse of time basis.
Technical assistance
| Department | Dates | Purpose |
|---|---|---|
| FAD | May 2013-May 2014 | Macro-fiscal Advisor |
| January 2014 | CU regional harmonisation and trade facilitation | |
| February-March 2014 | Organization structure to enhance efficiency of tax administration | |
| August 2014 | Property Tax | |
| August 2014 | Medium-Term Expenditure Framework and EU project review | |
| November-December 2014 | IPSAS Accrual Accounting and Reporting | |
| December 2014 | Customs Administration | |
| February 2015 | Review the Domestic Tax business processes, Tax Administration | |
| March 2015 | Customs Administration | |
| March-April 2015 | Medium-Term Expenditure Framework | |
| May-June 2015 | Cash Management | |
| May-June 2015 | Public Asset Management Policy Framework | |
| June 2015 | Medium-Term Expenditure Framework | |
| July 2015 | Tax Administration | |
| July-August 2015 | Accrual accounting and reporting | |
| October 2015 | Customs Administration | |
| October 2015 | Medium-Term Expenditure Framework | |
| LEG | February 2016 | Fiscal Law |
| STA | May 2014 | AfDB Open Data Initiative for Data Submission |
| January 2015 | National Accounts Statistics | |
| June 2015 | GDDS/NSDP Development | |
| June-July 2015 | National Accounts | |
| August 2015 | Government Finance Statistics | |
| November 2015 | e-GDDS Implementation | |
| January 2016 | Price Statistics | |
| MCM | October 2014 | Multi-Topic TA Needs Assessment Mission |
| February-March 2015 | Non-Bank Deposit Taking Institutions Regulation and Supervision | |
| April 2015 | Macro Economic Modeling | |
| June 2015 | Payments and Settlement System - Overnight and Regulation | |
| July-August 2015 | Non-Bank Deposit Taking Institutions Regulation and Supervision | |
| September 2015 | Macro Economic Modeling | |
| October 2015 | Payments and Settlement System - Overnight and Regulation | |
| March 2016 | Macro Economic Modeling |
| Department | Dates | Purpose |
|---|---|---|
| FAD | May 2013-May 2014 | Macro-fiscal Advisor |
| January 2014 | CU regional harmonisation and trade facilitation | |
| February-March 2014 | Organization structure to enhance efficiency of tax administration | |
| August 2014 | Property Tax | |
| August 2014 | Medium-Term Expenditure Framework and EU project review | |
| November-December 2014 | IPSAS Accrual Accounting and Reporting | |
| December 2014 | Customs Administration | |
| February 2015 | Review the Domestic Tax business processes, Tax Administration | |
| March 2015 | Customs Administration | |
| March-April 2015 | Medium-Term Expenditure Framework | |
| May-June 2015 | Cash Management | |
| May-June 2015 | Public Asset Management Policy Framework | |
| June 2015 | Medium-Term Expenditure Framework | |
| July 2015 | Tax Administration | |
| July-August 2015 | Accrual accounting and reporting | |
| October 2015 | Customs Administration | |
| October 2015 | Medium-Term Expenditure Framework | |
| LEG | February 2016 | Fiscal Law |
| STA | May 2014 | AfDB Open Data Initiative for Data Submission |
| January 2015 | National Accounts Statistics | |
| June 2015 | GDDS/NSDP Development | |
| June-July 2015 | National Accounts | |
| August 2015 | Government Finance Statistics | |
| November 2015 | e-GDDS Implementation | |
| January 2016 | Price Statistics | |
| MCM | October 2014 | Multi-Topic TA Needs Assessment Mission |
| February-March 2015 | Non-Bank Deposit Taking Institutions Regulation and Supervision | |
| April 2015 | Macro Economic Modeling | |
| June 2015 | Payments and Settlement System - Overnight and Regulation | |
| July-August 2015 | Non-Bank Deposit Taking Institutions Regulation and Supervision | |
| September 2015 | Macro Economic Modeling | |
| October 2015 | Payments and Settlement System - Overnight and Regulation | |
| March 2016 | Macro Economic Modeling |
Joint World Bank and IMF Work Program
(As of February 9, 2016)
| Title | Products | IBRD $ Million | Provisional Timing of Missions |
|---|---|---|---|
| A. Mutual Information on Relevant Work Programs | |||
| World Bank indicative work program in the next 12 months | Current Lending
| 186 | January 31, 2020 |
Proposed Lending
| 150 30 50 40 | FY16-17 FY17-18 FY17-19 FY18 | |
Analytical and Advisory Assistance (ongoing)
Global Value Chain Analysis | FY13-16 FY14-15 FY15-16 FY15-17 FY15-17 FY15-16 FY15-16 FY15-16 FY15-16 FY15-16 | ||
| IMF work program in the next 12 months | Article IV Consultation | FY2017 | |
Technical Assistance
| FY2017 | ||
| Title | Products | IBRD $ Million | Provisional Timing of Missions |
|---|---|---|---|
| A. Mutual Information on Relevant Work Programs | |||
| World Bank indicative work program in the next 12 months | Current Lending
| 186 | January 31, 2020 |
Proposed Lending
| 150 30 50 40 | FY16-17 FY17-18 FY17-19 FY18 | |
Analytical and Advisory Assistance (ongoing)
Global Value Chain Analysis | FY13-16 FY14-15 FY15-16 FY15-17 FY15-17 FY15-16 FY15-16 FY15-16 FY15-16 FY15-16 | ||
| IMF work program in the next 12 months | Article IV Consultation | FY2017 | |
Technical Assistance
| FY2017 | ||
Statistical Issues
| I. Assessment of Data Adequacy for Surveillance |
| General: Data provision is adequate for surveillance, albeit there are some data shortcomings in national accounts, fiscal, monetary, and external sector statistics in terms of accuracy and reliability of the source data and the statistical techniques used in the compilation of national accounts, government finance, and balance of payments statistics. The timeliness of the central bank survey and detailed government expenditure data by economic classification could be improved to better support economic analysis. Further improvements would include dissemination of readily available information on monthly production of diamonds and quarterly aggregate financial soundness indicators. The authorities are working on a number of fronts to improve data quality and dissemination: (i) source data and methodologies are being reviewed for those data with obvious estimation problems/gaps, (ii) stronger collaboration is being sought among source data producers to secure consistency and reconcile discrepancies across data sets; (iii) the production of leading economic indicators is currently underway; and (iv) staff shortages are being addressed. |
| National Accounts: In October 2012, Statistics Botswana (SB) announced revised time series of GDP rebased to 2006 as a new benchmark year. In addition, SB revised the national accounts in 2015 to include new mines in the GDP estimates. With this correction, the 2013 real growth rate has been revised upwards to 9.9 percent from the previous value of 5.9 percent. There are some areas for further improvements, which include representativeness of the coverage of national accounts surveys and estimations of the GDP deflators. In addition, more frequent household surveys (the last conducted in FY 2009/10) would help improve data on poverty, income, and unemployment. |
| Price Statistics: The monthly consumer price index (CPI) is available on a timely basis in the SB’s website. The index is comprehensive and provides breakdowns between urban and rural price data and between prices of tradable and non-tradable goods and services. Currently SB is working to update the CPI weights based on the recent Household Income and Expenditure Survey. Compilation challenges include the eventual inclusion of owner-occupied housing price data in the CPI. The compilation of producer or wholesale prices has been discontinued. |
| Government Finance Statistics: The concepts and definitions used in compiling government finance statistics generally follow the guidelines of the IMF’s 1986 Government Finance Statistics Manual (GFSM 1986) but cover only budgetary central government activities. No fiscal statistics are compiled for extra budgetary institutions, consolidated central government, or consolidated general government. No decision has been made on a “migration path” to the GFSM 2001 methodology, although the authorities are working with the Statistics Department toward that endeavor. Recurrent and development expenditure data are published with a significant lag, while development spending comprises a mixture of current and capital spending. |
| Monetary and Financial Statistics: Compilation practices are consistent with the Fund’s Monetary and Financial Statistics Manual. The central bank survey is currently available with a lag of usually about three months, which is well short of the two-week period recommended in the SDDS. STA’s recommendation is to make preliminary data available with clear identification of data status. The authorities prefer a more cautious approach to data dissemination to avoid reputation damage if the data require revisions. The BoB is seeking to expand the coverage of financial statistics to include the operations of nonbank financial intermediaries (NBFI), such as pension funds, insurance companies, and other financial corporations, such as unit trusts, finance companies, and financial auxiliaries. STA’s recommendation is to focus on data collection in a handful of large institutions within each NBFI category. |
| Balance of Payments and International Investment Position Statistics: Annual and quarterly balance of payments data are published in the Botswana Financial Statistics (BF) and the BoB’s Annual Report. Preliminary data are generally disseminated within two months of the end of the reporting period, while revised (final) data are available after nine months. The concepts, structure, and definitions of the balance of payments statistics follow the fifth edition of the Balance of Payments Statistics Manual (BPM5). Source data are broadly adequate, but the International Transaction Reporting System (ITRS) data—as opposed to alternative survey data on services and transfer items in the current account—has become unreliable. Data compilation, estimation, and adjustments mostly employ sound techniques, but the methods used for estimating missing data (for example, unrecorded trade), f.o.b. /c.i.f. adjustment factors to import values, and flows from stock data are inadequate. Discrepancies exist in trade statistics data concerning: (i) the valuation of diamond exports and imports and (ii) imports, exports, and payments related to settlements within the Southern African Customs Union (SACU). Following the relocation of De Beers’ London operations, the compilation challenges associated with the appropriate treatment of diamond related re-export trade emerged both in the national accounts and balance of payments. These problems are likely behind large errors and omissions. The BoB conducts an annual survey of Botswana’s investment and international investment position (IIP). A quarterly IIP survey is also produced for internal use with data from the ITRS. |
| II. Data Standards and Quality |
| Botswana was the first country to implement the Enhanced General Data Dissemination System (e-GDDS) in January 2016. Essential macroeconomic data are available through the National Summary Data Page (NSDP), currently on the central bank website, utilizing the Open Data Platform installed with the support of the African Development Bank. A Data ROSC and its updates were published in April 2002, March 2004, and April 2007, respectively. |
| III. Reporting to STA |
| Monetary data are reported for publication in International Financial Statistics using Standardized Report Forms and Botswana reports annual balance of payments and IIP data to STA. No government financial statistics are currently reported for publication in the Government Finance Statistics Yearbook. |
| I. Assessment of Data Adequacy for Surveillance |
| General: Data provision is adequate for surveillance, albeit there are some data shortcomings in national accounts, fiscal, monetary, and external sector statistics in terms of accuracy and reliability of the source data and the statistical techniques used in the compilation of national accounts, government finance, and balance of payments statistics. The timeliness of the central bank survey and detailed government expenditure data by economic classification could be improved to better support economic analysis. Further improvements would include dissemination of readily available information on monthly production of diamonds and quarterly aggregate financial soundness indicators. The authorities are working on a number of fronts to improve data quality and dissemination: (i) source data and methodologies are being reviewed for those data with obvious estimation problems/gaps, (ii) stronger collaboration is being sought among source data producers to secure consistency and reconcile discrepancies across data sets; (iii) the production of leading economic indicators is currently underway; and (iv) staff shortages are being addressed. |
| National Accounts: In October 2012, Statistics Botswana (SB) announced revised time series of GDP rebased to 2006 as a new benchmark year. In addition, SB revised the national accounts in 2015 to include new mines in the GDP estimates. With this correction, the 2013 real growth rate has been revised upwards to 9.9 percent from the previous value of 5.9 percent. There are some areas for further improvements, which include representativeness of the coverage of national accounts surveys and estimations of the GDP deflators. In addition, more frequent household surveys (the last conducted in FY 2009/10) would help improve data on poverty, income, and unemployment. |
| Price Statistics: The monthly consumer price index (CPI) is available on a timely basis in the SB’s website. The index is comprehensive and provides breakdowns between urban and rural price data and between prices of tradable and non-tradable goods and services. Currently SB is working to update the CPI weights based on the recent Household Income and Expenditure Survey. Compilation challenges include the eventual inclusion of owner-occupied housing price data in the CPI. The compilation of producer or wholesale prices has been discontinued. |
| Government Finance Statistics: The concepts and definitions used in compiling government finance statistics generally follow the guidelines of the IMF’s 1986 Government Finance Statistics Manual (GFSM 1986) but cover only budgetary central government activities. No fiscal statistics are compiled for extra budgetary institutions, consolidated central government, or consolidated general government. No decision has been made on a “migration path” to the GFSM 2001 methodology, although the authorities are working with the Statistics Department toward that endeavor. Recurrent and development expenditure data are published with a significant lag, while development spending comprises a mixture of current and capital spending. |
| Monetary and Financial Statistics: Compilation practices are consistent with the Fund’s Monetary and Financial Statistics Manual. The central bank survey is currently available with a lag of usually about three months, which is well short of the two-week period recommended in the SDDS. STA’s recommendation is to make preliminary data available with clear identification of data status. The authorities prefer a more cautious approach to data dissemination to avoid reputation damage if the data require revisions. The BoB is seeking to expand the coverage of financial statistics to include the operations of nonbank financial intermediaries (NBFI), such as pension funds, insurance companies, and other financial corporations, such as unit trusts, finance companies, and financial auxiliaries. STA’s recommendation is to focus on data collection in a handful of large institutions within each NBFI category. |
| Balance of Payments and International Investment Position Statistics: Annual and quarterly balance of payments data are published in the Botswana Financial Statistics (BF) and the BoB’s Annual Report. Preliminary data are generally disseminated within two months of the end of the reporting period, while revised (final) data are available after nine months. The concepts, structure, and definitions of the balance of payments statistics follow the fifth edition of the Balance of Payments Statistics Manual (BPM5). Source data are broadly adequate, but the International Transaction Reporting System (ITRS) data—as opposed to alternative survey data on services and transfer items in the current account—has become unreliable. Data compilation, estimation, and adjustments mostly employ sound techniques, but the methods used for estimating missing data (for example, unrecorded trade), f.o.b. /c.i.f. adjustment factors to import values, and flows from stock data are inadequate. Discrepancies exist in trade statistics data concerning: (i) the valuation of diamond exports and imports and (ii) imports, exports, and payments related to settlements within the Southern African Customs Union (SACU). Following the relocation of De Beers’ London operations, the compilation challenges associated with the appropriate treatment of diamond related re-export trade emerged both in the national accounts and balance of payments. These problems are likely behind large errors and omissions. The BoB conducts an annual survey of Botswana’s investment and international investment position (IIP). A quarterly IIP survey is also produced for internal use with data from the ITRS. |
| II. Data Standards and Quality |
| Botswana was the first country to implement the Enhanced General Data Dissemination System (e-GDDS) in January 2016. Essential macroeconomic data are available through the National Summary Data Page (NSDP), currently on the central bank website, utilizing the Open Data Platform installed with the support of the African Development Bank. A Data ROSC and its updates were published in April 2002, March 2004, and April 2007, respectively. |
| III. Reporting to STA |
| Monetary data are reported for publication in International Financial Statistics using Standardized Report Forms and Botswana reports annual balance of payments and IIP data to STA. No government financial statistics are currently reported for publication in the Government Finance Statistics Yearbook. |
Botswana: Common Indicators Required for Surveillance
(As of March 1, 2016)
Daily (D), weekly (W), monthly (M), quarterly (Q), annually (A), irregular (I), and not available (NA).
Reflects the assessment provided in the data ROSC published on April 6, 2007, and based on the findings of the mission that took place in October-November 2006, for the data set corresponding to the variable in each row. The assessment indicates whether international standards concerning (respectively) concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), not observed (NO), or not available (NA).
Same as footnote 2, except referring to international standards concerning (respectively) source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount, money market, treasury bill, note, and bond rates.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local
Including currency and maturity composition.
Botswana: Common Indicators Required for Surveillance
(As of March 1, 2016)
| Date of Latest Observation | Date Received | Freq. of Data1 | Freq. of Reporting1 | Freq. of Publication1 | Memo Items | ||
|---|---|---|---|---|---|---|---|
| Data Quality— Methodological Soundness2 | Data Quality— Accuracy and Reliability3 | ||||||
| Exchange rates | Mar, 2016 | 3/14/2016 | D | D | D | ||
| International reserve assets and reserve liabilities of the monetary authorities 4 | Dec, 2015 | 3/1/2016 | M | M | M | ||
| Reserve/base money | Dec, 2015 | 3/1/2016 | M | M | M | O, O, LO, O | LNO, O, LO, LO, LO |
| Broad money | Dec, 2015 | 3/1/2016 | M | M | M | ||
| Central bank balance sheet | Dec, 2015 | 3/1/2016 | M | M | M | ||
| Consolidated balance sheet of the banking system | Dec, 2015 | 3/1/2016 | M | M | |||
| Interest rates 5 | Dec, 2015 | 3/1/2016 | M | M | M | ||
| Consumer price index | Jan, 2016 | 2/1/2016 | M | M | M | O, LO, O, O | LO, LO, LO, LO, O |
| Revenue, expenditure, balance, and composition of financing 6—general government 7 | NA | NA | LO, LNO, LNO, LO | LO, O, LO, LO, LNO | |||
| Revenue, expenditure, balance, and composition of financing 6—central government | Oct, 2015 | Feb-16 | A/Q/M | Q | Q | ||
| Stocks of central government and central government-guaranteed debt 8 | Sep, 2015 | Jan-16 | A | A | A | ||
| External current account balance | 2015Q3 | Jan-16 | A/Q | A | A | O, O, O, LO | LO, LO, LNO, O, LO |
| Exports and imports of goods | 2015Q4 | Feb-16 | M | M | M | LO, LO, LNO, LO, LO | |
| GDP/GNP | 2015Q3 | Feb-16 | A/Q | A/Q | A/Q | LO, LO, LNO, LO | |
| Gross external debt | 2015Q2 | Dec-15 | A/Q | A | A | ||
Daily (D), weekly (W), monthly (M), quarterly (Q), annually (A), irregular (I), and not available (NA).
Reflects the assessment provided in the data ROSC published on April 6, 2007, and based on the findings of the mission that took place in October-November 2006, for the data set corresponding to the variable in each row. The assessment indicates whether international standards concerning (respectively) concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), not observed (NO), or not available (NA).
Same as footnote 2, except referring to international standards concerning (respectively) source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount, money market, treasury bill, note, and bond rates.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local
Including currency and maturity composition.
Botswana: Common Indicators Required for Surveillance
(As of March 1, 2016)
| Date of Latest Observation | Date Received | Freq. of Data1 | Freq. of Reporting1 | Freq. of Publication1 | Memo Items | ||
|---|---|---|---|---|---|---|---|
| Data Quality— Methodological Soundness2 | Data Quality— Accuracy and Reliability3 | ||||||
| Exchange rates | Mar, 2016 | 3/14/2016 | D | D | D | ||
| International reserve assets and reserve liabilities of the monetary authorities 4 | Dec, 2015 | 3/1/2016 | M | M | M | ||
| Reserve/base money | Dec, 2015 | 3/1/2016 | M | M | M | O, O, LO, O | LNO, O, LO, LO, LO |
| Broad money | Dec, 2015 | 3/1/2016 | M | M | M | ||
| Central bank balance sheet | Dec, 2015 | 3/1/2016 | M | M | M | ||
| Consolidated balance sheet of the banking system | Dec, 2015 | 3/1/2016 | M | M | |||
| Interest rates 5 | Dec, 2015 | 3/1/2016 | M | M | M | ||
| Consumer price index | Jan, 2016 | 2/1/2016 | M | M | M | O, LO, O, O | LO, LO, LO, LO, O |
| Revenue, expenditure, balance, and composition of financing 6—general government 7 | NA | NA | LO, LNO, LNO, LO | LO, O, LO, LO, LNO | |||
| Revenue, expenditure, balance, and composition of financing 6—central government | Oct, 2015 | Feb-16 | A/Q/M | Q | Q | ||
| Stocks of central government and central government-guaranteed debt 8 | Sep, 2015 | Jan-16 | A | A | A | ||
| External current account balance | 2015Q3 | Jan-16 | A/Q | A | A | O, O, O, LO | LO, LO, LNO, O, LO |
| Exports and imports of goods | 2015Q4 | Feb-16 | M | M | M | LO, LO, LNO, LO, LO | |
| GDP/GNP | 2015Q3 | Feb-16 | A/Q | A/Q | A/Q | LO, LO, LNO, LO | |
| Gross external debt | 2015Q2 | Dec-15 | A/Q | A | A | ||
Daily (D), weekly (W), monthly (M), quarterly (Q), annually (A), irregular (I), and not available (NA).
Reflects the assessment provided in the data ROSC published on April 6, 2007, and based on the findings of the mission that took place in October-November 2006, for the data set corresponding to the variable in each row. The assessment indicates whether international standards concerning (respectively) concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), not observed (NO), or not available (NA).
Same as footnote 2, except referring to international standards concerning (respectively) source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount, money market, treasury bill, note, and bond rates.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local
Including currency and maturity composition.