Creating Markets in Botswana - A Diamond in the Rough : Toward a New Strategy for Diversification and Private Sector Growth - Country Private Sector Diagnostic
Diamonds have been at the center of Botswana’s growth miracle for decade - but the urgency to diversify is stronger than ever. Although Botswana’s economy has undergone transformation over the past decades, the shift has been largely into non-trada...
| Main Author: | |
|---|---|
| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2022
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/099729108052228329/IDU07b2e70d90bcce04e0a0b60d04764ad53e99b http://hdl.handle.net/10986/37881 |
| id |
okr-10986-37881 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-378812022-08-15T20:40:37Z Creating Markets in Botswana - A Diamond in the Rough : Toward a New Strategy for Diversification and Private Sector Growth - Country Private Sector Diagnostic International Finance Corporation PRIVATE SECTOR GROWTH DIVERSIFICATION STRATEGY CLIMATE CHANGE COVID-19 INFRASTRUCTURE GAPS EMPLOYMENT GROWTH TRADE POLICIES SECTOR ASSESSMENTS ENERGY WATER TOURISM Diamonds have been at the center of Botswana’s growth miracle for decade - but the urgency to diversify is stronger than ever. Although Botswana’s economy has undergone transformation over the past decades, the shift has been largely into non-tradable services, with limited gains in employment, income equality, and export diversification. In addition, Botswana’s high vulnerability to climate change, which affects all major sectors of the economy, underscores the need to strengthen Botswana’s response to climate factors as a basis for renewed, sustainable growth. A positive growth outlook and steps taken as part of the Coronavirus disease 2019 (COVID-19) crisis response should give the government new impetus to accelerate reforms. Success in diversifying the economy will depend on the decisive implementation of structural measures to increase private sector participation in nonmineral exports and transformative sectors. The dominant role that the government of Botswana still plays in large parts of the economy, particularly through its footprint as a shareholder in companies in the corporate sector, is a critical constraint that inhibits the entry and success of private sector participants. Gaps in infrastructure, access to finance, and skills are additional key constraints to employment and productivity growth. A coordinated approach to financing entrepreneurship and policies to increase uptake of digital finance can help close the gap. Trade barriers are another key cross-cutting constraint for the private sector, and a greener path for the economy can be unlocked by facilitating improved trade in environmental goods and services (EGS). Three key recommendations for the energy sector are as follows. The first recommendation is the fast tracking of instruments to facilitate investment in energy infrastructure development, including independent power producer (IPP) licensing, and procurement guidelines and processes. The second recommendation is the enhancement of the institutional capacity and governance model of the Botswana Energy Regulatory Authority (BERA). The third recommendation is the development of credit-enhancement and risk-mitigation strategies and supporting instruments to attract and mobilize private sector investment. 2022-08-11T18:03:05Z 2022-08-11T18:03:05Z 2022-06 Report http://documents.worldbank.org/curated/en/099729108052228329/IDU07b2e70d90bcce04e0a0b60d04764ad53e99b http://hdl.handle.net/10986/37881 English en_US Country Private Sector Diagnostic; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo International Finance Corporation World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: PSD, Privatization and Industrial Policy Africa Eastern and Southern (AFE) Africa Botswana |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
PRIVATE SECTOR GROWTH DIVERSIFICATION STRATEGY CLIMATE CHANGE COVID-19 INFRASTRUCTURE GAPS EMPLOYMENT GROWTH TRADE POLICIES SECTOR ASSESSMENTS ENERGY WATER TOURISM |
| spellingShingle |
PRIVATE SECTOR GROWTH DIVERSIFICATION STRATEGY CLIMATE CHANGE COVID-19 INFRASTRUCTURE GAPS EMPLOYMENT GROWTH TRADE POLICIES SECTOR ASSESSMENTS ENERGY WATER TOURISM International Finance Corporation Creating Markets in Botswana - A Diamond in the Rough : Toward a New Strategy for Diversification and Private Sector Growth - Country Private Sector Diagnostic |
| geographic_facet |
Africa Eastern and Southern (AFE) Africa Botswana |
| relation |
Country Private Sector Diagnostic; |
| description |
Diamonds have been at the center of
Botswana’s growth miracle for decade - but the urgency to
diversify is stronger than ever. Although Botswana’s economy
has undergone transformation over the past decades, the
shift has been largely into non-tradable services, with
limited gains in employment, income equality, and export
diversification. In addition, Botswana’s high vulnerability
to climate change, which affects all major sectors of the
economy, underscores the need to strengthen Botswana’s
response to climate factors as a basis for renewed,
sustainable growth. A positive growth outlook and steps
taken as part of the Coronavirus disease 2019 (COVID-19)
crisis response should give the government new impetus to
accelerate reforms. Success in diversifying the economy will
depend on the decisive implementation of structural measures
to increase private sector participation in nonmineral
exports and transformative sectors. The dominant role that
the government of Botswana still plays in large parts of the
economy, particularly through its footprint as a shareholder
in companies in the corporate sector, is a critical
constraint that inhibits the entry and success of private
sector participants. Gaps in infrastructure, access to
finance, and skills are additional key constraints to
employment and productivity growth. A coordinated approach
to financing entrepreneurship and policies to increase
uptake of digital finance can help close the gap. Trade
barriers are another key cross-cutting constraint for the
private sector, and a greener path for the economy can be
unlocked by facilitating improved trade in environmental
goods and services (EGS). Three key recommendations for the
energy sector are as follows. The first recommendation is
the fast tracking of instruments to facilitate investment in
energy infrastructure development, including independent
power producer (IPP) licensing, and procurement guidelines
and processes. The second recommendation is the enhancement
of the institutional capacity and governance model of the
Botswana Energy Regulatory Authority (BERA). The third
recommendation is the development of credit-enhancement and
risk-mitigation strategies and supporting instruments to
attract and mobilize private sector investment. |
| format |
Report |
| author |
International Finance Corporation |
| author_facet |
International Finance Corporation |
| author_sort |
International Finance Corporation |
| title |
Creating Markets in Botswana - A Diamond in the Rough : Toward a New Strategy for Diversification and Private Sector Growth - Country Private Sector Diagnostic |
| title_short |
Creating Markets in Botswana - A Diamond in the Rough : Toward a New Strategy for Diversification and Private Sector Growth - Country Private Sector Diagnostic |
| title_full |
Creating Markets in Botswana - A Diamond in the Rough : Toward a New Strategy for Diversification and Private Sector Growth - Country Private Sector Diagnostic |
| title_fullStr |
Creating Markets in Botswana - A Diamond in the Rough : Toward a New Strategy for Diversification and Private Sector Growth - Country Private Sector Diagnostic |
| title_full_unstemmed |
Creating Markets in Botswana - A Diamond in the Rough : Toward a New Strategy for Diversification and Private Sector Growth - Country Private Sector Diagnostic |
| title_sort |
creating markets in botswana - a diamond in the rough : toward a new strategy for diversification and private sector growth - country private sector diagnostic |
| publisher |
World Bank, Washington, DC |
| publishDate |
2022 |
| url |
http://documents.worldbank.org/curated/en/099729108052228329/IDU07b2e70d90bcce04e0a0b60d04764ad53e99b http://hdl.handle.net/10986/37881 |
| _version_ |
1764488033057374208 |