Stanbic Bank Quarterly Economic Review - Second Issue 2020
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Stanbic Bank Quarterly Economic Review
Stanbic Bank
Quarterly Economic
Review
Second Issue
2020
1
Stanbic Bank Quarterly Economic Review 2
Stanbic Bank Quarterly Economic Review
Stanbic Bank Quarterly Economic Review,
Second Issue 2020
This second issue for 2020 of the Stanbic Bank Botswana Quarterly Economic Review focuses on
the performance and outlook of the economy of Botswana. The first article assesses the current state
of the economy, and the likely development of the overall and sectoral economy in the advent of novel
coronavirus. The paper projects a deep economic downturn in 2020 and a ‘bird wing’ recovery in 2021.
The focus in the second article is on the impact of COVID-19 on Botswana’s tourism. Importantly,
the paper looks at ways in which the sector can boost domestic demand in the short to medium-
term, not only to mitigate the impact of COVID-19, but also to expand the base for future growth.
It argues that the domestic tourism market remains largely untapped, with operators focusing on
international tourism. The third paper presents the potential macroeconomic and sectoral economic
impact of COVID-19 on the Botswana economy obtained by undertaking simulations with a dynamic
computable general equilibrium model of economy, energy and environmental interactions. The
quantitative estimates show that the economic adjustment costs engendered by COVID-19 would be
quite large for Botswana: the loss in gross domestic product (GDP) would be 23.1 percent of the pre-
COVID-19’s GDP of P135,386.5 million; household welfare would be 31 percent below the benchmark;
the households in urban villages would experience relatively large loss in income whereas those in
rural areas would lose out relatively less of their incomes; and, the fall in employment would be highly
concentrated on professional & technical employees, followed by unskilled labour. This is largely due
to the structure of the economy, i.e., the linkages among sectors and institutions. The last article
argues that the adoption and utilization of digital platforms in the economy accelerated beyond
the banking sector, where it was already prominent, during the lockdown period, including among
small businesses. The paper posits that this is a positive development given the benefits of digital
technologies and, indeed, e-commerce. It proceeds to explore ways in which this positive trend can
be sustained to the benefit of businesses, customers, and the economy at large.
3
Stanbic Bank Quarterly Economic Review 4
Stanbic Bank Quarterly Economic Review
CORONAVIRUS
AND PROSPECTS
OF ECONOMIC
DEVELOPMENT OF
BOTSWANA
Dr. O. Mothobi and Dr. J.B. Tlhalefang
Department of Economics
University of Botswana
Owing to the outbreak of the novel coronavirus Monetary Fund (IMF) pointed out, this pandemic
(COVID-19)
¹ and its associated containment is the greatest economic calamity since the Great
measures imposed to safeguard human lives, Depression. Worth underlining is that in the last
the prospects for Botswana’s economy have twenty years, the world has witnessed sporadic
enormously worsened since the publication of outbreaks of infectious diseases that resulted
the previous issue of the Stanbic Bank Quarterly in public health and economic crisis. Included in
Economic Review (QER). COVID-19 was declared such novel virus infections are HIV in the 1990s,
a global pandemic on the 11th March 2020 by the severe acute respiratory syndrome (SARS-CoV1)
World Health Organization, which is the body that in 2003, Influenza A virus subtype H1N1 in 2009,
coordinates global efforts to manage its impact. Influenza A virus subtype H5N1, MERS-CoV in
2012, Ebola in 2014 and Zika in 2016. This begs
Undoubtedly, COVID-19, which is caused by a the question: Why has the world increasingly
strain of the severe acute respiratory syndrome become more prone to the frequent emergence
(SARS-CoV2), is decimating global economic of infectious diseases in recent years? Eliminating
activity in an unparalleled way. As the International or substantially reducing similar phenomena
1
Hereafter, the term COVID-19 is used interchangeably to refer to the virus, the disease or the epidemic outbreak.
5
Stanbic Bank Quarterly Economic Review
CORONAVIRUS AND PROSPECTS OF ECONOMIC
DEVELOPMENT OF BOTSWANA
from recurring in the future is fundamentally and wildlife that carry zoonotic pathogens. As a
predicated upon understanding the principal consequence, there is occurrence of ‘spill-over
causes of the infectious diseases. infections’ where pathogens are transmitted
from animals to human hosts. Indeed, the havoc
Malthusians would argue that the sporadic brought by COVID-19 not only underscores the
outburst of infectious diseases is Nature’s importance of biodiversity for human health and
inevitable way of responding to the problem that of the global economy, but also underlines
of the global population that has exceedingly the need for human beings to live within the ‘safe
outstripped food supplies. That is, these exemplify operating space of the biosphere’.
‘positive checks’ imposed by Nature to reduce
population to the optimal size through high Another interesting question to ask is: What is so
mortality. Their recommendation is that the global novel about COVID-19 that it is decimating human
community should take effective ‘preventive lives and livelihoods globally in an unprecedented
checks’ or engage in ‘moral restraint’ including by way? What differentiates it from previous diseases
delaying marriages to ensure that the population is that it is the first to become a global pandemic.
does not burgeon beyond Nature’s capacity to The argument is that the success in containing
produce food supplies. Another view is that of and localizing previous pandemics lay in their
the economics of biodiversity. The essence of the early detection, low pathogenesis, a reasonably
biodiversity argument, which is neatly espoused high level of immunity in the adult population
in the interim report of the Dasgupta Review2 , is and sustained susceptibility to antivirals3 . It
that the cause of these infectious diseases is the is argued that the epidemiological novelty of
loss of biodiversity. In particular, it pointed out that COVID-19, sudden and rapid spread, caught many
“the health of our planet plays an important role in governments around the world unprepared.
the emergence and spread of infectious diseases”.
Biodiversity loss caused by land-use changes such Like many other countries, Botswana imposed the
as deforestation, conversion of primary forest for standard containment measures entailing social
intensive agriculture and extractive industries distancing, closure of schools and workplaces,
such as logging, mining and plantations, etc., travel restrictions and bans, wearing of masks in
contributes to the emergence and spread of public places, frequent handwashing with soap
infectious diseases. These expansions in human or use of sanitizers, quarantines and lockdowns.
activity result in increasing contact among people Such measures are implemented to safeguard
human lives.
2
For details see the Dasgupta Review. This is an independent, 3
See for details Richard D. Smith, Marcus R. Keogh-Brown and Tony
global review on the Economics of Biodiversity and was Barnett, Estimating the Economic Impact of Pandemic Influenza:
commissioned by the HR Treasury. An Application of the Computable General Equilibrium Model to
6 the UK, Social Science & Medicine 73 (2011), 235-244.
Stanbic Bank Quarterly Economic Review
CORONAVIRUS AND PROSPECTS OF ECONOMIC
DEVELOPMENT OF BOTSWANA (continued)
However, these measures have detrimental Also emerging from year-on-year analysis is
impact on economic activity, government that economic activity decelerated from 4.2
revenue, create huge fiscal financing needs percent in the first quarter of 2019 to 2.6 percent
and lead to a widening of the government in the review period. On a quarter-on-quarter
budget deficit. Existing evidence suggests that assessment, the economy contracted by 0.9
lockdowns have differential effects on economic percent from P25,288.1 million during the fourth
sectors, employment, poverty, inequality, etc. quarter of 2019.
For instance, the pandemic could exacerbate
inequality in that the workers that are at high As fig.2 portrays, the pace of economic activity
risk of layoffs and furlough tend to be those that was heterogeneous. Most of the increase was
are least likely to work remotely (who tend to be the output of the water & electricity sector (13.4),
young), without a high school education, working followed by finance & business services (6.2) and
for non-standard contracts, employed in small the trade, hotels and restaurants (4.4)4 . Because
and micro enterprises and those at the bottom of it is a relatively small sector of the economy, the
the earnings distribution. water & electricity industry marginally contributed
to the economic growth. The remaining industries
Economy performed as expected in the first posted positive rates of growth of more than 2
quarter of 2020 percent. The exceptions were the agriculture and
mining, which contracted by 0.6 and 6.1 percent
The initial socio-economic conditions and policy respectively.
space crucially determine the extent to which
an economy is likely to be affected by a shock. The mining sector was the main driver of the
This said, it is fruitful to outline the state of the economic slowdown. Mining output fell by 6.1
economy in the first half of 2020. percent in Q1:2020 from P million registered
in the first quarter of 2019. The year-on-year
The latest national accounts’ data, ‘Gross analysis shows that this was in sharp contrast
Domestic Product: First Quarter of 2020’, to an increase of 3.4 percent in the first quarter
released by Statistics Botswana (StatsBot) in of 2019. Statistics Botswana’s report on mining
July 2020 showed that, at P25,071 million, the production released in July 2020 showed that
domestic economy increased by 2.6 percent in mining production decreased by 5.6 percent in
real terms in the first quarter of 2020 (2020:Q1) the first quarter of 2020 from the output of the
from P24,432 during the same period last year. same period in 2019.
4
The figures in parenthesis are changes in percentage terms.
7
Stanbic Bank Quarterly Economic Review
CORONAVIRUS AND PROSPECTS OF ECONOMIC
DEVELOPMENT OF BOTSWANA (continued)
The report further underscored that the quarter-
on-quarter analysis showed a decrease of 3.7
percent of the index of mining production from
the fourth quarter of 2019 to 84.6 observed during
the reference period.
Lastly, this was in spite of the strong rebound of
gold output due to a remarkable recovery. After
registering a decline for four consecutive quarters
up to 2019, gold output from the country’s only
gold producer, Mupane Gold, increased by 7.2
percent in Q1:2020. This was reportedly due
to higher-than-expected recoveries from the
ore. Fortuitously, this coincided with the period
Figure 1: Growth rate of the economy from 2012-2020
of higher gold prices in international markets.
However, on a quarter-on-quarter basis, gold in the first quarter of 2019. That the livestock
production also showed a decrease of 0.5 subsector contracted for three consecutive
percent. Also, Soda ash value added decreased quarters to the first quarter of 2020 clearly
by 11.4 percent. Indeed, there is a significant drop underlines that coronavirus outbreak is, at best,
in the global demand for diamonds as the world partially responsible for the sector’s disappointing
is highly affected by the outbreak of coronavirus performance.
pandemic. As luxury goods, diamonds are highly The trade, hotels and restaurants, transport and
susceptible to fluctuations due to the appetite of communications and social and personal services,
reliable customers. stalled economic activity, albeit marginally in the
first quarter of 2020. Growth of the trade, hotels and
Another driver of the slowdown of the economic restaurants, the transport and communications
activity was the agricultural sector. Instead of and the social and personal services decelerated
increasing as in the first quarter of 2019, the in the first quarter of 2020 to 4.4 from 5.6 percent,
sector contracted in the reference period. The to 2.6 from 5.7 percent and to 2.8 from 3.8 percent
livestock-subsector’s development chiefly respectively in the same quarter last year.
explains the contraction of agriculture. Livestock
output declined in the first quarter of 2020 by According StatsBot (2020), the transport and
0.2 percent year-on-year from P207.6 million communications’ slowdown is mainly due to the
8
Stanbic Bank Quarterly Economic Review
CORONAVIRUS AND PROSPECTS OF ECONOMIC
DEVELOPMENT OF BOTSWANA (continued)
travel restrictions. These resulted in a decline in reveals that economic activity decelerated by
value added of air transport and railway by 14.8 5.8 and 1.4 percentage points in the hotels &
and 16.4 percent in the first quarter of 2020. That restaurants and the retail sub-sector respectively.
the railway transport has been a serial growth
offender for five consecutive quarters clearly As evident in fig.2, the hotels and restaurants’
underscores that it will be folly to blame the sub-sector emerges as the major contributor of
subsector’s weakness on COVID-19. the slowdown of the trade, hotels and restaurants’
industry. The retail sub-sector also contributed,
albeit marginally. The year-on-year comparison
reveals that economic activity decelerated by
5.8 and 1.4 percentage points in the hotels &
restaurants and the retail sub-sector respectively.
On a quarter-on-quarter basis, the trade, hotels
& restaurants contracted by 0.3 percent from
P5,513.1 million in the fourth of 2019. The
wholesale (2.5) and hotels & restaurants (1.1)
emerged as contributors of the decrease in the
sector’s value added relative to the last quarter of
2019. The foregoing analysis undoubtedly points
to the conclusion that the coronavirus adversely
affected the hotels & restaurants and retail
sectors. Taking these subsectors as the tourism
sector implies that COVID-19 travel restrictions
are decimating Botswana’s tourism sector.
Having looked at the state of the economy in the
Source: Own Calculations with Statistics Botswana
first quarter of 2020 using GDP figures, it is also
fruitful to consider the health of the domestic
As evident in fig.2, the hotels and restaurants’ economy using alternative economic indicators.
sub-sector emerges as the major contributor of One such indicator of economic performance that
the slowdown of the trade, hotels and restaurants’ is not only widely understood, but also closely
industry. The retail sub-sector also contributed, related to GDP is inflation.
albeit marginally. The year-on-year comparison
9Stanbic Bank Quarterly Economic Review
CORONAVIRUS AND PROSPECTS OF ECONOMIC
DEVELOPMENT OF BOTSWANA (continued)
Inflation below the Bank of Botswana’s objective
range. Throughout the first half of 2020 the
national inflation rate was consistently below the
lower bound of BoB’s medium-term objective
range of 3-6 percent and never exceeded 2.5
percent. Also noticeable in fig. 3 is that inflation
rate marginally increased by 0.3 percentage
points in April from 2.2 percent registered in
March and fell by 1.5 percentage points in June
2020 from 2.4 percent recorded in May 2020. The
rise in inflation rate was largely due to the increase
in administered price of electricity whereas the
Source: Consumer price Index Statistics – June 2020, Statis-
fall in inflation rate was largely attributable to the
tics Botswana (2020)
fall in retail pump prices, which are administered,
for petrol and diesel by P1.63 and P1.40 per litre
respectively, which were effected on 13th June. Trade deficit is deteriorating
The low inflation environment contributed to Statistics Botswana’s International Merchandise
BoB’s Monetary Policy Committee, at its meeting Trade Statistics (IMTS) Monthly Digest – May
of the 18th June 2020, maintaining the bank rate 2020, released in July, is another high frequency
at 4.25 percent. data that not only elucidates the country’s
economic performance, but also provides the
Looking ahead, the position taken in this paper basis for measuring its global competitiveness.
endorses the prognosis of BoB of inflation rate Assessment of trade figures pointed to a
reverting to the lower bound of the objective deterioration of global competitiveness. Botswana
range in the second half of this year. BoB gave posted a trade deficit for five consecutive
sound reasons: (i) inflation expectations seem quarters to the first quarter of 2020 and for four
to be solidly anchored within the medium-term consecutive months to May 2020. At P4,197.80
objective range; (ii) world prices of commodities million, the trade deficit was 16.7 percent of GDP
are sizeably falling; and, (iii) domestic demand for the first quarter of 2020. On year-on-year
pressures continue to be relatively weak. comparison, the country’s trade deficit worsened
10Stanbic Bank Quarterly Economic Review
CORONAVIRUS AND PROSPECTS OF ECONOMIC
DEVELOPMENT OF BOTSWANA (continued)
from 8.5 percent of GDP for the corresponding underscores that deterioration of the trade
period in 2019. deficit is attributable to the bottlenecks in the
diamonds industry.
Even a cursory scrutiny of the composition of
exports immediately brings to the fore that A striking observation emerging from an analysis
diversification of exports remains elusive; of Botswana Financial Statistics (BFS), June
over eighty percent of Botswana’s exports are 2020, obtained from BoB website, is that there
diamonds. Also, worth noting is that diamond were no diamonds exported in the second quarter
exports fell from the first quarter of 2019 by 15.4 of 2020. Another observation that emerged was
percent to P11,439.9 million in the first quarter of that diamond exports overwhelmingly decreased
2020. On a quarter-on-quarter basis, diamond in the first half of 2020 by 61.4 percent from P29,
exports decreased by 4.6 percent from P11,989.7 607.2 million during the corresponding period in
million in the fourth quarter of 2019. The foregoing 2019.
Figure 4: International Merchandise Trade – January 2018 to May 2020 (P. Million)
Source: Statistics Botswana (2020)
11Stanbic Bank Quarterly Economic Review
CORONAVIRUS AND PROSPECTS OF ECONOMIC
DEVELOPMENT OF BOTSWANA (continued)
Foreign reserves cover is falling during the preparation of the first issue of this
Unsurprisingly, the movement of foreign Quarterly Economic Review in February 2020.
exchange reserves in the first half of 2020 This is as a result of the deterioration of the
echoes the developments in the trade balance. global economic prospects, falling commodity
As of the end of May 2020, Botswana’s foreign prices, and financial market turmoil occasioned
reserves, at P66,112.0 million, were a decrease by the outbreak of COVID-19 and containment
of 12.5 percent from their level in May 2019. This measures it elicited. This is because Botswana’s
level of foreign reserves is far below their level at economy remains crucially depended upon
the beginning of the Great Recession of 2008- global demand, particularly of diamond and, to
09. What this suggests is that Botswana has a some extent on tourism.
relatively weak position to deal with the current
shock. The latest BoB’s Business Expectations Survey
(BES), which collects information on the
A ‘bird wing’ global economic recovery domestic business community’s perceptions
The pandemic has continued to the second half about the prevailing state of the economy and
of this year, with not much hope of its abatement prospects, lends supports to the view that
and with residual effects shown by those that economic outlook has worsened. Worth noting
recovered from COVID-19 raising new concerns is that this survey was conducted during the
about the pandemic. These have quashed period when the country was on lockdown
expectations of a so-called V-shaped economic and the ongoing travel restrictions and social
rebound. Virtually all expert forecasting distancing requirements were in place as part
organizations in the private and public sectors of domestic measures aimed at containing the
anticipate global economic activity to contract spread of the COVID-19 pandemic. According
substantially in 2020 and to rebound partially to the BES, Most firms noted that COVID-19
in 2021. In fact, some anticipate the economic containment measures have negatively
recovery will markedly be, or even plateauing to, affected their business operations in the second
below the pre-crisis, i.e., 2019 levels possibly, in quarter of 2020. In particular, the trade, hotels
2023. & restaurants, transport & communications,
mining & quarrying, finance & business services
Deep economic downturn in 2020 and partial and the construction sectors emerged the most
rebound in 2021 affected. Moreover, the BES found that firms
The prospects of the domestic economy generally anticipated that it will take a year from
deteriorated much more than was envisaged June 2020 for their businesses to recover from
12Stanbic Bank Quarterly Economic Review
CORONAVIRUS AND PROSPECTS OF ECONOMIC
DEVELOPMENT OF BOTSWANA (continued)
the impact of COVID-19. Lastly, firms expected Similarly, MFED has revised the macroeconomic
the economy to contract by 0.2 percent in 2020 outlook underlying the 2020 Budget Speech. In
and inflation to average 3.2 percent and 3.4 its position paper of March 2020, MFED foresees
percent in 2020 and 2021, respectively. the domestic economy contracting by 1.7, 3.8 and
13.1 percent in the base, pessimistic and the worst
Another piece of evidence pointing to this is scenario respectively.
that the economic outlook has deteriorated so
much that a deep growth outturn is anticipated Likewise, IMF has revised the economic outlook;
is that the Moody’s Investors Service (Moody’s) it envisages economic activity contracting by 9.6
changed the outlook in 29 May 2020 from stable percent in 2020 and partially rebounding in 2021
to negative on the Government of Botswana’s by 8.6 percent in the baseline scenario. Moreover,
issuer ratings and affirmation of the A2 long- after decreasing by 11.2 percent in 2020, real
term local and foreign currency issuer ratings. GDP per capita growth is anticipated to recover
Due to the sharp slowdown in domestic demand by 6.7 percent in 2021. This signifies the extent
and the disruptive impact of the coronavirus on to which COVID-19 is likely to retard economic
the mining sector, particularly on the demand for development.
diamonds and the decline in the tourism sector
hit by the travel restrictions, Moody’s expects For the purposes of the present paper, projections
real GDP to contract by around 7 percent in were produced. Box 1 contains the assumptions
2020. It also expects the growth downturn to underlying the macroeconomic projections.
be comparatively deeper than that experienced Projections show that the domestic economy will
by most sovereigns in Sub-Saharan Africa. The contract by 11.7 and 17.1 percent in the baseline
contrast highlights the risk that domestic firms scenario and in the worst scenario respectively.
are underestimating the extent of the economic
meltdown that the coronavirus will inflict on the
economy in the long-term.
13Stanbic Bank Quarterly Economic Review
CORONAVIRUS AND PROSPECTS OF ECONOMIC
DEVELOPMENT OF BOTSWANA (continued)
Box 1: Assumptions underlying the Present paper’s Macroeconomic Outlook
Mining Sector - the World Trade Organisation, world trade is expected to fall between 13 percent
and 32 percent. The figure of 13 percent is based, however, on the assumption that the COVID-19
restrictions and lockdowns are short lived while the 32 percent assumes that the coronavirus
policies are more likely to last for more than two quarters. As per the current situation, it
is reasonable to use the 32% which at the time of estimation seemed more like a worst-case
scenario. In Botswana, the diamond mining sector accounts for 80% of total exports hence using
the WTO estimates the mining revenue is expected to fall by 26% in 2020.
Agriculture -this likely to benefit from the pandemic as the local farmers are forced to increase
production. Due to COVID-19 most countries including South Africa, major importer and exporter
of agricultural products and services to Botswana, have put in place restrictions on agricultural
products to ensure self-sufficiency. Therefore, we anticipate this to have a positive effect on the
Botswana’s agriculture sector. However, the reduction in import tax is likely to offset this positive
effect. We foresee the sector growing by 1.5 percent as the MFED projected. Owing to lack of
concrete reasons to expect these sectors to do better than or worse than these under the current
situation, the MFED’s May 2020 baseline projection of 1.5 percent suffices as the best guest
estimate.
Trade, hotels and restaurants – the view taken in this paper is that the sector’s prospects are
much worse than forecasted by the MFED in March 2020 mainly on account of the continuation of
coronavirus pandemic to the second half of this year and implementation of air travel restrictions.
Accordingly, the expectation is that Botswana’s tourism sector will continue to be profoundly
decimated by coronavirus-related air travel restrictions. The paper’s baseline scenario foresees
the trade, hotels and restaurants shrinking by 40 percent. In addition to the snap study conducted
by LEA that found that the tourism sector suffered a 72 percent revenue loss in March, this is based
on the World Travel Tourism Council finding that the travel and tourism industry contributes about
60 percent of the trade, hotels and restaurants revenue. Hence, the international travel restrictions
weigh will heavily on this sector. Whilst about 84 percent of tourist arrivals in Botswana are from
Africa and the remaining 16 percent are from countries such as United States, Germany, and the
UK. However, revenue derived from overseas far outweighs those from the continent due to the
high value – low impact tourism strategy. Also, the six months State of Emergency implemented
to curb the spread of COVID-19 is expected to have far reaching implications on the tourism sector.
Other economic sectors are expected to growth as per MFED’s projections.
14Stanbic Bank Quarterly Economic Review
15Stanbic Bank Quarterly Economic Review
BOOSTING DOMESTIC
TOURISM: PRESENT
AND POST COVID-19
Dr. L. Sekwati and Prof. J. Pansiri
University of Botswana
Introduction health facilities and introduced measures such as
The coronavirus (COVID-19) has infected targeted testing and tracing, lockdown measures,
21,989,366 people and caused 775,893 deaths including closure of international borders. These
worldwide5 . The spread of the virus is showing measures, as can be expected, have adversely
no signs of abating. The Americas remain the impacted and continue to negatively affect
epicentre of the virus with 11,758,006 followed many industries, resulting in demand and supply
by Europe with 3,841,452 confirmed cases, and shocks.
South East Asia with 3,233,831 confirmed cases.
Africa is reported to have 966,352 confirmed International tourism is one of the worst affected
cases, with South Africa accounting for over half sectors. While some countries have slowly started
of the confirmed cases. Botswana is reported to to ease travel restrictions, most international
have 1308 confirmed cases and 3 deaths. destinations were entirely closed in the first and
second quarter of 2020. According to the United
While little is known about the many aspects of Nations World Trade Organization (UNWTO),
the virus is known, it is generally accepted that by April 2020, all international destinations
the virus is easily transmittable. Many countries had introduced travel restrictions. The UNWTO
(including Botswana) have mandated the use estimates that between January and April 2020,
of sanitary practices such as hand washing and international tourist arrivals declined by 44
sanitizing, use of personal protective equipment, percent, translating into a loss of about US$195
social distancing, and isolation. Furthermore, billion in international tourism receipts6 . At the
countries have embarked on upgrades of public regional level, Asia and the Pacific were the worst
https://covid19.who.int/ accessed August 20th 2020
5 6
https://www.unwto.org/ accessed July 24th 2020
16Stanbic Bank Quarterly Economic Review
BOOSTING DOMESTIC TOURISM: PRESENT
AND POST COVID-19
hit between January and April, with arrivals down year. Visitors from South Africa accounted for 35
51 percent in that period. Europe recorded the percent while those from Zimbabwe represented
second largest fall, with a 44 percent drop for the 29.5 percent of total visitors during the year
same period, followed by the Middle East with a 40 (Statistics Botswana, 2020). Tourists from the
percent drop. The Americas and Africa recorded a top ten overseas countries accounted for 12.6
drop of 36 percent and 35 percent respectively. percent of total tourists during the year.
Figure 1: International Arrivals 2005-2018 7
Depending on whether borders reopen in July,
September, or December, the UNWTO estimates
a loss of 850 million to 1.1 billion international
tourist arrivals, US$910 million to US$1.1 trillion
in export revenues and 100-200 million jobs for
the sector worldwide.
This article reviews the impact of COVID-19 on
Botswana’s tourism. Importantly, it looks at ways
in which the sector can boost domestic demand in
the short to medium-term, not only to mitigate the Table 1: Top Ten Arrivals: SADC & Overseas (%)
impact of COVID-19, but also to expand the base
for future growth. While data on domestic demand
for tourism is limited, it is true that the domestic
tourism market remains largely untapped, with
operators focusing on international tourism.
Impact of Covid-19 on Tourism
International tourist arrivals in Botswana have
averaged over 2 million year-on-year, for the past 10
years (see Figure 1). In 2018, the country received
a total of 1,830,853 visitors, with 90.4 percent
attributable to tourists, a 3.5 percent increase in
the number of tourists compared to the previous
7
Figure 1 & 2 and Table 1 are based on Statistics Botswana (2020)
17Stanbic Bank Quarterly Economic Review
BOOSTING DOMESTIC TOURISM: PRESENT
AND POST COVID-19 continued
Table 1 shows the distribution of tourist arrivals tourism has grown from 6.8 percent in 1999,
from the top ten SADC countries and top ten to 13.4 percent in 2018, representing an annual
overseas countries during the year 2018. South average growth rate of 4.42 percent.
Africa, followed by Zimbabwe dominated arrivals
from the SADC region, while the United States,
followed by Germany and the United Kingdom,
dominated arrivals from overseas. Tourists who
came for ‘Holiday’ during 2018, accounted for
22.5 percent of total tourists, while those who
came for ‘Visiting Friends & Relatives’ (VFR) and
‘Business’ represented 27.0 percent and 23.3
percent respectively (see Figure 2).
Figure 2: Type of Visitor by Purpose (2018)
Table 2: Contribution of Travel & Tourism to GDP
The government of Botswana imposed travel
restrictions in April 2020. By the first week of
August 2020, the restrictions were still in place.
These restrictions have included denying entry into
Botswana by persons from high risk countries as
Figure 2: Type of Visitor by Purpose (2018)
defined by the World Health Organization (WHO)9
. These countries include all the top international
tourists generating countries in Table 1 with the
In terms of value, the contribution of travel and
exception of Australia and Canada.
tourism to the Gross Domestic Product (GDP)
has grown from US$ 0.4 billion in 1999, to US$
While data on the impact of Covid-19 on
2.5 billion in 2018, representing an annual average
international tourism arrivals is limited at this
growth rate of 12.5 percent (see Table 2)8 . As a
time, it is not difficult to imagine the impact travel
percentage of GDP, the contribution of travel and
https://knoema.com accessed July 24th 2020
8 9
https://www.cdc.gov/coronavirus/2019-ncov/travelers/map-
and-travel-notices.html accessed 2nd August 2020
18Stanbic Bank Quarterly Economic Review
BOOSTING DOMESTIC TOURISM: PRESENT
AND POST COVID-19 continued
restrictions have so far had, and will continue Covid-19 on the sector in the short and medium
to have, on tourism arrivals in the short and term. Secondly, to expand sources of growth for
medium term, and consequently on the output the sector in long term. While lacking in detail,
and employment of the sector, as the spread and clear strategies, the economic recovery plan
of Covid-19 continues relentlessly worldwide, for the country post Covid-19 acknowledges the
and indeed in the top ten overseas and SADC strategic role that domestic tourism can play in
countries that account for the largest number of resuscitating the sector.10
international arrivals.
Boosting Domestic Demand
Besides international arrivals, restrictions Domestic tourism comprises activities of a
on travel and congregation of people due to resident visitor within the country, either as part
Covid-19 regulations have had a serious impact of a domestic tourism trip or part of an outbound
on conferencing activities. Many conferences, tourism trip, including the activities of government
workshops, and meetings have had to be cancelled and its bureaucracy11 . While domestic tourism
or postponed as a result of Covid-19 regulations. statistics are limited, existing data shows that
The restaurant business has not been spared, 1,166,141 overnight domestic trips were recorded
with restrictions on congregation of people during in 2010 in Botswana, of which 84.8 percent stayed
the lockdown period. with friends/family12. In the same year, domestic
tourists spent a total of BWP955 million, with 81
While travel restrictions have been slightly eased percent spent by overnight tourists. A further
in recent weeks (though international travellers BWP36 million was spent by domestic tourists as
are required to undergo a mandatory 14-day part of an outbound trip during the same year. In
quarantine), restrictions on arrivals from high risk total, domestic tourism spending was estimated
countries remain in place. This scenario, coupled at BWP991 million in 2010.
with the global uncertainty due to Covid-19 and
indeed the low appetite for international travel While real statistics are not available, the World
while the virus continues to spread, means it will Travel & Tourism Council (WTTC) projects
take considerable amount of investment to build domestic travel spending in Botswana to rise to an
confidence and increase international inbound estimated BWP6,278.7 million by the year 202513
tourism to Botswana. In the current business . Obviously, these estimates were made before
climate, Botswana should look into boosting the Covid-19 pandemic. However, they reveal the
domestic tourism. Firstly, to mitigate the effects of potential value of domestic tourism. Economic
10
Republic of Botswana (2020), 2020/21-2022/23 Economic Recovery and Transformation Plan. 11World Tourism Organization (2010).
International Recommendations for Tourism Statistics 2008. New York: Department of Economic and Social Affairs, Statistics Division.
12
Department of Tourism. (2010). Tourism Statistics 2006-2009. Gaborone: Department of Tourism. 13World Travel & Tourism Council.
(2015). Travel & Tourism: Economic Impact 2015 Botswana. London: World Travel & Tourism Council. 19Stanbic Bank Quarterly Economic Review
BOOSTING DOMESTIC TOURISM: PRESENT
AND POST COVID-19 continued
gains can thus be expected from policies designed identification and/or development of regional/
to stimulate growth of domestic tourism. The local specific tourism products that have potential
strategies that will be adopted going forward, to attract domestic tourists across the country
will determine how close Botswana’s domestic with a view to spreading tourism activities across
tourism growth and financial contribution will be the country. This will facilitate economic recovery
to the projected scenario (or even surpass the across the country. Botswana’s big dams such
projections) in the next five years. as Molatedi, Letsibogo, Shashe and Dikgatlhong
Dams would enhance localised and across district
The ongoing review of the tourism policy (1990) is domestic tourism. Such developments should
an opportunity for government to take deliberate be accompanied by well-designed water-based
steps to develop domestic tourism in the long tourism activities such as Sport Fishing, Boating,
term, with a view to increasing domestic tourism boat cruising and any other water-based activities
volume and tourism expenditure. It must also that could be better promoted to the local market.
aim to develop a culture of tourism among locals One day tours and recreation experience can
and get them interested in appreciating the local further be developed around these products.
culture (heritage sites) and flora and fauna. The
policy must also ensure that barriers to entry by Marketing and Pricing Strategies
locals in this industry are eliminated. Botswana’s nature-based resources, culture and
It is true that currently, high value activities in this heritage sites which are already developed should
sector are dominated by foreigners, with most be marketed and made accessible to the local
locals only limited to low value activities. market, particularly nature-based resources,
which have for many years been accessible mainly
In the short and medium term, as the country to international tourists. The challenge with these
looks to resuscitate the sector, it is critical to focus products has always been the pricing, embedded
on developing products that appeal to locals; in the ‘low volume high value policy’. With this
tourism awareness campaigns; and funding. pricing policy, Batswana do not enjoy the price
benefit of being citizens in most tourist areas. The
Product Development closest incentive that exists is for Batswana to pay
The country’s destination management the SADC rate in most destinations and lodging
organisation, the Botswana Tourism Organisation facilities. As result, the domestic market has been
(BTO), in partnership with other tourism left out14 . A deliberate pricing system designed to
stakeholders, should embark on a county wide encourage locals to visit destinations in Botswana
14
Morupisi, P., & Mokgalo, L. (2017). Domestic tourism challenges
in Botswana: A stakeholders’ perspective. Cogent Social Sciences,
3(1), 1298171. doi: 10.1080/23311886.2017.1298171
20Stanbic Bank Quarterly Economic Review
BOOSTING DOMESTIC TOURISM: PRESENT
AND POST COVID-19 continued
should be developed, differentiating domestic businesses are expected to benefit from this
and international tourism prices. Furthermore, scheme, as the sector looks to recover from the
tourism marketing targeting the domestic effects of the Covid-19 pandemic. However, like
market is essential to increase the numbers of many economic empowerment programmes
local tourists and domestic tourism income. This and initiatives introduced by government in the
is where the creativity of the BTO is essential, to past (e.g. CEDA, Youth Development Fund etc.),
produce marketing campaigns that will stimulate accessibility, especially by Small and Medium
domestic tourism, emphasising the uniqueness Enterprises (SMEs) is of primary concern. It is
of each local destination. thus critical to ensure that SMEs benefit from the
Scheme.
Funding Opportunities
The government has recently announced
a government loan Guarantee Scheme for
businesses affected by Covid-1915 . Tourism
15
https://www.hatab.bw/images/downloads/COVID-19/Botswana-
Government-COVID19-Loan-Guarantee-Scheme-Ministry-Finance-
Economic-Development.pdf accessed August 1st 2020
21Stanbic Bank Quarterly Economic Review 22
Stanbic Bank Quarterly Economic Review POTENTIAL IMPACT OF COVID-19 ON THE ECONOMY BOTSWANA Dr. J.B. Tlhalefang and Dr. O. Mothobi University of Botswana There is concern pertaining to the effects that This paper presents the potential impact on COVID-19 may have on the economic, social, health, Botswana’s economic development of COVID-19. financial and environmental landscapes. In fact, These were obtained by undertaking simulations arguments abound that the scale of the impact of COVID-19 using a dynamic computable general is unprecedented. Moreover, existing studies equilibrium (CGE) for economy, energy and suggest that it may take more than a decade for environment interactions17 for Botswana. The the world to societally and economically recover, CGE model approach is extensively applied to and that it may significantly thwart the progress quantify the impact of pandemics. It was used, of sustainable development Agenda 2030 as well for instance: to simulate the impact of COVID-19 as of other development frameworks. Beyond on the global economy by Maryla Maliszewska these, extant evidence highlights that recent and colleagues in 2020; estimate the economic infectious disease outbreaks have had severe impact of Ebola epidemic in West Africa by Marcio deleterious socio-economic consequences, with Cruz and associates in 2014; and, to evaluate the the behavioural effects or aversion behaviour economic impact ofpandemic influenza (H1N1) accounting for as much as 90 percent of a in United kingdom in 2011. The attractiveness pandemic’s total economic impact16 . As a global of this modelling approach lies in the fact that pandemic, COVID-19 is undoubtedly poised to its analytical property permits the systematic have much more serious social and economic analysis of factors diffusing the effects of a consequences, especially on developing pandemic on the economy and on each sector on countries, as well as a devastating human toil. both the supply and demand sides. 16 For details see Marcio Cruz, David K. Evans, Francisco, Hans Lofgren, Maryla Maliszewska and Mead Over, Estimating the Economic Impact of the Ebola Epidemic: Evidence from Computable General Equilibrium Models, Mimeo. 17 for the impact of COVID-19 on other microeconomic indicators and the model, contact the lead author, Dr. J.B. Tlhalefang. 23
Stanbic Bank Quarterly Economic Review
POTENTIAL IMPACT OF COVID-19 ON
THE ECONOMY BOTSWANA
It is suited for use when the shock is so enormous Also contributing considerably to explaining the
that it changes relative prices and provides a large economic costs is private consumption
counterfactual that discriminates amongst the and gross investment by 30.6 percent and 22.7
impact of other shocks. percent respectively. The increase in government
consumption by 2.7 percent, albeit moderate,
The model was parameterized to the social minimized the deleterious effects.
accounting matrix database for Botswana with a
base year of 2011. It was then solved forward in
annual steps to 2023 to trace the development
of Botswana’s economy with and without the
COVID-19 pandemic. The difference between
the performances of the economy with and
without COVID-19 are taken solely as effects of
the pandemic. The approach taken was to model
COVID-19 as a negative environmental externality.
In fact, COVID-19 shocks were communicated to
the model economy as reductions in growth rates
of sectoral value added of key economic sectors.
Table 1 displays the possible implications of the
Table 1: Macroeconomic Impact of COVID- 19
epidemic on selected macroeconomic indicators.
Overall, the simulations suggest that the Within the CGE analysis context, real aggregate
economic costs of COVID-19 are quite large for absorption is used as a comprehensive indicator
Botswana. The commonly used measure of the of welfare change18 , where a rise in this measure
economic health is GDP. A decline in this indicator denotes welfare improvement. This is the total
signifies deterioration in economic performance. basket of goods and services used for private
As apparent in table 1, the quantitative estimates and public final consumption and investment
indicate that GDP at market will fall by 23.1 percent within a given period. In table 1, the changes in
from the pre-COVID-19’s GDP of P135,386.5 total absorption are highly correlated with the
reported real GDP deviations from the baseline.
million in the baseline scenario. The loss in GDP In percentage change terms, the welfare loss,
caused by the pandemic is largely attributable measured by the total absorption and the reported
to a sharp drop in exports of about 30 percent. GDP loss, is equivalent.
18
See for details Ardnt et al, 1999; p.8, in Marketing Margins and Agricultural Technology in Mozambique, Paper Presented at the Second
Annual Conference on Global Economic Analysis June 20-22, 1999; Willenbockel et al (2018), in ‘Dynamic Computable General Equilibrium
Simulations in Support of Quantitative Foresight Modelling to Inform the CGIAR Research Portfolio
24 Linking the IMPACT and GLOBE Models’, IFPRI Discussion Paper 01738Stanbic Bank Quarterly Economic Review
POTENTIAL IMPACT OF COVID-19 ON THE
ECONOMY BOTSWANA (Continued)
There are good reasons to expect the epidemic For the same reason, the demand for professional
or a large shock, to have severe dislocation and technical employees in the business services
effects on the social and economic sectors. and social services also considerably declined.
Moreover, sector-specific impact is a critical These two sectors are also the intensive-users of
ingredient in decision making and in the design of professional and technical employees.
compensation packages. Thus, they are equally
demanded by decision and policy makers. ‘Dynamic Computable General Equilibrium
Simulations in Support of Quantitative Foresight
Focusing on employment, the simulation results Modelling to Inform the CGIAR Research Portfolio
portrayed in fig.5 indicate that employment will Linking the IMPACT and GLOBE Models’, IFPRI
substantially fall. The main contributory factor to Discussion Paper 01738
retrenchment is the change in factor productivity.
As evident in fig.5, the retrenchment is highly
uneven. Shedding of labour is highly concentrated
on the professional and technical employees. This
overwhelmingly falls by 17.1 percent. The unskilled
labour, at 7.2 percent, emerges as the second most
affected whilst administrative and managerial
are the least affected. These findings can be
attributed to changes in both productivity and
substitutability of inputs. The loss in employment
by professional and technical employees lies in
developments in the government sector, which
is the main employer of this factor. In 2011,
government employed slightly over 50 percent of
professional and technical labour. Coupled with
the relatively large increase in factor productivity
in the government sector, the relatively large fall
Figure 5: COVID-19’s impact on employment
in the government rental price of capital induced Source: Model Simulations
a large fall in the demand for professional and
technical employees in the government sector.
25Stanbic Bank Quarterly Economic Review
POTENTIAL IMPACT OF COVID-19 ON THE
ECONOMY BOTSWANA (Continued)
Government has good reason to be interested in
the likely distributional implications of COVID-19.
Not only is income inequality quite high by
international standards, the disparity in the
distribution of income has also been worsening
over the years. Inferences about the repercussions
of the epidemic on the size distribution of income
can be drawn by exploring the variations in real
income for the poorest household group. Existing
empirical evidence shows that the rural household
group is the poorest; it derives livelihoods directly
from subsistence agriculture. Figure 6 reveals the
potential impact on size distribution of income. Figure 6: COVID-19’s impact on Household Income
Source: Model simulations
With respect to households, the insights show
It is conspicuously apparent that all households
that COVID-19 would lead to a large household
would lose their income, albeit the income
welfare loss. The household welfare loss, as
loss is disproportionately distributed across
measured by real household consumption, would
the households. Evidently, the income loss is
be equivalent to 31 percent of the pre-pandemic
relatively large for households urban villages, with
household consumption level. Especially worth
their income loss amounting to 35.2 percent of
noting is that the consequence on reduction
the benchmark income of P30,116.85 million. The
welfare is more severe than indicated by GDP
impact on the distrubution of income of the virus
figures. This exemplifies the consequential effect
is consistent across the two scenarios.
of severe efficiency losses that is a significant
repercussion of the epidemic-related trade
Throughout these scenarios, rural households
interruptions.
consistently observe a proportionately lower
loss of their income than those households
groups in cities/towns and urban areas. The
main contributing factor is the difference in
sources of income amongst the household
26Stanbic Bank Quarterly Economic Review
POTENTIAL IMPACT OF COVID-19 ON THE
ECONOMY BOTSWANA (Continued)
groups. Households in rural areas generally earn results show a substantial fall in emissions
a relatively large share of their income from self- of carbon dioxide emanating from coal use,
employment and income transfers, as opposed primarily in the mining sector, and use of diesel
to households in cities and urban villages who in diesel-fired power station. The reduction in
rely more on salary and capital income, which environmental pollution from coal use ranges
is usually double that in rural areas. As the from a low of 2 percent (from 16,860.84 tonnes
preceding analysis of factor results show, the of CO2) in the government sector to a high of 34.7
fall in income to capital and professional and percent (from 21,798.64 tonnes of CO2) in the
technical employees is relatively large. These mining sector. Also, emission of CO2 from diesel-
are main sources of income to cities/towns and fired power station drops down by 43.2 percent
urban households. For instance, it emerges from from 40464.7 tonnes of CO2. To the extent that
the SAM for the analysis that 64 percent and 50 the virus curtails emissions of carbon dioxide,
percent of the cities/towns households’ income which is the main contributor to the greenhouses
and urban households’ income was profits effects or global warming, it has a positive effect
respectively. Conversely, 39 percent of the rural on the environment. Considering the human
households’ income in 2011 was transfers from and economic costs involved, this is certainly an
the government. Lastly, simulation results lend unjustifiable way for accomplishing the objective
support to the view that COVID-19 will contribute of reduction of GHGs emissions.
to improvement of environmental quality. The
27Stanbic Bank Quarterly Economic Review 28
Stanbic Bank Quarterly Economic Review
COVID-19 AND
ACCELERATION OF
DIGITALIZATION
Mrs M. Kolobe and Dr. L. Sekwati
University of Botswana
Introduction uneven in other sectors. Though data is limited,
There is no question that the spread of Covid-19 anecdotal evidence suggests accelerated
and subsequent lockdowns have resulted adoption and utilization of digital platforms
in massive disruptions in the conduct of in other sectors of the economy during the
business. The pandemic has proven particularly lockdown period including small businesses. This
devastating to businesses selling primarily is a positive development given the benefits of
through traditional distribution channels. digital technologies and indeed e-commerce. This
However, the pandemic has also brought to the paper explores ways in which this positive trend
fore opportunities that businesses and indeed can be sustained to the benefit of businesses,
customers can capitalize on, not only during the customers, and the economy at large.
period of lockdown, but post the pandemic. Albeit
out of necessity, disruptions in business activity Benefits and Opportunities of Digitalization
perpetuated by the spread of Covid-19 revealed The past few years have seen growing utilization
increasing willingness to utilize digital platforms of new technologies, including digital platforms,
in the conduct of business by businesses and to improve business efficiency and customer
customers. experience. Digitalization involves restructuring
social and economic interaction around digital
Prior to the lockdown period, the adoption and communication infrastructure19 . It has many
utilization of digital technologies was prominent benefits to businesses and customers. The most
in the banking sector, but somewhat low and obvious benefit, particularly in the context of the
19
See Bloomberg, J. (2018, April 29).
29Stanbic Bank Quarterly Economic Review
COVID-19 AND ACCELERATION OF
DIGITALIZATION
Covid-19 pandemic, is that it allows businesses to without moving from their workplace or home. By
get around constraints imposed by regulation of eliminating the middleman, it saves money for the
movement and physical contact during lockdown. customer. Finally, it allows customers to search
for product information, compare prices and
Digital technologies also reduce marketing, benefits and evaluate the value of the products
labour, and operational costs since most of the before committing to a purchase.
work is done online. In addition, replacing paper
and manual processes with software allows Covid-19 and Digitalization in Botswana
businesses to automatically collect data that While the Covid-19 pandemic has brought new
can be used to better understand performance, and unique challenges to business, there is some
risk, and cost drivers. Furthermore, real-time evidence it has accelerated the adoption and use
reports allow managers to address problems of digital platforms in the conduct of business,
before they become critical. They also save though to a large extent out of necessity. In a
time and improve operational efficiency. For, matter of weeks, businesses, especially in the
example, businesses are able to respond retail sector, had developed online channels of
immediately or just in time to customer queries conducting business. For example, retail giant
through online processes. For small and medium Choppies started with taking orders through
enterprises (SMEs), e-commerce provides an email and WhatsApp to facilitate shopping, and
opportunity to break free of the limitation that subsequently introduced the Choppies eBasket.
physical outlets impose, enabling them to sell Popular fast food outlets such as Nando’s and
anywhere. E-commerce requires automation of Debonairs Pizza experienced a surge in the
the purchasing process i.e. check-out, invoicing, number of downloads on Play Store during this
and payment processing, thus reducing the need period.20 A number of small businesses took to
for additional staff to manage these aspects of social media platforms (Facebook and Instagram)
the business. E-commerce also offers relatively to reach out to customers and offer home delivery.
low-cost engagement with existing customers
and promoting the business to potential new Sustaining Momentum beyond Covid-19
customers. This means SMEs can save on costs Can businesses and consumers maintain the
of traditional advertising. appetite for the adoption and use of digital
technologies in the conduct of business post
For the customer, e-commerce enables them Covid-19? A number of policy issues need to be
to choose a product or service from any vendor addressed to ensure the country maximizes on
anywhere. In addition, they can buy any product the demand for digitalization.
20
https://playgoogle.com/apps?hl=en
30Stanbic Bank Quarterly Economic Review
COVID-19 AND ACCELERATION OF
DIGITALIZATION (Continued)
First, there is a need to quicken the pace of The price of internet connectivity remains a
physical connectivity of fiber optic networks. concern and an obvious impediment to the conduct
When delivering the 2020 national budget of business online. This fact is acknowledged in
speech, the Minister of Finance and Economic the National Broadband Strategy Paper22 . The
Development, Honorable Dr Thapelo Matsheka strategy acknowledges that prices for mobile
noted that as part of the efforts to expand access and fixed broadband services in Botswana are
to the broadband internet services, Government, high compared to other African, European and
through BOFINET, has started rolling out Fibre- Middle East countries. Table 1 compares prepaid
To-The-Business and Fibre-To-The-Home in broadband prices in Botswana and selected
Gaborone, which will be extended to other parts Southern African Development Community
of Botswana. This development comes at an (SADC) countries in 2019 . The data suggests
23
opportune time and will hopefully improve access Botswana is in the top half of countries with
to digital platforms. The Honorable Minister also the highest broadband prices in the region. The
noted that Government intends to capitalize on national broadband strategy paper acknowledges
the demand for digital skills by focusing on the that prices need to decrease to affordable levels.
implementation of e-services across its delivery While the solution is not straightforward, the
models. He also noted that the Government answer lies somewhere between the development
expects to complete the development of and provision of ICT infrastructure, pricing policies
a national e-commerce strategy with the of internet providers, and protection of consumers
assistance of the United Nations Conference on by the regulator, Botswana Communications
Trade and Development (UNCTAD) during the Regulatory Authority (BOCRA).
2020/21 financial year. The strategy is intended
to promote the diffusion and use of e-commerce
in the commercial and public spheres. In terms
of budget allocations, the Honorable Minister
indicated that ICT projects will be allocated P823
million of the P12.03 billion total development
budget for 2020/21 21.
21
Caution should be applied in interpreting these budget allocations given the expected adverse impact of COVID-19 on government
revenues. It is possible that Government will re-allocate some of the resources to address the challenges brought about the COVID-19
pandemic. 22Republic of Botswanan (2018), National Broadband Strategy, Ministry of Transport and Communications. 23The data is sourced 31
from https://researchictafrica.net/ramp_indices_portal/. Accessed August 24th 2020.You can also read
