45246 Enterprise Surveys Country Profile Botswana 2006 PUT COUNTRY MAP HERE Region:Africa Income Group:Upper middle income Population(2006): 1.8 milliones GNI per capita (2006): US$5590 http://www.EnterpriseSurveys.org World Bank, 1818 H Street, N.W. Washington DC, 20433 Tel. (202) 458-4808 Fax (202) 522-2029 Email: rru@worldbank.org Introduction 3 Snapshot 4 Infrastructure 5 Finance 6 Labor Force 7 Corruption & Regulatory Burden 8 Courts & Crime 9 Innovations & Technology 10 Trade 11 Summary of Enterprise Survey Indicators 12 Introduction Enterprise Surveys The Enterprise Surveys focus on the many factors that shape the decisions of firms to invest. These factors can be accommodating or constraining and play an important role in whether a country will prosper or not. An accommodating business environment is one that encourages firms to operate efficiently. Such conditions strengthen incentives for firms to innovate and to increase productivity--key factors for sustainable development. A more productive private sector, in turn, expands employment and contributes taxes necessary for public investment in health, education, and other services. In contrast, a poor business environment increases the obstacles to conducting business activities and decreases a country's prospects for reaching its potential in terms of employment, production, and welfare. Enterprise Surveys are conducted by the World Bank and its partners across all geographic regions and cover small, medium, and large companies. The surveys are applied to a representative sample of firms in the non-agricultural economy. The sample is consistently defined in all countries and includes the entire manufacturing sector, the services sector, and the transportation and construction sectors. Public utilities, government services, health care, and financial services sectors are not included in the sample. Enterprise Surveys collect a wide array of qualitative and quantitative information through face-to-face interviews with firm managers and owners regarding the business environment in their countries and the productivity of their firms. The topics covered in Enterprise Surveys include the obstacles to doing business, infrastructure, finance, labor, corruption and regulation, law and order, innovation and technology, trade, and firm productivity. The qualitative and quantitative data collected through the surveys connect a country's business environment characteristics with firm productivity and performance. The Enterprise Survey database is intended to be useful for both policymakers and researchers. The surveys are to be repeated over time to track changes and benchmark the effects of reforms on firm performance. Country Profiles The Country Profiles produced by the Enterprise Analysis Unit (FPDEA) of the World Bank Group provide an overview of key business environment indicators in each country, benchmarking against their respective geographic region and group of countries with similar incomes. Breakdowns by firm size are presented in the Appendix of the document along with all statistics used to make the graphs. The same topics are covered for all countries with slight variations in indicators (subject to data availability). This format allows cross country comparisons. All indicators are based on the responses of firms. To learn more about the firms sampled for this country profile (tabulations for these and other indicators by industry, exports, and type of ownership) or to obtain profiles of other countries, please visit the web page http://www.enterprisesurveys.org. Currently available at the Enterprise Survey website are survey results on the business environment in over 97 countries, based on data from more than 61,000 firms. http://www.enterprisesurveys.org Country Profile: BOTSWANA 3 Botswana The country profile for Botswana is based on data from the Enterprise Surveys conducted by the World Bank in 2006. The benchmarks include the averages for the group of countries in Africa and the Botswana income group. Below is a snapshot of the constraints to investment and doing business as perceived by firms. The first graph presents the top 10 constraints as identified by firms in Botswana benchmarked against the regional average. The second graph shows the top 3 constraints broken down by large medium, and small firms in Botswana. Snapshot of the Business Environment in Botswana Percentage of Firms Identifying the Problem as the Main Obstacle 30 Africa 25 20 15 10 5 0 Access to Anti- Crime, Theft Skills and Access to Land Corruption Tax Rates Business Transportation Electricity Financing Competitive or and Disorder Education of Licensing and (Availability and Informal Available Operating Cost) Practices Workers Permits AMÉRICA LATINA Y EL CARIBE 2006 Percentage of Firms Identifying the Problem as the Main Obstacle Small firms Medium firms Large firms 35 (1-19 employees) (20-99 employees) (100 employees or more) 30 25 20 15 10 5 0 Access to Anti- Crime, Theft Skills and Access to Crime, Theft Skills and Business Anti- Financing Competitive and Disorder Education of Financing and Disorder Education of Licensing and Competitive (Availability or Informal Available (Availability Available Operating or Informal and Cost) Practices Workers and Cost) Workers Permits Practices http://www.enterprisesurveys.org Enterprise Surveys: BOTSWANA 4 Infrastructure Infrastructure as a Constraint 60 A strong infrastructure enhances the 50 competitiveness of an economy and 40 improves the quality of life of the Firms population. Good infrastructure connects of 30 firms to their customers and suppliers, and enables the use of modern production Percent20 technologies. 10 Conversely, deficiencies in infrastructure 0 create barriers to productive opportunities % of Firms Identifying % of Firms Identifying Electricity and increase costs for all firms, from micro- Transportation as a Major as a Major Constraint enterprises to large multinational Constraint corporations. Botswana Africa Upper middle income Enterprise Surveys capture the dual challenge of providing strong infrastructure: Quality of Infrastructure the physical construction of roads, power 14 8 lines, water systems, etc., and the development of institutions that effectively 12 7 provide and maintain public services. Month 10 6 5 The first set of indicators shows the extent 8 Typicala 4 to which firms perceive two components of in 6 Percent infrastructure as constraints: transportation 3 4 and electricity. Inadequate transportation 2 and problems with electricity increase costs, Incidents 2 1 disrupt production, and lower revenue. 0 0 Incidents/Typical Incidents/Year % of Sales Lost to Power The second set of indicators measures the Month of Power of Insufficient Outages quality of infrastructure: the number of Outages Water Supply* power outages and insufficiencies in water Botswana Africa Upper middle income supply per month and losses due to power * Manufacturing Sector outages. Service Delays Public Water The third set of indicators evaluates the Supply efficiency of infrastructure services by 35 66.5 measuring the delays in obtaining electricity 30 66 and telephone connections, and the relevance of public water supply in the Month 25 65.5 production process. 20 65 Typicala in 15 Percent 64.5 10 64 Incidents 5 63.5 0 63 Delays in Delays in % of Water from Public Obtaining Obtaining Sources Electricity Telephone Connections Connections (Days) (Days) * Manufacturing Sector http://www.enterprisesurveys.org Enterprise Surveys: BOTSWANA 5 Finance Access to Finance as a Constraint 50 Developed financial markets provide 45 payment services, mobilize deposits, and 40 ease investment financing. Efficient 35 financial markets reduce the reliance on 30 internal funds and money from informal Firmsfo 25 sources such as family and friends by 20 connecting firms to a broad range of Percent 15 lenders and investors. 10 Enterprise Surveys provide indicators of 5 0 how firms perceive their financial % of Firms Identifying % of Firms Using Banks to environment and finance their operations. Access/Cost of Finance as a Major Finance Investments or Expenses Constraint The first set of indicators measures the Botswana Africa Upper middle income extent to which firms perceive access to finance as a constraint to investment and provides a measure of access. Inadequate How Firms Finance Investment financing possibilities create difficulties in meeting short-term payments for labor and supplies as well as longer-term investment. Botswana The use of banks to finance investments or working capital is an initial indicator of access to credit. Africa The second set of indicators compares the relative use of various sources for financing Upper middle income investment. Excessive reliance on internal funds is a likely sign of inefficient financial intermediation. 0 20 40 60 80 100 % of Investments Financed by Internal Funds % of Investments Financed by Banks The third set of indicators focuses on the % of Investments Financed by Trade Credits use of bank loans and overdraft facilities, % of Investments Financed by Equity % of Investments Financed by Other Sources and quantifies the burden imposed by loan requirements, measured by collateral levels relative to the value of the loans. Excessive Access to Finance Value of Collateral loan collateral requirements are likely to constrain investment opportunities. 16 140 14 120 12 100 10 Firmsfo tn 80 8 rce Pe 60 6 Percent 4 40 2 20 0 0 % of Firms with Bank Value of Collateral (% of Loans/Line of Credit Loan Value) Botswana Africa Upper middle income http://www.enterprisesurveys.org Enterprise Surveys: BOTSWANA 6 Labor Labor Regulations and Labor Force Education as a Constraint 25 Jobs are the main source of income for people--and the main pathway out of 20 poverty for the poor. A sound investment climate contributes to the creation of employment opportunities, investment in Firms 15 the workforce, increases in wages, and, of ultimately, a more productive and 10 prosperous society. Percent 5 Enterprise Surveys collect information on the labor market constraints faced by firms and also on the characteristics of workers in 0 % of Firms Identifying Labor % of Firms Identifying Labor Skill the firms surveyed. Regulations as a Major Constraint Level as a Major Constraint The first set of indicators measures the Botswana Africa Upper middle income extent to which firms perceive labor regulations and labor skill level as Invesment in the Working Force constraints. 60 The second set of indicators highlights firm 50 investment in the skills and capabilities of their workforce. Incidence and intensity of 40 training is measured by the percent of manufacturing firms that offer formal 30 Percent training and the share of workers receiving 20 training. The quality of labor is measured by the share of skilled workers in the 10 manufacturing industry. 0 The third set of indicators presents the % of Firms Offering % of Workers % of Skilled Formal Training Offered Formal Production Workers composition of the firms' workforce by type Training of contract and gender. Labor regulations Botswana Africa Upper middle income have a direct effect on the type of employment and may have a differentiated impact by gender. The first two indicators Labor Force Composition Percent of Temporary present the composition of the workforce Female Workers broken down by permanent and temporary 40 60 workers. The following indicator reflects the 50 participation of women in temporary employment. rserkoWfo 30 40 Firms of 30 mber 20 Nu Percent20 erage 10 Av 10 0 0 Botswana Africa Upper Permanent Full Temporary middle Time Workers workers income Botswana Africa Upper middle income http://www.enterprisesurveys.org Enterprise Surveys: BOTSWANA 7 Corruption and Corruption as a Restriction 23.6 55 Regulatory Burden 23.4 50 45 23.2 40 The regulatory environment plays a Firms 23 35 significant role in shaping investment of 30 22.8 decisions and how firms do business. 25 Effective regulations address market failures 22.6 Percent 20 that inhibit productive investment and 22.4 15 reconcile private and public interests. 10 22.2 5 Conversely, inefficient regulations present 22 0 major administrative and financial burdens % of Firms Identifying % Firms Making Unofficial Corruption as Major Payments to Get Things on firms. In some environments regulations Constraint Done present opportunities for soliciting bribes when firms are required to make "unofficial" Botswana Africa Upper middle income payments to public officials to get things done. Bribe Tax 25 Enterprise Surveys provide qualitative and quantitative measures of corruption and 20 regulatory burdens. Firms 15 The first set of indicators focuses on the of perception of firms regarding corruption and 10 the share of firms making unofficial Percent payments, i.e., paying the "bribe tax". 5 The second set of indicators identifies the 0 extent to which specific regulatory and % of Firms Expected % of Firms Expected % of Firms Expected administrative officials require bribe to Give Gifts in to Give Gifts to to Give Gifts to payments with tax payments or to obtain a Meetings with Tax Obtain Operating Obtain Import license. Inspectors Licenses Licenses Botswana Africa Upper middle income The third set of indicators captures the "time tax" imposed by regulation. The first indicator measures the time spent by senior Regulation Time Tax 8 3.5 management in meetings with public officials in order to comply with government 7 3 regulations and the second measures the 6 Meeti 2.5 average number of tax inspections or 5 meetings with tax inspectors. Time 2 ngs of 4 /Year 1.5 3 Percent 2 1 1 0.5 0 0 Botswana % Senior ManagementAfrica DealingUpper Government Time with middle income Regulations Time Spent in Tax Inspection Meetings (Meetings/Year) http://www.enterprisesurveys.org Enterprise Surveys: BOTSWANA 8 Courts and Crime Courts and Crime as a Constraint 30 Commercial disputes between firms and their clients occur regularly in the course 25 of doing business. Resolving these 20 disputes can be challenging when legal Firms institutions are weak or non-existent. of 15 10 Often, the only recourse for firms to Percent resolve commercial disputes is the court 5 system. However, not only are outcomes uncertain, but also this process can be 0 % of Firms Identifying Legal % of Firms Identifying Crime, lengthy and expensive. Similarly, crime System/Conflict Resolution as a Theft and Disorder as a Major imposes costs on firms when they are Major Constraint Constraint forced to divert resources from productive uses to cover security costs. Botswana Africa Upper middle income Enterprise Surveys capture key dimensions of contract enforcement Contract Enforcement problems and the effect of crime on firm 80 revenue. 70 The first set of indicators shows the share 60 of firms that identify the performance of 50 courts of justice and crime as major Firms of constraints to their operations. 40 30 Percent The second set of indicators includes two 20 perceptions regarding the quality of the service offered by courts. The third 10 indicator shows the share of firms 0 resolving third-party disputes through % Firms Believe Court % Firms Believe Court % of Firms Resolving court action. System is Able to Enforce System is Disputes Through Court its Decisions Fair/Impartial/Uncorrupted Action The third set of indicators measures the Botswana Africa Upper middle income direct costs of security incurred by firms and losses due to crime. These resources Cost of Crime represent an opportunity cost since they 6.0 could have been invested in productive activities. 5.0 4.0 Sales of 3.0 Percent 2.0 1.0 0.0 Costs of Security (% of Sales) Losses Due to Crime (% of Sales) Botswana Africa Upper middle income http://www.enterprisesurveys.org Enterprise Surveys: BOTSWANA 9 Innovation and Innovative Capability of the Manufacturing Sector Technology 12.8 90 12.6 80 70 In order to survive and prosper in a 12.4 60 competitive marketplace, firms must Firms 12.2 Firms 50 innovate and increase their of 12 of 40 productivity. A sound investment 11.8 30 climate encourages firms to experiment Percent11.6 Percent 20 and learn; it rewards success and 11.4 10 punishes failure. 11.2 0 % of Firms With an % of Firms Undertaking Enterprise Surveys provide indicators Internationally- Innovation that describe several dimensions of Recognized Quality Certification technological efficiency and innovation. Botswana Africa Upper middle income The first set of indicators measures the extent to which manufacturing firms invest in industry-recognized level of External Competition as Driver of Efficiency quality as well as the share of firms 80 undertaking innovation. In this context, 70 innovation encompasses the development or upgrade of product 60 lines and the introduction of new Firms 50 production technologies. of 40 30 The second set of indicators quantifies Percent 20 the effect of foreign and domestic competition in lowering production 10 costs for manufacturing firms. 0 % of Firms Identifying Foreign % of Firms Identifying Domestic The third set of indicators demonstrates Competition as Important Competition as Important Influence in Lowering Production Influence in Lowering Production the use of information and Costs Costs communications technologies (ICT) in Botswana Africa Upper middle income business transactions. ICT, such as the Internet, are important tools for all firms because they provide even the Use of Internet smallest of enterprises with the ability 70 to reach national and international markets at low cost. 60 50 Firms 40 of 30 Percent20 10 0 % of Firms Using E-mail to Interact % of Firms Using Website to with Buyers/Suppliers/Customers Interact with Buyers/Suppliers/Customers Botswana Africa Upper middle income http://www.enterprisesurveys.org Enterprise Surveys: BOTSWANA 10 Trade Customs and Trade Regulations as a Constraint 18 Open markets allow firms to expand, 16 force greater efficiencies on exporters, 14 and enable the import of lower-cost supplies. However, trading also forces 12 Firms firms to deal with customs services and of 10 trade regulations, obtain export and 8 import licenses, and in some cases, face Percent 6 additional costs due to losses during transport. 4 2 Enterprise Surveys collect information on 0 the constraints faced by exporters and % of Firms That Trade % of Firms That Trade importers and also capture the trade Identifying Customs & Trade activity of firms. Regulations as a Major Constraint Botswana Africa Upper middle income The first set of indicators shows the extent to which firms that trade directly, Inefficiencies in Customs i.e. those that export or import without 12 going through a distributor, consider customs and trade regulations to be a 10 constraint. 8 The second set of indicators measures 6 the average number of days to clear Days customs for imports and exports. The 4 delay in clearing customs for imports or exports creates additional costs to the 2 firm and can interrupt production, 0 interfere with sales, and result in Days on Average to Claim Imports Days on Average to Clear Customs damaged supplies or merchandise. From Customs* for Exports Botswana Africa Upper middle income The third set of indicators shows the * Manufacturing Sector share of exports lost during transport due to theft or merchandise breakage or spoilage, reflecting the transport risks Exports Activity that firms must cover during the export 3.5 process. 3 2.5 2 Percent1.5 1 0.5 0 % Value of Exports Lost Due to % Value of Exports Lost Due to Theft Breakage or Spoilage Botswana Africa Upper middle income http://www.enterprisesurveys.org Enterprise Surveys: BOTSWANA 11 Summary of Enterprise Survey Indicators Small Medium (20- Large Upper Botswana (1-19 99 (100+ Africa middle employees) employees) employees) income Percent of Firms Identifying the Problem as the Main Obstacle Electricity 1.7 2.5 0.0 0.0 37.2 1.7 Transportation 2.2 2.5 1.9 1.2 4.0 2.2 Access to Land 9.2 10.2 7.9 4.7 3.6 9.2 Tax Rates 7.6 6.4 10.8 8.0 10.6 7.6 Tax Administration 0.6 0.6 0.5 1.2 1.5 0.6 Customs and Trade Regulations 1.6 1.2 1.3 4.9 2.5 1.6 Labor Regulations 1.6 0.7 2.6 6.1 0.6 1.6 Skills and Education of Available Workers 9.3 5.0 16.8 22.4 2.9 9.3 Business Licensing and Operating Permits 7.5 6.4 9.7 10.4 2.2 7.5 Access to Financing (Availability and Cost) 25.1 31.1 14.9 5.1 14.5 25.1 Political Instability 0.7 1.1 0.0 0.0 2.6 0.7 Corruption 8.2 8.7 5.9 9.7 3.9 8.2 Crime, Theft and Disorder 11.2 10.5 14.1 9.4 5.0 11.2 Anti-Competitive or Informal Practices 12.0 12.9 10.2 9.7 8.3 12.0 Legal System/Conflict Resolution 1.5 0.0 3.5 7.3 0.7 1.5 Infrastructure Indicators % of Firms Identifying Transportation as a Major Constraint 13.4 13.4 15.1 8.9 22.4 13.4 % of Firms Identifying Electricity as a Major Constraint 6.8 6.5 7.5 7.1 55.3 6.8 Incidents/Typical Month of Power Outages 2.0 2.2 1.6 1.8 12.5 2.0 Incidents/Year of Insufficient Water Supply 1.8 1.8 0.0 0.0 8.0 1.8 % of Sales Lost to Power Outages 1.8 1.8 1.9 0.8 7.2 1.8 Delays in Obtaining Electricity Connections (Days) 25.5 10.1 68.7 29.4 28.7 25.5 Delays in Obtaining Telephone Connections (Days) 22.8 19.9 20.6 36.7 29.1 22.8 % of Water from Public Sources 66.0 63.9 65.6 71.6 64.2 66.0 Finance Indicators % of Firms Identifying Access/Cost of Finance as a Major Constraint 41.4 50.0 29.3 7.7 45.4 41.4 % of Firms Using Banks to Finance Investments or Expenses 18.6 14.3 26.1 31.4 17.4 18.6 % of Investments Financed by Internal Funds 77.1 79.4 73.9 72.1 78.0 77.1 % of Investments Financed by Banks 14.9 10.7 21.0 24.3 10.3 14.9 % of Investments Financed by Trade Credits 3.9 4.4 2.7 3.6 2.5 3.9 % of Investments Financed by Equity 0.0 0.0 0.0 0.0 0.1 0.0 % of Investments Financed by Other Sources 4.0 5.5 2.4 0.0 7.7 4.0 % of Firms with Bank Loans/Line of Credit 14.8 8.2 27.9 30.2 11.1 14.8 Value of Collateral (% of Loan Value) 106.4 111.1 112.1 81.7 130.3 106.4 http://www.enterprisesurveys.org Enterprise Surveys: BOTSWANA 12 Summary of Enterprise Survey Indicators Small Medium (20- Large Upper Botswana (1-19 99 (100+ Africa middle employees) employees) employees) income Labor Force Indicators % of Firms Identifying Labor Regulations as a Major Constraint 9.0 7.3 10.1 18.9 6.9 9.0 % of Firms Identifying Labor Skill Level as a Major Constraint 19.5 14.4 29.0 33.7 17.1 19.5 % of Firms Offering Formal Training 37.7 29.1 47.3 42.9 29.5 37.7 % of Workers Offered Formal Training 53.8 65.3 47.5 49.4 52.6 53.8 % of Skilled Production Workers 48.9 57.7 38.2 45.6 45.0 48.9 Number of Permanent Full Time Workers 29.1 8.7 35.8 174.2 18.2 29.1 Total Number of Temporary Workers 7.4 1.6 17.6 24.6 9.2 7.4 Percent of Temporary Workers - Female 52.4 58.8 45.4 38.0 27.8 52.4 Regulatory Burden and Corruption Indicators % of Firms Identifying Corruption as Major Constraint 22.6 24.8 22.9 4.9 23.4 22.6 % Firms Making Unofficial Payments to Get Things Done 27.6 32.5 18.0 17.4 48.1 27.6 % of Firms Expected to Give Gifts in Meetings with Tax Inspectors 4.5 3.2 8.5 2.3 21.2 4.5 % of Firms Expected to Give Gifts to Obtain Operating Licenses 3.3 3.5 1.9 5.0 20.6 3.3 % of Firms Expected to Give Gifts to Obtain Import Licenses 0.0 0.0 0.0 0.0 21.2 0.0 % Senior Management Time Dealing with Government Regulations 5.8 5.4 6.9 6.3 6.7 5.8 Time Spent in Tax Inspection Meetings (Meetings/Year) 1.7 1.5 1.8 2.1 3.2 1.7 Courts and Crime Indicators % of Firms Identifying Legal System/Conflict Resolution as a Major Constraint 3.9 1.6 9.4 7.1 9.4 3.9 % of Firms Identifying Crime, Theft and Disorder as a Major Constraint 24.0 27.1 17.9 17.1 22.6 24.0 % Firms Believe Court System is Able to Enforce its Decisions 68.6 67.2 72.2 70.6 57.6 68.6 % Firms Believe Court System is Fair/Impartial/Uncorrupted 69.6 68.1 69.3 82.0 45.4 69.6 % of Firms Resolving Disputes Through Court Action 65.0 57.9 63.6 89.4 59.4 65.0 Costs of Security (% of Sales) 2.9 3.4 2.0 1.5 2.6 2.9 Losses Due to Crime (% of Sales) 3.1 3.6 3.4 1.0 4.9 3.1 Innovation and Technology Indicators % of Firms With an Internationally-Recognized Quality Certification 12.7 0.1 0.2 0.2 11.8 12.7 % of Firms Undertaking Innovation 80.2 80.2 80.5 79.8 63.2 80.2 % of Firms Identifying Foreign Competition as Important Influence in Lowering Production Costs 60.1 58.7 59.6 64.7 40.9 60.1 % of Firms Identifying Domestic Competition as Important Influence in Lowering Production Costs 69.0 73.8 62.2 68.2 59.4 69.0 % of Firms Using E-mail to Interact with Buyers/Suppliers/Customers 44.2 36.4 54.2 77.9 37.4 44.2 % of Firms Using Website to Interact with Buyers/Suppliers/Customers 13.3 8.8 18.5 34.1 13.9 13.3 http://www.enterprisesurveys.org Enterprise Surveys: BOTSWANA 13 Summary of Enterprise Survey Indicators Small Medium (20- Large Upper Botswana (1-19 99 (100+ Africa middle employees) employees) employees) income Trade Indicators % of Firms That Trade 7.0 4.0 11.6 18.5 7.4 7.0 % of Firms That Trade Identifying Customs & Trade Regulations as a Major Constraint 10.9 11.6 10.0 7.5 17.0 10.9 Days on Average to Claim Imports From Customs* 2.2 2.4 2.3 1.8 9.7 2.2 Days on Average to Clear Customs for Exports 1.2 1.4 1.0 1.4 5.3 1.2 % Value of Exports Lost Due to Theft 0.6 1.0 0.3 0.5 1.7 0.6 % Value of Exports Lost Due to Breakage or Spoilage 0.6 0.7 0.7 0.1 3.0 0.6 Notes: 1- Country-level indicators denoting percent of firms use as denominators the number of firms for which data for the respective question is available. Country-level indicators denoting quantities (i.e., number of days, percent of sales, percent of loan value, etc.) represent the average of responding firms that are not considered to be outliers. Outliers are defined as firms with values greater than the mean plus 3 times the standard deviation or lower than the mean minus 3 times the standard deviation for that particular indicator. Regional and income group indicators are calculated as the averages of country-level indicators in the respective region and income groups. 2 - Indicators for Africa, the low middle income group, the lower middle income group, and the upper middle income group were calculated using country data available at the time of publication. a. Africa : Africa: Angola, Botswana, Burundi, Capeverde, Democratic Republic of Congo, Gambia, Guinea, Guinea Bissau, Mauritania, Namibia, Rwanda, Swaziland, Tanzania, Uganda. b. Low Income Group: Burundi, Democartic Republic of Congo, Gambia, Guinea, Guinea Bissau, Mauritania, Rwanda, Tanzania, Uganda. c. Lower Middle Income Group: Angola, Cape Verde, Namibia, Swaziland. d. Upper Middle Income Group : Botswana * Manufacturing sector only 3. The sample for each country is stratified by industry, firm size, and geographic region. For stratification by industry the main manufacturing sectors in each country in terms of value added, number of firms, and contribution to employment are selected. The retail trade sector is also included in all countries as a representative of the services sector, and depending on the size of the economy, the information technology (IT) sector is included. The rest of the universe is included in a residual stratum. Stratification by size follows the three levels presented in the text: small, medium, and large. Regional stratification includes the main economic regions in each country. Through this methodology estimates for the different stratification levels can be calculated on a separate basis while at the same time inferences can be made for the economy as a whole, weighting individual observations by corresponding sample weights. Sample sizes for each stratification level are defined ensuring a minimum precision level of 7.5% with 95% confidence intervals for estimates with population proportions (for more technical details on the sampling strategy, please review the Sampling Note available at www.enterprisesurveys.org). 4. In Botswana included cities were: 2 Selected Manufacturing Industries Manufacturing sector 114 Retail 118 Other sectors 110 Total 342 http://www.enterprisesurveys.org Enterprise Surveys: BOTSWANA 14 © June 2007 International Bank of Reconstruction and Development The World Bank 1818 H Street, NW Washington, DC 20433 USA Enterprise Analysis Unit (FPDEA) MSN-F4P-400 Fax: 001 202-522-2029 The findings, interpretations, and conclusions presented herein are those of the authors and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. http://www.enterprisesurveys.org Enterprise Surveys: BOTSWANA 15