Publication:
Botswana Mining Investment and Governance Review

Loading...
Thumbnail Image
Files in English
English PDF (1.9 MB)
6,980 downloads
Date
2016-08
ISSN
Published
2016-08
Editor(s)
Abstract
The Botswana Mining Investment and Governance Review (MInGov) collects and shares information on mining sector governance, its attractiveness to investors and how its activities affect national development. It reviews sector performance from the perspective of three main stakeholder groups – government, investors in the mining value chain and civil society – and identifies gaps between declared and actual government policy and practice. The reviews findings are: Performance across the minerals value chain is better in the latter stages related to investment, accumulation, and expenditure of mineral revenue. The mining policy and legal framework are largely sound. The environmental protection legislation is quite current and mostly based on ‘good practice’ except for access to Environmental Impact Assessments. Land use issues, including resettlement and compensation, require a more inclusive process and stronger legislated framework. A local content policy for the mining industry should be developed with mining sector participation to ensure that both the needs of government and industry are met. Institutions are for the most part staffed with trained, qualified people although sometimes there are not sufficient numbers of staff with the required experience. The top shared priority by all three stakeholder groups is Sector Management and Intragovernmental Coordination. MInGov’s methodology focuses on the status of governance and investment conditions in the mining sector from the perspective of stakeholders, and as reportedin primary and secondary sources.
Link to Data Set
Citation
World Bank Group. 2016. Botswana Mining Investment and Governance Review. © World Bank. http://hdl.handle.net/10986/25225 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Democratic Republic of Congo : Growth with Governance in the Mining Sector
    (Washington, DC, 2008-05) World Bank
    This study examines the mining sector's potential to contribute to economic growth with governance in the Democratic Republic of Congo. In the past, mining has been the main engine of the Congo economy. But the revenues and other benefit streams generated by the sector over the years have not been used in a wise or sustainable fashion, largely due to key problems with sector governance. During the past ten years of civil war and conflict, flagship industrial mining declined substantially, and informal and artisanal mining expanded significantly. Now that peace has returned to most of the country and a new democratically elected Government is in place, the potential for the mining sector to contribute to economic growth is excellent. However, achieving growth with governance depends on three principal internal and external factors. The first of these, international commodity prices, is largely out of the Government's control. The second factor, political stability, is clearly critical to growth of the sector; however, a detailed discussion of this factor is outside the scope of this study. The third factor, rent-seeking culture, is at the heart of the challenge that the Government must overcome to ensure sustained sector growth with good governance. The probable future decline and fluctuation of commodity prices has several implications for the mining sector in DRC. First, the amount of investment funding available for minerals exploration and investment falls or rises in tandem with the commodity prices. During the first quarter of 2008 there has already been a significant fall-off in the amount of funding for smaller companies in the international exchanges, due in part to the financial turbulence in the markets. This fall-off in investment funding could be exacerbated further by a significant downturn in commodities prices. Second, producing companies will generate lower revenues, and the government will have a consequent decline in fiscal receipts. Third, companies will face pressure to maximize their economies of scale, generally by increasing through-put in order to meet fixed costs. At the same time, because of lower sales revenues, companies will be forced to reduce operating costs, often by cutting staff and social services. Fourth, lower commodity prices will have a direct effect on the artisanal producers of mineral commodities, whose day-to-day dependence on the amounts earned in the mines renders them highly vulnerable to fluctuations.
  • Publication
    Republic of Congo : Mining Sector Review
    (Washington, DC, 2012-10) World Bank
    The Republic of Congo covers an area of 342,000 square kilometers (km), of which forests occupy three-fifths, the rest being dominated by savannah. Oil has long been the principal resource of Congo. Since the first exploitations were launched in 1970, the oil sector has become the dominant economic activity and major source of income for the state. The growth rate in real terms was 8.8 percent in 2010, with gross domestic product (GDP) per capita reaching $4532. In 2010, GDP nearly reached two digit growths, driven up by a significant increase of oil production, by reinforcement of non-oil activities, in particular forest industry, construction and telecommunications. The Government made development of the mining sector a priority to diversify the economy. The present review of the mining sector, led by World Bank in partnership with the Ministry of Geology and Mining, aims to update and understand further these characterizations, to document the prospects and challenges of mining development and to prioritize actions that optimize the sector's contribution to economic diversification and sustainable development. This review of mining sector helped to characterize the issues of governance in following four areas: (1) promotion of geological heritage and mineral resources; (2) facilitating entry into production; (3) continuous improvement of the political, institutional, legal and regulatory framework; and (4) optimization of the sector's contribution to diversification. After this study, an action plan to improve the mining sector can be outlined.
  • Publication
    Mining Royalties : A Global Study of Their Impact on Investors, Government, and Civil Society, Appendixes
    (Washington, DC : World Bank, 2006) Otto, James; Andrews, Craig; Cawood, Fred; Doggett, Michael; Guj, Pietro; Stermole, Frank; Stermole, John; Tilton, John
    Mineral sector regulatory and fiscal systems have been undergoing major reforms across the globe. This book focuses on information and analysis relating to mineral royalties. It provides a general discussion of the concepts behind mining taxation, a guide to royalties, examples of royalty calculations and the ways in which these interact with other forms of taxation, as well as financial effects on investments under varying conditions. Primary information includes royalty legislation from over forty nations. The book discusses implications for investors and governments of various tax regimes and provides specific country case examples. A chapter is included on transparency, governance, and management of revenue streams. The appendices, in the second volume, contain brief summaries and selected statutes relating to royalties in a broad cross-section of nations around the world; sample spreadsheets of the results of mine models that were analyzed; and examples of administrative and distributional approaches to collecting royalties.
  • Publication
    Increasing Local Procurement By the Mining Industry in West Africa : Road-test version
    (World Bank, 2012-01) World Bank
    Regional organizations and national governments are increasingly focusing on enhancing the benefits from mining sector investment. The Africa Union's African Mining Vision 2050 outlines a new resource-based industrialization and development strategy for Africa, based on downstream, upstream, and side stream linkages, and both Economic Community of West African States (ECOWAS) and West African Economic Monetary Union (WAEMU) have developed mineral development strategies. National governments are also increasingly looking for ways to maximize benefits derived from investment in mining. This report aims to support efforts to maximize local procurement by the mining sector by providing policy recommendations for national governments and regional organizations. It also aims to provide guidance to the private sector and civil society on steps for increasing local procurement. The report takes a regional approach, driven by the potential to realize economies of scale and build on areas of competitiveness across the West African region. This document presents the outcomes of the World Bank project to support local procurement by the mining sector in West Africa. The project objectives were to (i) inform government policy related to supporting increased local procurement by the mining industry; and (ii) inform public debate/facilitate knowledge exchange between all major stakeholders, including regional organizations (ECOWAS and WAEMU), mining companies, civil society, and other supporting institutions (financial institutions, partners, training institutes, etc.). This report is the result of desk research, interviews, and analysis across West Africa, in particular in Ghana, Guinea, Senegal, Mali, and Burkina Faso; field research in Ghana, Guinea, and Senegal; research into benchmark countries; and stakeholder consultation, including three workshops held in Ghana and Guinea in September 2011. It also draws on research into global best practice. This focus on local procurement represents a shift in policy approach: rather than concentrating on the contribution by mining companies through taxes, governments are increasingly exploring ways in which mines can become more closely integrated with local economies. This report provides guidance to policymakers for setting policies and developing regulations to create a supporting framework for increasing local procurement.
  • Publication
    Sierra Leone - Mining Sector Reform : A Strategic Environmental and Social Assessment
    (Washington, DC, 2008-07) World Bank
    The Strategic Environmental and Social Assessment (SESA) of the mining sector in Sierra Leone was undertaken in response to the Government of Sierra Leone's (GOSL) request for assistance in developing its minerals policy. The SESA will help meet long-term country development by integrating environmental and social considerations in mining sector reforms. The crucial aspect of the SESA process is that the environmental and social priorities for mining reforms were identified by stakeholders in the four regions of the country. This report, the culmination of a sequence of workshops and analytic work, provides a summary of the findings of the SESA process and makes recommendations on the policy, institutional, and governance changes required addressing environmental and social priorities in reform of the Sierra Leone mining sector. The SESA pays particular attention to political economy issues such as the potential capture or watering down of reforms by groups having vested interests or the danger of selective implementation of new policies and regulations due to pressure from powerful interest groups. It helps to identify innovative solutions to some of the potential problems and the limitations of new mining policies in a situation where institutional and governance capacity are likely to be weak for some time.

Users also downloaded

Showing related downloaded files

  • Publication
    World Development Report 2017
    (Washington, DC: World Bank, 2017-01-30) World Bank Group
    Why are carefully designed, sensible policies too often not adopted or implemented? When they are, why do they often fail to generate development outcomes such as security, growth, and equity? And why do some bad policies endure? This book addresses these fundamental questions, which are at the heart of development. Policy making and policy implementation do not occur in a vacuum. Rather, they take place in complex political and social settings, in which individuals and groups with unequal power interact within changing rules as they pursue conflicting interests. The process of these interactions is what this Report calls governance, and the space in which these interactions take place, the policy arena. The capacity of actors to commit and their willingness to cooperate and coordinate to achieve socially desirable goals are what matter for effectiveness. However, who bargains, who is excluded, and what barriers block entry to the policy arena determine the selection and implementation of policies and, consequently, their impact on development outcomes. Exclusion, capture, and clientelism are manifestations of power asymmetries that lead to failures to achieve security, growth, and equity. The distribution of power in society is partly determined by history. Yet, there is room for positive change. This Report reveals that governance can mitigate, even overcome, power asymmetries to bring about more effective policy interventions that achieve sustainable improvements in security, growth, and equity. This happens by shifting the incentives of those with power, reshaping their preferences in favor of good outcomes, and taking into account the interests of previously excluded participants. These changes can come about through bargains among elites and greater citizen engagement, as well as by international actors supporting rules that strengthen coalitions for reform.
  • Publication
    Tanzania Diagnostic Review of Consumer Protection and Financial Literacy
    (World Bank, Washington, DC, 2013-11) World Bank Group
    In 2011, only 17.3 percemt of adults in Tanzania had an account at a formal financial institution and 56 percemt did not have any access to financial services. Most of the population lives in rural areas with very low incomes and poor infrastructure, and women are especially disadvantaged. Such limited access to formal financial services also inhibits financial literacy – awareness of benefits and risks, and how to take advantage of opportunities. Despite significant challenges, all institutional elements of the formal financial sector in Tanzania are in place, helping its gradual expansion, and in some segments technology is driving rapid growth – particularly in mobile and electronic payments. Still, gaps and weaknesses in financial consumer protection and financial education remain some of the main obstacles to sustainability and greater trust in the financial sector. This Diagnostic Review was requested by the Ministry of Finance of Tanzania in November 2012. It provides a detailed assessment of Tanzania’s institutional, legal and regulatory framework against the World Bank’s Good Practices for Financial Consumer Protection. Three segments of the financial sector have been analyzed: banking, microfinance, and pensions. Insurance and securities segments will be considered at a later stage. Volume I of the Review summarizes the key findings and recommendations and Volume II presents a detailed assessment of each financial segment compared to the Good Practices.
  • Publication
    Tanzania
    (World Bank, Washington, DC, 2015-06) Arce, Carlos E.; Caballero, Jorge
    This study aims to achieve a better understanding of the agricultural risk and risk management situation in Tanzania with a view to identifying key solutions to reduce current gross domestic product (GDP) growth volatility. For the purpose of this assessment, risk is defined as the probability that an uncertain event will occur that can potentially produce losses to participants along the supply chain. Persistence of unmanaged risks in agriculture is a cause of great economic losses for farmers and other actors along the supply chains (for example, traders, processors, and exporters), affecting export earnings and food security. The agricultural sector risk assessment is a straightforward methodology based on a three-phase sequential process. Phase analyzes the chronological occurrence of inter-seasonal agricultural risks with a view to identify and prioritize the risks that are the drivers of agricultural GDP volatility. This report contains the findings and recommendations of the first phase and includes the identification, analysis, and prioritization of major risks facing the agricultural sector in Tanzania, as well as recommendations regarding key solutions. Chapter one gives introduction and context. Chapter two contains an overview of the agricultural sector and its performance, as well as a discussion of key agro-climatic, weather, and policy restrictions and opportunities. Chapter three includes an assessment of major risks (that is, production, market, and enabling environment risks) facing key export and food crops. Chapter four presents an estimate of historical losses due to realized production risks and a correlation of such losses with production volatility. Chapter five provides insights into the exposure to risks by different stakeholders and their actual capacities, vulnerabilities, and potential to manage agricultural risks. Chapter six presents a risk prioritization by different supply chains and discusses the possible solutions, as well as specific recommendations for the agricultural sector development program (ASDP).
  • Publication
    Africa's Future, Africa's Challenge : Early Childhood Care and Development in Sub-Saharan Africa
    (Washington, DC : World Bank, 2008) Garcia, Marito; Pence, Alan; Evans, Judith L.
    This book seeks to achieve a balance, describing challenges that are being faced as well as developments that are underway. It seeks a balance in terms of the voices heard, including not just voices of the North commenting on the South, but voices from the South, and in concert with the North. It seeks to provide the voices of specialists and generalists, of those from international and local organizations, from academia and the field. It seeks a diversity of views and values. Such diversity and complexity are the reality of Sub-Saharan Africa (SSA) today. The major focus of this book is on SSA from the Sahel south. Approximately 130 million children between birth and age 6 live in SSA. Every year 27 million children are born, and every year 4.7 million children under age 5 die. Rates of birth and of child deaths are consistently higher in SSA than in any other part of the world; the under-5 mortality rate of 163 per 1,000 is twice that of the rest of the developing world and 30 times that of industrialized countries (UNICEF 2006). Of the children who are born, 65 percent will experience poverty, 14 million will be orphans affected by HIV/AIDS directly and within their families and one-third will experience exclusion because of their gender or ethnicity.
  • Publication
    World Development Report 1984
    (New York: Oxford University Press, 1984) World Bank
    Long-term needs and sustained effort are underlying themes in this year's report. As with most of its predecessors, it is divided into two parts. The first looks at economic performance, past and prospective. The second part is this year devoted to population - the causes and consequences of rapid population growth, its link to development, why it has slowed down in some developing countries. The two parts mirror each other: economic policy and performance in the next decade will matter for population growth in the developing countries for several decades beyond. Population policy and change in the rest of this century will set the terms for the whole of development strategy in the next. In both cases, policy changes will not yield immediate benefits, but delay will reduce the room for maneuver that policy makers will have in years to come.