1. Natural Capital Accounts Policy Implications
Presentation by Tshepo Setlhogile, Centre for Applied Research
Natural Capital Accounting Stakeholder Workshop
Majestic Five Hotel, Palapye

2. Structure NCA objectives, SEEA framework and use for policy;
NCA policy priorities for Botswana and examples from specific NCA;
Conclusions & recommendations

3. UN SEEA as global standard for NCA
Objectives
Use
Development of data sets
Used as a tool towards informed policies:
Development planning
Resource planning
Policy performance reviews (M&E of NDPs and Vision 2036; SDGs)
International comparisons
Show trend in resource availability;
Measure the economic benefits per resource unit (efficiency);
Show the supply costs, revenues and subsidies;
Development of indicators to inform policy analysis.

4. Figure 1: The information pyramid
Deriving policy information from NCA
Figure 1: The information pyramid
Information
Information users
Data
Accounts
Indicators
Decision makers & wider public
Managers
and analysts
Researchers
Source: UNSD, 2014

5. NCA Policy priorities in Botswana
Water Accounts: 
Assess water scarcity/availability, uses and their efficiency.
Mineral Accounts: 
Determine country’s economic benefits of each mineral (‘rent’), lifetime of mineral stocks, support decisions regarding the investment of non-renewable mineral revenues.
Energy Accounts: 
Assess electricity scarcity and security (imports and domestic generation) and emissions associated with coal fired electricity generation.
Macroeconomic indicators of sustainable development: 
to assess the prospects for long-term, sustainable growth.

6. Examples of NCA indicators and policy implications

7. 1. Water
Figure 1: Policy indicators for water resource availability

8. Table 1: Policy indicators for water use efficiency: value added and employment creation per m3
Variable
Sub variable
Units
2010/11
2011/12
2012/13
2013/14
2014/15
Value added
Value added all abstracted water
BP constant 2006/m3
355.73
382.84
400.45
420.06
458.79
Value added all consumed water
408.87
435.98
437.26
483.44
516.79

9. 2. Energy
Figure 2: Electricity use and contributions to GDP by sector (2014/15)

10. Figure 3: Electricity consumption (% of total consumption, 2014/15)

11. Figure 4: Trend in domestic electricity generation, imports and consumption (2010/11-2014/15; MWh)

12. 3. Minerals Resource rent: On average 19% of GDP over period 1994-2014
Varies enormously by mineral (Econsult, 2016); mostly from diamonds.
Diamonds: P17.4 billion
Copper-nickel: P 0.6 billion
Coal: -P 0.6 billion
Gold: P 0.0 billion
Soda ash: P 0.5 billion

13. 4. Macro economic indicators: savings
Botswana does much better than many mineral rich countries (WB’s Changing Wealth of Nations 2018)
Positive and high Adjusted Net National Savings (ANNS) (30-40% of net adjusted income ( ; Econsult, 2016)

14. Macro economic indicators: assets
Growth in assets
Change in asset composition:
rise in produced cap. (as %)
decline in mineral cap. (as %)

15. Conclusions and recommendations
NCA are tools for better informed sustainable development planning and resource management;
Policy priorities need to determine which accounts and which components need to be developed first (and next);
Policy analysis and stakeholder outreach must follow the account construction;
NCA should be used in modelling & evaluation of future development planning scenarios;
Need for regular high level policy engagement to discuss NCA results and priorities for further development.

16. Contacts:
Tshepo Setlhogile or