United Nations Economic Commission for African Centre for

United Nations Economic Commission for African Centre for Statistics Towards Implementation of the 2008 SNA in Africa: Importance, Challenges, and Road Map Xiaoning Gong Chief, Economic Statistics and National Accounts Section African Centre for Statistics (ACS) United Nations Economic Commission for Africa (UNECA) at Seminar on Developing a Programme for the Implementation of 2008 SNA and Supporting Statistics in Southern Africa, 17 -19 October 2012, Pretoria, South Africa

Presentation Outline • Importance of the System of National Accounts (SNA) • Current Status of SNA in African Countries • Road Map towards Implementation of SNA 2008 African Centre for Statistics

Importance of SNA • National Accounts are, arguably, one of the most important modern tools of economic analysis and policy making: – Systematic and strong base of macroeconomics – Application of double-entry accounting principle – International standard methodology – Mathematization and computerization of the work – Complete picture of whole economic process – High relevance and orientation of current policies African Centre for Statistics

Importance of SNA: Chinese GDP in USD African Centre for Statistics

Current Status of SNA in African Countries • Limited Human, Financial, and Technical Resources • Weak Capacity and Statistical Infrastructure • Unharmonious National Accounts Systems in the Continent • Inconsistency and Incompleteness in the Data Coverage of the Economy • Early Stages in the Development of National Accounts African Centre for Statistics

Limited Human, Financial, and Technical Resources • National Accounts in Africa is mainly compiled by – National Statistical Offices (89%) – Other Ministries & Central Banks (11%) • Average number of NA Statisticians per country = 8 • High turnover rate: 4 professional staff have left from the NA Department in the last five years • Half of the countries: “Number of PC available in NA Department” < “Number of National Accounts staff” African Centre for Statistics

Weak Capacity and Statistical Infrastructure • Relied mostly (60% 70%) on Administrative Records to meet the minimum requirement datasets for National Accounts • Analytical capacity, dissemination, and networks with users and respondents: – On average, it takes 5 months to release the first estimate – The final estimate takes around 17 months – Advance release calendar exists only in about half of the countries African Centre for Statistics

Unharmonious National Accounts Systems in the Continent • SNA • ISIC • CPC African Centre for Statistics

Inconsistency and Incompleteness in the Data Coverage of the Economy According to ICP-Africa 2005, the following areas have not been well captured: – Imputed rents of owner-occupied dwellings – Own-account production and consumption – Informal sector – Non-profit institutions and civil societies – State and local government, and – Aid agencies African Centre for Statistics

Early Stages in the Development of National Accounts • • • 20% of the total African countries have reached only to Milestone 1: Basic Indicators of GDP at Current and Constant Prices; Final Expenditures on GDP and GDP by Industry. 65% have so far reached to Milestone 2: to produce additional economic aggregates of GNI, and other primary indicators; External Account of Primary Income and Current Transfers, Capital and Financial Accounts for the Rest of the World. 15% (eight) African countries have reached to Milestone 3: Production Account for All Institutional Sectors; while Income Accounts, Capital Accounts, and Financial Accounts for General Government. African Centre for Statistics

Road Map towards Implementation of SNA 2008 • SNA Regional Pro. Doc: Scheme – Contents of main activities and – Roles played by AGNA members African Centre for Statistics

SNA Regional Pro. Doc: Scheme Institutional Strengthening Methodological Development Training Technical Assistance Advocacy Campaign Monitoring, Evaluation and Reporting African Centre for Statistics

Methodological Development • To develop a set of manuals/handbooks/guides for implementation of SNA 2008 • To discuss and find solutions for technical issues and challenges in the implementation of SNA 2008 in Africa • To be carried out by Task Force Teams of AGNA Countries RECs Methodological Development Pan-African Inst. African Centre for Statistics

Capacity Building: Training • Self-training of AGNA through Task Teams working on technical issues • Regional seminars/workshops/meetings to disseminate Manuals/Handbooks/Guides • Training of national accountants at national levels by AGNA members Countries RECs Training Pan-African Inst. African Centre for Statistics

Capacity Building: Technical Assistance • Provided by Pan-African Institutions, RECs, Regional National Accounts Advisors upon the request of Member States • To countries: lagging behind in the implementation of the 1993 SNA, ICP Africa 2005 non-participating countries, and Fragile and Small Developing countries RECs Technical Assistance Pan-African Inst. African Centre for Statistics

Institutional Strengthening • Through AGNA, to establish commonly agreed timelines, procedures, and standards in the Continent, e. g. : – To compile NA statistics according to timeline in respect of the national, sub-regional, and regional requirements – To optimize and rationalize production and analysis of NA – To develop training programs and modules of NA – To set up national accountant’s profile Countries RECs Institutional Strengthening Pan-African Inst. African Centre for Statistics

Advocacy Campaign • To organize advocacy at continental, sub-regional, and national levels: e. g. through DG meetings, Conference of Ministers, Summits of Heads of States, and parliaments • Prepare advocacy materials and tools to publicize and sensitize the usefulness of NA statistics in policy- and decision-making for governments and publics Countries RECs Advocacy Campaign Pan-African Inst. African Centre for Statistics

Monitoring, Evaluation and Reporting • To develop tools, framework, and procedure of and to carry out monitoring, evaluation and reporting activities for the implementation of the 2008 SNA • It is to be conducted by Pan-African Institutions, RECs, and Member States at the Continent, sub-regional, and national levels • Peer review among countries Countries RECs Monitoring, Evaluation and Reporting Pan-African Inst. African Centre for Statistics

Summary • Importance of the System of National Accounts (SNA) – one of the most important tools of economic analysis and policy making – Systematic application of macroeconomic theory – Portrayal of the whole economic process • Current Status of SNA in African Countries – Limited resources and weak capacity – Not harmonious and inconsistent and Incomplete Coverage – At an early stage of the development of national accounts • Road Map towards Implementation of SNA 2008 – Six activities and – Work together by sharing responsibilities among AGNA African Centre for Statistics

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