UNDP Supports Botswana’s Advancements in evidence-based planning: Computable General Equilibrium (CGE) Modelling
March 6, 2026
What happens to the economy if we act - or if we do not act?
Botswana has reached an important moment in strengthening the analytical foundations that underpin national planning. During this week’s policy dialogue, held under the framework of the Botswana Computable General Equilibrium (CGE) modelling process, UNDP reaffirmed its commitment to supporting the country’s journey toward evidence-driven development.
Speaking at the event, UNDP underscored the leadership of the National Planning Commission and the Office of the President in championing a planning culture rooted in data, strategic foresight, and sound economic analysis. As Botswana advances Vision 2036, the Botswana Economic Transformation Programme (BETP), and the implementation of NDP 12, the need for tools that can simulate alternative futures and guide complex policy choices has never been greater.
A well-calibrated CGE model provides exactly that. It enables policymakers to understand the economy-wide impacts of reforms before decisions are made, anticipate effects of global shocks, compare trade-offs across sectors and population groups, and allocate resources more effectively within a fiscally constrained environment. In short, it helps answer the critical question: What happens to the economy if we act—or if we do not act?
For UNDP, this initiative represents an investment in Botswana’s long-term prosperity and resilience. Evidence-based planning is essential to achieving the Sustainable Development Goals, promoting inclusive growth, and supporting a more diversified, knowledge-driven economy. The CGE model will play a transformative role in at least three priority areas:
Economic diversification and structural transformation:
The model supports informed decisions on emerging priority sectors, from renewable energy and digital services to agriculture, creative industries, and advanced manufacturing. It quantifies how different industrial policies may affect productivity, employment, and competitiveness.
Climate resilience and just transition:
As Botswana strengthens its climate ambition, the CGE framework will help evaluate low‑carbon pathways, adaptation strategies, and the distributional effects of climate policies—ensuring that communities are not left behind.
Inclusion and equity:
Given national goals to reduce inequality, the model allows analysis of how policies affect households across income levels, regions, and gender, making it a powerful tool for more equitable development outcomes.
UNDP’s support for the CGE modelling process focuses on three pillars: building national capacity so that the model is fully owned and sustained domestically, embedding CGE results into real policy processes—including budgeting and sector planning—and ensuring modelling outputs are translated into clear, actionable insights for decision-makers.
The policy dialogue held today represents a crucial step toward ensuring that CGE modelling remains relevant, participatory, and aligned with Botswana’s national priorities. By bringing together policymakers, experts, and partners, the dialogue ensures the model responds to the questions that matter most for the country’s future.
UNDP remains committed to walking this journey with the Government and people of Botswana, strengthening the role of robust evidence in guiding the nation toward a future that is prosperous, inclusive, resilient, and sustainable—on the path to 2036 and beyond.