MEFMI delivers Technical Assistance Mission to the Central Bank of Lesotho on validation of Foreign Private Capital Survey Data

MEFMI conducted a technical assistance mission for the Central Bank of Lesotho on validation of Foreign Private Capital Survey (FPC) data for their Balance of Payments (BOP) and International Investment Position (IIP) statistics. The mission was conducted from 9 to 13 December 2019 in Maseru, and was attended by 6 officials from the International Economics Division of the Research Department of the Bank. In terms of gender participation, there were two (2) males and four (4) females, translating into 33% and 67% male and female representation, respectively.

The main objective of the mission was to carry out an analysis of the FPC survey data for comprehensiveness and accuracy before formal adoption into the Lesotho BOP and IIP statistics. The mission was also expected to identify any other existing data gaps in the BOP/IIP and recommend areas for improvement. The mission followed a three-pronged approach to deliver its work – methodological review, training, and data validation.

As a key output, the participants were equipped with knowledge and skills to validate FPC survey returns against accompanying financial statements of the responding enterprises, and estimation techniques in the absence of responses. It is expected that the officials will apply these techniques to make backward estimates for missing data, as well as apply them to subsequent surveys, therefore resulting into a consistent and robust time series dataset.

The increasing importance of foreign private capital flows and the need to understand their impact highlights the compelling need for reliable, accurate and consistent statistics in line with international standards.  However, monitoring these flows effectively by collecting high-quality data is not an end in itself.  The data must be used for analysis, and the results for formulating and implementing strategies for macroeconomic stability, private sector development, and investment promotion.  Cognisant of their importance, MEFMI continues to provide technical assistance to member countries to support them produce reliable data on foreign private capital flows to their economies.