DTS in South Africa IRDTS 2008 Addis Ababa, Ethiopia 27-30 May 2008

1. DTS in South Africa IRDTS 2008Addis Ababa, Ethiopia27-30 May 2008 Presented by Joyce Essel-Mensah

2. Structure of Stats SA

3. Overview – DTS • Distributive trade statistics in South Africa are published through sample surveys organized monthly, quarterly, annually and periodically. • The surveys are based on samples of private enterprises operating in the formal non-agricultural business sector of the economy, excluding financial intermediation, insurance and government institutions. • The quarterly and annual surveys are conducted as part on economy wide surveys. • There are no DTIs published as yet.

4. Institutional arrangements • All Stats SA publications which include the DTS are conducted in accordance with the Statistics Act 6 of 1999 and subsequent revisions

5. Main users National Accounts Division of Stats SA -Require production and sales statistics of all industries monthly in calculating quarterly GDP South African Reserve Bank - requires short term production, trade and building statistics Government- Policy makers Research and/or Educational Institutions - Universities, Human Sciences Research Council, The Bureau for Economic Research and the National Research Foundation Industrial Federations- SAFCEC, SEIFCA, BIFSA International Organisations - World Bank, International Statistical Offices and the International Monetary Fund (IMF) Local and International Media – Reuters, SAFM, Newspapers Labour unions Non Governmental Organisations General Public - Businesses

6. User needs • User needs are determined by arranging advisory committee meetings with internal and external users • From 2007, inputs by users are also obtained via Stats SA’s website

7. Surveys • Monthly: • Wholesale Trade • Retail Trade • Motor Trade • Tourist accommodation, • Food and Beverages • Quarterly Financial Statistics Survey (QFS) • Annual Financial Statistics Survey (AFS) • Large Sample Surveys (LSS)

8. Data sources • Direct collection - depend on respondents to truthfully and accurately report on the enterprise • Financial manager or accountant or an individual with a strong background in accounting completes the questionnaire • Administrative sources

9. Data compilation methods • Survey frame • Sampling methodology • Periodicity (reference period)

10. Data compilation methods (cont) • Survey frame • Samples drawn from Business Sampling Frame (BSF) - snapshot of Stats SA’s statistical Business Register (BR), created mainly from the Value Added Tax (VAT) database supported by Income Tax (IT), UIF, etc • Units with annual turnover of R300 000 or more in BSF • Used as a source for updating the BR and in profiling and delineation • BR division responsible for creating the BSF and the survey frames • Sampling specialists in the Methodology and Standards division draw samples

11. Data compilation methods (cont) • Sampling methodology • Sample comprises of two parts: • Fully enumeration of all large units • Samples drawn from smaller units • Samples are drawn at 4 digit SIC level according to Neyman’s optimum allocation with special conditions. • Unit of sampling is the Enterprise. All establishments in selected enterprises are included in the sample • Sample sizes range from: • 850 (Motor trade) to 2 500 (Retail) for monthly • about 12 000 for whole economy annually • between 5 000 and 18 000 depending on sector

12. Data compilation methods (cont) • Periodicity (reference period) • One calendar month published 7 weeks after reference month • QFS – Calendar quarters published 3 months after reference month • AFS – Financial years of enterprises ending on any date between 1 July of one year and 30 June of the following year published 14 months after reference month • LSS – Financial years of enterprises ending on any date between 1 July of one year and 30 June of the following year • financials published 16 months after reference month • products published 24 – 30 months after reference month

13. Data collection methods • Questionnaires • Questionnaires are distributed by post, email, fax one period in advance • Data collection is through return post, fax, email, telephonically and visits • Follow ups are also done through fax, email, telephonically and visits • Response rates • A minimum of 80% (normally around 85%) for monthly surveys with minimum 90% of fully enumerated units (100% for critical units).

14. Main data items - Monthly • Wholesale trade survey • Total wholesale trade sales • Total income from trade on behalf of and/or on account of others (contract or fee basis) • Retail trade survey • Total retail trade sales • Motor trade survey • Total motor trade sales • Motor trade sales by type of activity • New motor vehicle sales • Used motor vehicle sales • Income from service department or workshop • Direct sales of automotive fuels, oils and additives • Direct sales of spares and accessories • Convenience store income • Other direct sales and other trading income

15. Main data items - Others • See attached file and questionnaires

16. Data processing and estimation methods • Processing of questionnaires • Questionnaires for monthly surveys are captured and edited in one step • Questionnaires for annual and periodic surveys are edited and then captured • Estimation methods • Imputation is done for missing large units and weights adjusted for small units. • Overall estimates are derived by adding the two • Estimates are published at both current and constant prices (except motor trade) and also seasonally adjusted (except retail trade) • Estimates are published for actual values as well as growth rates

17. Data dissemination methods • Data is disseminated • through hard copy publications • electronic publications through our website www.statssa.gov.za • time series in various formats also through our website and via CDs or email on request

18. Problems and difficulties encountered • In conducting the economic surveys • Obtaining required response rates – anti-government sentiments results in refusals. • Locating enterprises as administrative information on the Business Register is not adequate and reliable for all sampled enterprises • Differences in accounting standards and practices by enterprises can also lead to some inconsistencies in the data used to compile the estimates. While much of the accounting process is subject to standards, there remains a great deal of flexibility available to businesses in the policies and practices they adopt

19. Problems and difficulties (cont) • In use of administrative data sources • Irregular updates of source data • Errors in source data • In maintenance and improvement of the statistical business register • Due to the high volume of units on the register, it is impossible to pay attention to all units. As such, more attention is paid to large and complex units at the expense of the smaller units • Survey areas provide feedback to the Business Register based on additional information obtained about reporting enterprises but can sometime be contradictory

20. Problems and difficulties (cont) • In use of statistical business register • Duplication: Duplications of enterprises regarding legal name and income tax numbers • Turnover: Instances occur where the same enterprise is allocated to different size groups in consecutive samples, due to inconsistencies in the measure of size (turnover) • Classifications: • Inadequate detail classification lead to inability to publish required detailed information or provincial breakdowns • Enterprise is allocated different a SIC in consecutive samples