This article argues that efforts by the Government of Botswana to embark on privatisation of some parastatals as well as contracting out the provision of certain services with the main intention of enhancing productivity and strengthening the private sector will not have a negative effect on the strength and nature of the existing strong developmental state. It is argued that the cautious and pragmatic approach adopted by the government, coupled with the fact that privatisation in Botswana is embraced voluntarily (that is not imposed on the country by either the World Bank or the International Monetary Fund (IMF) as a condition for financial assistance), hiving off parastatals to the private sector will not result in the weakening and ultimate demise of the state as it has happened in some countries within Sub Saharan Africa. Copyright # 2008 John Wiley & Sons, Ltd.