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Outsourcing - Competition - and Devaluation of Botswana Pula

This edition of the BIDPA Briefi ng discusses threebroad topics of Outsourcing, Competition within thecar dealership sector and the recent devaluation of thepula.

Research Group
 Micro Economics

  21th May 2012

 Monnane Monnane

  Outsourcing; Exchange rate; Competition



This edition of the BIDPA Briefi ng discusses three broad topics of Outsourcing, Competition within the car dealership sector and the recent devaluation of the pula. On the backdrop of some confusion surrounding an outsourcing relationship between the Gaborone City Council and a local cleaning company, the Briefing discusses the concept of outsourcing and provides a step by step guide to outsourcing. The need to have in place a solid contract management arrangement to avert confl ict is stressed. Government recognizes the need for encouraging competition within all sectors of the economy. As a result, a Draft Competition Policy has recently been presented to parliament. Thus, this edition of the BIDPA Briefing attempts to assess competition within the motor dealership sector in Botswana. Despite data limitations,  the Briefing concludes that indications are that there exist some uncompetitive practices within the motor dealership sector. Lastly, following the devaluation of the pula, and after the dust on the issue has settled, the Briefi ng discusses, albeit briefly, the expected winners and losers from the devaluation of the pula. While the major winner is Government through increased mineral revenues, consumers stand out as major losers.

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