Amb. Zoellick Visits Botswana on Final Day of Africa Trip

Talks trade, visits HIV/AIDS hospital

Gaborone (Botswana) -- The United States trade representative, Ambassador Robert B. Zoellick, spent the final day of his historic journey to Africa meeting in Botswana with private sector entrepreneurs, touring an HIV/AIDS hospital, and holding talks with Botswana's minister of trade, industry, wildlife and tourism and with that country's president, Festus G. Mogae.

In an early morning February 20 round table at the residence of U.S. Ambassador John E. Lange, Zoellick listened to and interacted with a broad array of local business entrepreneurs and executives, discussing how to expand business and trade opportunities in Botswana.

One of the executives called the U.S. African Growth and Opportunity Act (AGOA) -- which allows the duty-free import of some 6,000 products from eligible African nations into the United States -- a real opportunity for Botswana. But he noted that Botswana suffers from a range of adverse factors, including a small market, a private sector that is not highly skilled, and a weak currency, which makes the import of raw materials needed in manufacturing very expensive. "If those issues can be addressed, then I would see the opportunity for Botswana to participate more in the international economy," he told the group.

Responding, Zoellick agreed that the small size of Botswana's market can be a hindering factor, but added, "One way to address that is through integration ... through the Southern African Customs Union (SACU), which would help small economies like Botswana build a long-term economic framework that would emphasize investment opportunities and integrate Botswana into a larger business network."

Botswana's success as a multiparty democracy, Zoellick told the group, would work well as a model for many other parts of Africa, and he reminded his audience of the importance of local savings in helping to spur the nation's economy. Local savings by the citizens of Botswana, he told the group, will do a lot to fuel the economy -- just like foreign direct investment.

Ambassador Lange offered his perspective: "I see so many ways in which this nation's economy should be a leader and be a diversified economy in this region because of its strong infrastructure [and] highly educated populace. ... One of my frustrations," he acknowledged, "is that we have not been able to attract more U.S. investors here, we have not been able to attract higher levels of U.S.-Botswana trade." Lange has served as the United States ambassador to Botswana since December 1999.

Following the round table, Zoellick toured the Princess Marina HIV/AIDS hospital in Gaborone and held a second round table discussion with the facility's medical staff.

While there, Zoellick was briefed on The African Comprehensive HIV/AIDS Partnership, which is a joint effort sponsored by the Republic of Botswana, the Bill and Melinda Gates Foundation, Merck and Company Inc., and the Merck Company Foundation to significantly advance HIV/AIDS prevention, health care access, patient management, and the treatment of HIV/AIDS in Botswana.

The Gates Foundation and Merck Company Foundation will each dedicate $50 million over five years to help Botswana strengthen its primary health care system, and the U.S. government has provided more than $12 million in one year for HIV/AIDS programs in Botswana.

Merck is also donating anti-retroviral medicines (Crixivan and Stocrin) for appropriate treatment programs.

Following his visit to Princess Marina Hospital, Zoellick was honored at a luncheon hosted by Pelonomi Venson, Botswana's minister of trade, industry, wildlife and tourism, before holding a round of talks with President Mogae in the president's Cabinet room.

After emerging from those talks, Zoellick spoke to reporters.

Zoellick, the first U.S. trade representative to officially visit sub-Saharan Africa, praised Botswana, saying that his perceptions of the country as one that enjoys a multiparty democracy and an extremely well-run economy were "very well reinforced" by his visit.

Asked to describe his talks with the president, Zoellick said they were "excellent. He [President Mogae] is a person held in high esteem in Washington."

On his talks with Minister Venson, Zoellick said, "We talked about working on AGOA, the African Growth and Opportunity Act. We talked about our work together in the World Trade Organization [WTO] and ... about the possibility of exploring further trade arrangements, perhaps through a free trade agreement with the Southern African Customs Union (SECU)."

Asked if Botswana can benefit from AGOA, Zoellick said that Botswana can "definitely" benefit from the historic legislation. "I met some private businesspeople this morning, and some of them in the apparel and textile area are already looking to additional investment and additional jobs based on it," he added.

Zoellick cautioned, however, that textiles should not be the sole focus of Botswana's trade with the United States. One of the things he and President Mogae talked about, he said, were other categories of products that can be exported duty-free to the United States under AGOA -- such as food or beef -- where there is a possibility to expand the trade relationship between the two countries.

"What all of this points to is not only trade but linkage to investment," he told reporters, "because if we can draw investment from around the world to Botswana, that will also help in terms of creating jobs here."

Additionally, Zoellick remarked on Botswana's worldwide reputation for wildlife and natural resources and suggested that eco-tourism presents another economic opportunity for Botswana.

On HIV/AIDS, Zoellick recalled his trip to the Princess Marina Hospital. "One of the reasons I wanted to see it is, obviously, this is a tragedy not only in human but also in social and economic proportions. As I said to the president, it really takes leadership from the top to help a society come to grips with this, and this is another area in which I think, Botswana has played a leadership role."

Botswana was the last stop on Ambassador Zoellick's February 12-21 three-nation Africa tour, which also included Kenya and South Africa.

Zoellick, the 13th U.S. trade representative, is a member of President Bush's Cabinet and holds the rank of ambassador.