Botswana Merits Inclusion in Food Security Initiative

UNCLAS GABORONE 000948

SIPDIS

STATE FOR AF A/S CARSON FROM AMBASSADOR NOLAN
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E.O. 12958: N/A
TAGS: EAGR EAID PGOV PREL KHIV BC
SUBJECT: Botswana Merits Inclusion in Food Security Initiative


1. Botswana is Africa's most stable democracy and our closest, most
reliable friend in southern Africa. Though Botswana is a
middle-income country, according to the UNDP about half of its
citizens still live on less than two dollars per day. According to
the United Nations Food and Agricultural Organization's 2009 report,
over a quarter of Botswana's citizens lack food security. Botswana
is one of the southern African nations most affected by hunger; the
FAO puts it in "Category 4" for food security, along with Malawi,
Kenya, Congo, Senegal and Sudan. While Botswana receives little
"traditional" donor assistance, it invests its own money
productively and is a star performer when using USG public health
funds. Botswana offers the Food Security Initiative the likelihood
of early success.


2. The GOB is committed to diversifying Botswana's economy
(currently dependent on minerals and tourism),and President Khama
has emphasized agricultural development as an important tool for
poverty reduction and economic growth -- most recently in his
November 13 "State of the Nation" address. In several recent
high-level meetings with U.S. officials, the GOB has asked for our
assistance with agriculture and food security. Embassy Gaborone
strongly supports this request. We note that Botswana's investments
in infrastructure, health, and education and its low corruption rate
mean that even modest U.S. investments in Botswana would go far and
have a real and lasting impact on poverty reduction. In addition,
support for Botswana would be an example of the USG "rewarding
success" in a visible and concrete fashion.

GOB Agriculture Plans, Programs
--------------

3. The GOB's overall strategy for agriculture and food security is
described in its 2002 "National Master Plan in Arable Agriculture
and Dairy Development." The plan sets goals through 2012 to improve
food security at both household and national levels, diversify
agricultural production, increase crop yields and farm productivity,
increase employment opportunities, and conserve scarce
agricultural/land resources for future generations. The GOB has
demonstrated its commitment to agricultural development and food
security through numerous ongoing programs, including:

--ISPAAD: In June 2008, the GOB began its "Integrated Support
Program for Arable Agriculture Development" (ISPAAD) to encourage
farming in arable regions and extend agriculture into shoulder
regions. Through ISPAAD, the government supports farmers by
improving access to seeds, fertilizer, and credit, establishing
agricultural extension centers, and assisting with fencing and
mechanized plowing. To date, the GOB has invested 136 million pula
(19 million USD) on ISPAAD. Over 587,092 acres of land have been
planted under ISPAAD, and 78,000 farmers have been issued with
seeds, totaling 2,227 tons. A yield of over 103,000 tons of cereal
is expected this year.

--Zambezi Agro-commercial Integrated Development Project: The GOB
plans to use this program to develop large-scale commercial farming
in northeast Botswana. Potential activities include aquaculture,
poultry and dairy farming, food oil production, and fruit and
vegetable processing. To support this activity, the GOB is improving
its water infrastructure in the region, including dam projects and a
580 kilometer pipeline extension that will aid with irrigation.

--Young Farmers Fund: Though the parastatal Citizens
Q--Young Farmers Fund: Though the parastatal Citizens
Entrepreneurial Development Agency (CEDA),the GOB has created a
"Young Farmers Fund," which provides subsidized loans and
entrepreneurial training. To date, 251 projects have been funded
totaling more than 97 million pula (14.47 million USD).

-- Livestock Management and Infrastructure Development Project
(LMID): The LMID project supports production of poultry, guinea
fowl, and small stock (sheep and goats) through breeding and feeding
programs, improved access to well water, and development of
cooperative abattoirs. The program is expected to improve food
safety/hygiene and increase rural food security.

--Foot and Mouth Disease: The GOB has invested more than 50 million
pula (7.5 million USD) to combat foot and mouth disease, which is
often introduced from neighboring countries like Zimbabwe. To
protect its vital cattle industry, the GOB has constructed
veterinary fences and instituted checkpoints at strategic locations
along major transport corridors. In order to adequately contain the
disease, the GOB called upon resources from the military and other
ministries to help monitor and restrict movement of meat/animals.

GOB Funding for Agriculture/Rural Development
--------------

4. Botswana's overall budget for fiscal year 2009/10 is 37.92
billion pula (5.66 billion dollars). The government divides its
spending into two categories: the recurrent budget, which includes
routine funding for staff, overheads, and ongoing programs, and the
development budget, which is funding for specific and usually medium
term projects or activities. The Ministry of Agriculture received
913.1 million pula (136.28 million USD) in the recurrent budget and
464.8 million pula (69.37 million USD) in the development budget.
Programs administered by other Ministries also have a major impact
on agriculture and rural development. The Ministry of Local
Government is investing 362.9 million pula (54.16 million USD) on
village infrastructure, water and sewer projects, while the Ministry
of Minerals, Energy, and Water Resources will spend 725.98 million
pula (108.36 million USD) on major rural water projects (including
dams, pipelines and sanitation projects). These projects will
strengthen rural infrastructure, not only improving the lives of
rural dwellers (many of whom rely on subsistence agriculture) but
also increasing access to irrigation in this semi-arid country.


5. We estimate that the Government of Botswana will spend
approximately 6.76 percent of its overall 2009/10 budget on
agricultural programs, including projects administered by both the
Ministry of Agriculture and other ministries/parastatals. This
calculation does not/not include other vital GOB spending on
infrastructure (roads and transport corridors, vocational training
centers, abattoirs) nor does it include the tremendous GOB response
to the AIDS epidemic and overall health spending. We would note
that the GOB spends 1.58 billion pula (235.82 million USD) on the
health sector, 838.8 million pula (125 million USD) of which is
exclusively for HIV/AIDS. This large investment in public health
enables Botswana to maintain a productive labor force despite one of
the world's highest HIV infection rates.

Comment/Action Request
--------------

6. Comment: Embassy Gaborone suggests that Botswana merits inclusion
in the Food Security Initiative. Botswana has requested our help,
and their need is real. Unlike many other developing countries,
Botswana receives little "traditional" donor assistance, but the
country spends its own resources well, investing in health,
infrastructure, education, agriculture, and other public goods. Our
experience with PEPFAR demonstrates that Botswana will be a true
partner, more than matching any USG assistance with its own efforts
and resources, and will use our aid effectively. The Administration
has noted publicly that we must reward successes in Africa. We have
the opportunity in Botswana to "reward" a true partner with
agricultural assistance that literally could be a game-changer for a
country anxious to diversify from its heavy dependence on diamonds,
estimated to run out in about 15 years. This "reward" will not only
demonstrate our support for Botswana's political and economic
policies, but will also help improve the lives of up to one million
Batswana who remain poor and hungry in this "middle income" country.
End comment.

HAMILTON