VZCZCXRO1852
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHOR #1078/01 3441159
ZNR UUUUU ZZH
R 091159Z DEC 08
FM AMEMBASSY GABORONE
TO RUEHC/SECSTATE WASHDC 5425
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUCPDOC/USDOC WASHDC
RUEAIIA/CIA WASHDC

UNCLAS SECTION 01 OF 02 GABORONE 001078 
 
SIPDIS 
 
STATE FOR AF/S, EEB, INR/B 
STATE PLEASE PASS USTR (WJACKSON) 
 
E.O. 12958: N/A 
TAGS: ETRD ECON EAID SCUL BC
SUBJECT: Ambassador's Courtesy Call on Trade Minister 
 
¶1.  Ambassador Nolan paid a courtesy call on Botswana's Minister of 
Trade and Industry Neo Moroka November 28 at the Minister's Office. 
Moroka thanked the U.S. for providing development assistance to 
Botswana since independence, and noted that both he and many of his 
staff had benefitted from scholarship programs which enabled them to 
study in the United States.  Minister Moroka praised the Africa 
Growth and Opportunity Act (AGOA), calling it "the most significant 
trade preference program around."  He said that AGOA has helped 
Botswana begin to diversify its economy, but acknowledged that the 
country still needed to do more to promote private sector growth and 
diversification, especially in the current economic climate in which 
demand for diamonds is lower.  The Minister also praised the 
USAID-funded Southern Africa Global Competitiveness Hub and said 
that the Hub has played a significant role in assisting Botswana's 
private sector, especially through trade capacity building programs. 
 Moroka commented that free trade negotiations between the U.S. and 
the Southern Africa Customs Union (SACU) were suspended in 2006 
because "the USG wanted too much reciprocity and we needed to 
protect certain industry."  However, he also said that in July 2008 
the USG and SACU signed an agreement to work instead on a Trade 
Investment and Development Cooperation Agreement (TIDCA) as an 
interim step toward freer trade between the U.S. and the region, and 
Minister Moroka offered that he was "quite positive" about the 
prospects" for the TIDCA. 
 
Private Sector Focus 
-------------------- 
¶2.  The Minister explained that President Khama is determined to 
grow Botswana's private sector and make it the engine for the 
country's economic growth.  He acknowledged that currently 
Botswana's economy is "government led," but noted that the 
government's National Development Plan 10 which is now in draft form 
explicitly calls for the encouragement of private sector led 
economic growth.  Minister Moroka said that Botswana is already 
using its diamond industry as a driver for diversification.  With 
the opening of the Diamond Trading Center earlier this year, 
aggregation, cutting, and polishing of stones is now taking place in 
the country, and the government hopes that this will spill over into 
related industries including jewelry design/production and even 
glass manufacturing.  The Minister also explained that though 
Botswana has a large cattle industry and exports beef (primarily to 
Europe), the country is not currently involved in leather 
production.  He said that if the cattle industry changes its 
branding technique to avoid spoiling the hides, there is real 
potential for establishing a leather industry in Botswana.  The 
government is also planning to encourage ostrich ranching and export 
of high-end ostrich leather goods. 
 
Power, Water Limit Industry 
------------------------------- 
¶3.  The Ambassador praised Botswana's investments in capital 
projects and infrastructure.  He asked about the expansion of the 
Morupule power station and planned Mmamabula Energy Project, both of 
which could transform Botswana into a net electricity exporter. 
Minister Moroka explained that energy drives all development, and 
until Botswana has a reliable source of power, it will be very 
difficult to expand its economy or attract new foreign investment. 
He noted that in addition to power, water scarcity limits growth. 
The Minister asserted that once Botswana has steady power and a 
national master plan for water usage, the government hopes to 
attract agro-industry projects. 
 
 
Potential for Service-Led Economy 
--------------------------------- 
¶4.  Botswana hopes to take advantage of its strategic location "at 
the epicenter of the SADC region" and become a center for tourism, 
medicine, and regional transportation, according to Minister Moroka. 
 He noted that President Khama has challenged his Transportation 
Minister to make Botswana a "transportation hub" within SADC. 
Though Botswana is already known for international safari tourism, 
the Minister advocates for the construction of a 5-star hotel in 
Gaborone and airport upgrades (including more international routes) 
to serve "the billionaires coming to trade at Gaborone's diamond 
hub."  He was excited about projects to upgrade Botswana's medical 
facilities and training, and explained that the government wants 
Botswana to become a center for specialist medical attention.  The 
GOB hopes that in a few years its citizens will no longer need to 
travel to South Africa for specialized medical care and that 
Botswana will actually attract medical tourists.  The Ambassador 
praised the partnership between the University of Pennsylvania and 
University of Botswana medical schools as a great initiative that 
will help the GOB improve Botswana's medical system.  He noted that 
over 100 UPenn medical students are now doing rotations in Botswana 
each year as part of their training.  The Minister was glad to hear 
about this important private initiative, and said that as Botswana's 
health system improves, more and more Batswana medical students who 
go abroad for training return to Botswana to practice. 
 
GABORONE 00001078  002 OF 002 
 
 
 
Biographical Note 
----------------- 
¶5.  Neo Moroka was elected as Member of Parliament for Kgalagadi 
South constituency (Botswana Democratic Party) in 2004 and was then 
appointed Minister of Trade and Industry by former President Festus 
Mogae.  He retained his portfolio when President Khama took power in 
April 2008.  During his meeting with the Ambassador, Minister Moroka 
repeatedly described himself as "more of a businessman than a 
politician" and he highlighted his background as the former head of 
the Botswana Confederation of Commerce Industry and Manpower 
(BOCCIM) and work as the Managing Director for British Petroleum 
(BP) in both Botswana and Zambia, as well as his experience in 
banking and with Debswana.  Moroka told us he was educated in the 
United States in the 1970s, where he attended Texas A&M and New 
Mexico State universities.  His academic training was in wildlife 
biology.  He is married with three adult sons and mentioned that he 
owns several large cattle ranches. 
 
 
DROUIN