It is also the world's largest producer of diamonds; the trade has transformed it into a middle-income nation.

Botswana protects some of Africa's largest areas of wilderness. The country is sparsely populated, because it is so dry. The Kalahari desert, home to the dwindling group of Bushman hunter gatherers, makes up much of the territory and most areas are too arid to sustain any agriculture other than cattle.

OVERVIEW

In the late 1800s Britain formed the protectorate of Bechuanaland, preventing territorial encroachment of Boers from the Transvaal or German expansion from South West Africa. In 1966 Bechuanaland became independent as Botswana.

Botswana provided a haven for refugees and anti-apartheid activists from South Africa in the 1970s and 1980s, but had to tread carefully because of its economic dependence on the white-ruled neighbour, and because of South Africa's military might.

More recently, Botswana has experienced an influx of illegal immigrants seeking respite from the economic crisis in neighbouring Zimbabwe.

Botswana has become a victim of its own economic success as foreign investment has lead to better transport links which in turn have aided the spread of HIV-Aids. The disease has left many thousands of children orphaned and has dramatically reduced the national life expectancy rate.

According to the United Nations programme on Aids, more than one in three adults in Botswana are infected with HIV or have developed Aids. The country has one of Africa's most-advanced treatment programmes; anti-retroviral drugs are readily available.

Botswana is striving to reduce its economic dependence on diamonds. Safari-based tourism - tightly-controlled and often upmarket - is an important revenue earner.

FACTS

• Population: 1.8 million (UN, 2005)
• Capital: Gaborone
• Area: 581,730 sq km (224,607 sq miles)
• Major languages: English (official), Setswana
• Major religions: Christianity, indigenous beliefs
• Life expectancy: 36 years (men), 37 years (women) (UN)
• Monetary unit: 1 Pula = 100 thebe
• Main exports: Diamonds, copper, nickel, beef
• GNI per capita: US $3,530 (World Bank, 2005)
• Internet domain: .bw
• International dialling code: +267

LEADERS

President: Festus Mogae

Festus Mogae's party scored a landslide victory in the October 2004 elections, winning a new five-year mandate to rule.

President Mogae won a second term in 2004

On being sworn in, Mr Mogae promised to tackle poverty and unemployment. He also pledged to tackle the spread of HIV-Aids; he has said that he aims to achieve an Aids-free Botswana by 2016.

Mr Mogae's Botswana Democratic Party has governed the country since its independence in 1966. Mr Mogae succeeded former president Quett Masire when he stepped down in 1998.

Festus Mogae was born in 1939 and trained as an economist at Oxford before working in senior government posts.

He served as executive director for Anglophone Africa at the IMF and was governor of the Bank of Botswana from 1980 to 1981. In 1992 he was appointed vice-president.

Limited by the constitution to 10 years in office, Mr Mogae says he will step down in 2008, ahead of the next general elections.