GABORONE, Nov 6, 2007 (AFP) - Botswana's President Festus Mogae delivered a stout defence of his record in his last state of the nation address, saying the country which he once warned could be wiped out by AIDS was now a land of hope.

In a late-night address to parliament Monday, Mogae said he had ensured the diamond-rich southern African nation -- one of the wealthiest on the continent -- had kept within its budget during his decade in charge and was now reaping the benefits.

"Prudent, transparent and honest use of national resources for your benefits have been my guiding principle and code of conduct," said Mogae who is to stand down in March of next year.

"I have ensured that our nation does not live beyond its means. Let me also assure you that I will not leave you and our children groaning under the yoke of intolerable debt and despair.

"As sure as the merry-maker must account for his excesses with a splitting hangover the morning after, even harsher punishment awaits a nation that spends unwisely in pursuit of immediate gratification rather than sustainable development."

The AIDS pandemic which has swept across southern Africa has exacted a particularly harsh toll in Botswana during Mogae's term in office, leading him to warn in 2001 that "we are threatened with extinction".

But the president said the death rate from AIDS was now on the decrease while acknowledging that huge challenges still lay ahead.

"We have made progress in reducing mother to child transmission from 40 per cent to six per cent," he said.

"The number of home based care patients also reduced from 12,000 to 4,000, with over 98 per cent of pregnant women tested for HIV, and treating over 9000 people out of the estimated 100 000 people."

Around 270,000 of Botswana's two million population are living with HIV but after embarking on a huge programme to provide sufferers with anti-retroviral drugs, only 8.5 percent of patients have died in the last five years.

Mogae's forecast for the future was markedly more upbeat than his previous projections, telling parliament: "We can say with pride and confidence that our country is today a vibrant, competitive nation of opportunity.

"Whatever our challenges, and we have many, ours is a land of hope and promise," he added.

Mogae, who has described himself as Botswana's 'CEO', told the ruling party in July that he would stand down next March when he will hand over to Vice President Seretse Khama Ian Khama ahead of a general election in October 2009.

He came to power in 1998 in sucession to Sir Ketumile Masire and was re-elected after his party triumphed over a divided opposition at the last elections in October 2004.

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