Botswana's President Festus Mogae says all southern Africa is confronted with a host of challenges, including poverty, famine, unemployment and vulnerability of economies to drought, the HIV/AIDS pandemic and a desire for further access to global markets.

Mogae was addressing both houses of Lesotho's Parliament after his arrival in Maseru on Wednesday for a three-day state visit.

"The war against HIV/AIDS can be won if we fight side by side at the national and regional levels to reduce the rate of infection and mitigate effects of the pandemic," he said.

Given the small size of the economies of the southern African states, Mogae said it was imperative the states worked together as members of the newly structured Southern African Customs Union (SACU) to ensure better access to global markets.

"The promotion of export-led economic growth and encouragement of competitiveness among all southern African countries will undoubtedly prove beneficial," he added.

Mogae said Lesotho stands as a beacon of what can and should be done to bring peace and democracy in Africa.

"Lesotho may be small in terms of its size, but its people have always had big ideas and big hearts. This is why the entire region elected Lesotho to the chair of Southern African Development Community (SADC) organ on politics, defence and security and was also elected to represent us together with Mozambique and South Africa at the newly established Peace and Security Council of the African Union. In carrying out the mandate, Lesotho can be assured of the full support and cooperation of Botswana and the SADC," he said.

Mogae said Lesotho and Botswana were co-operating in such fields as agriculture, meat inspection, waste management, defence, health and water management.

"We also collaborated in the recent establishment of the Lesotho anti-corruption unit. It is my belief that this unit will contribute to ensuring that Lesotho becomes a model of sound and transparent economic management," he added.

Mogae said his country was happy it was able to assist and contribute in combating corruption since it was a continuous process that needed inter-state cooperation.

Mogae indicated that Lesotho and Botswana have always supported one another in times of need, hence Botswana did not hesitate to intervene when Lesotho was experiencing political upheavals in the late 1990s.

"We are grateful that our modest efforts contributed to the restoration and consolidation of peace, democracy and the rule of law which are essential for socio-economic development," he concluded.

During his three-day state visit at the invitation of King Letsie III of Lesotho, Mogae and his entourage will have an audience with the king, meet the prime minister and meet HIV/Aids support groups.

Mogae will also address a rally at the Setsoto National Stadium in Maseru and visit the Katse Dam of the giant Lesotho Highlands Water Project. He leaves Lesotho for Botswana on Saturday - Sapa.