Festus Mogae, the former president of Botswana, has won the second annual Ibrahim Prize for Achievement in African Leadership to recognize his record of good governance.

Kofi Annan, the chairman of the prize committee and former United Nations secretary general, said Mogae won the $5-million US prize for outstanding leadership that had ensured Botswana's ongoing stability and prosperity.

"The prize committee believes that good governance requires an environment conducive to peace, security and development, based on the rule of law and respect for human rights. Botswana has had to address the challenge of advancing each in a balanced way," Annan said.

"President Mogae's outstanding leadership has ensured Botswana's continued stability and prosperity in the face of an HIV/AIDS pandemic which threatened the future of his country and people," Annan said.

Mogae studied economics in the United Kingdom and eventually returned to this country where he worked for the International Monetary Fund and the Bank of Botswana.

He was vice-president for six years before he became the leader of the country in 1998. He stepped down this year.

Former president of Mozambique Joaquim Chissano was the inaugural winner of Ibrahim Prize.

The prize includes $5 million over 10 years, followed by $200,000 a year for life. It could also include another $200,000 a year over 10 years to support Mogae's "good causes."

The Ibrahim Prize was founded by British cellphone tycoon Mo Ibrahim, who was originally from Sudan. The award was introduced as a way to encourage future generations to exercise good governance in Africa.

But some critics have accused Ibrahim of wasting his money trying to bribe African leaders into behaving themselves.