The African Development Bank Group has earmarked $331 million for investment in Lesotho from 2025 to 2030, focusing on quality infrastructure, capacity building, energy development, regional integration, and institutional strengthening.
King Letsie III and Dr Akinwumi Adesina,the President of the African Development Bank, met in Lesotho’s capital, Maseru, to discuss a transformative partnership designed to accelerate economic growth in the country.
Their discussions focused on infrastructure and human capacity development, health, agriculture, tourism, manufacturing, and private sector investments to unleash Lesotho’s potential as an economic giant.
Speaking about the partnership, Letsie III said, “we will hasten to ensure that the right policies and incentives are in place to attract participation from the private sector, particularly in sectors such as health, agriculture and manufacturing.”
Adesina said the aid architecture has completely changed. “We discussed emerging global developments and how to adapt, as well as what it will take to attract private investment. We will support the Kingdom of Lesotho’s institutional, technical and human capacity, as well as help design bankable projects that attract investment.”
According to Adesina, Lesotho’s abundant hydropower and other renewable energy sources such as wind and solar, has the potential to generate more than enough electricity for domestic consumption and surplus capacity for export to neighbouring countries.
The Bank is committed to supporting a 700-km water transfer project that will supply Lesotho and the region with 308 million cubic meters of water for domestic, agricultural, and industrial use.
The Bank is expected to mobilize approximately $260 million for the project.
Adesina also said “we will work on a $2.3 billion multi-partner integrated water transfer project that includes energy components, from agro-value chains and trade facilitation in Lesotho, and from Lesotho through South Africa to Botswana.”
Dr Rets’elisitsoe Matlanyane, the Minister for Finance and Development Planning in Lesotho,said plans are to build a substation to export excess power production to South Africa as its energy supply will exceed domestic demand by the end of 2026.
The Kingdom also aims to meet its Paris Agreement commitments well before 2050 as a fully carbon-neutral power producer.
Picture: AFDB