The African Development Bank has committed $331 million to Lesotho, focusing on key sectors like energy, agriculture, digitalization, and infrastructure.
This investment will span from 2025 to 2030 to enhance the country’s economic growth and competitiveness.
Meeting with King Letsie III
During his official visit to Lesotho, Dr. Akinwumi Adesina, President of the African Development Bank, met with King Letsie III.
The discussion centered on strengthening the development partnership and expanding the Bank’s investments in Lesotho.
The King expressed his satisfaction with the visit and emphasized the need for policies that attract the private sector, especially in healthcare, agriculture, and production.
Adesina praised King Letsie III for his leadership as the African Union Nutrition Champion since 2014. He commended the King’s efforts to improve nutrition and food security for women, children, and adolescents.
He also acknowledged the King’s leadership in the King Letsie III Just Energy Transition Fund, which aims to generate approximately 200 MW of power through private sector investments.
Bank’s Achievements in Lesotho
Since Lesotho joined the African Development Bank in 1973, the Bank has implemented 87 projects worth a total of $429 million.
Currently, there are eight ongoing projects valued at $60 million. The Bank aims to significantly increase its investment commitments in the coming years.
The Bank’s investment strategy for Lesotho focuses on the following key areas:
- Agricultural Development: Enhancing food security and improving rural livelihoods.
- Digital Transformation: Expanding broadband access for digital financial inclusion and government service digitalization.
- Energy Infrastructure: Developing electricity transmission lines to connect Lesotho with South Africa.
- Climate Resilience: Addressing environmental challenges and promoting sustainable development.
- Water Resource Management: Building on the success of the Lesotho Lowland Rural Water Supply Project.
The Bank will work on enhancing trade competitiveness through improved export standards. Additionally, it will provide public financial management and debt management support.
The Lesotho Rural Water Supply and Sanitation Project, led by the African Development Bank, has achieved significant results, including the installation of 190 kilometers of pipeline and 166 public water points, benefitting approximately 30,000 people.
The Bank plans to mobilize $260 million for an integrated water transfer project that will supply 308 million cubic meters of water for domestic, agricultural, and industrial use via a 700 km pipeline. This project is expected to generate up to 22 MW of hydropower.
Lesotho’s Energy Future
The Minister of Finance and Development Planning, Retselisitsoe Matlanyane, announced that Lesotho’s energy supply will exceed domestic demand by 2026. The country plans to build a substation to export surplus power to South Africa.
The Minister emphasized the importance of investing in primary healthcare and nutrition to combat stunting in various regions of Lesotho.
Dr. Adesina’s Upcoming Meetings
Dr. Adesina is scheduled to meet with Prime Minister Samuel Ntsokoane Matekane to discuss further steps for Lesotho’s development.
The Bank’s delegation includes key officials, such as Dr. Nomfundo X. Ngwenya (Executive Director for Lesotho), Moono Mupotola (Deputy Director General for Southern Africa), and Dr. Victor Oladokun (Senior Advisor to the President for Communication and Stakeholder Engagement).