In a landmark move to bolster Lesotho’s economic growth and regional competitiveness, the African Development Bank Group (AfDB) has announced a $331 million investment under its Country Strategy Paper (CSP) for 2025–2030. The investment aims to drive development in energy, agriculture, healthcare, digital infrastructure, and public financial management.
The announcement came during the historic first official visit to Lesotho by an AfDB President, Dr. Akinwumi Adesina, who met with His Majesty King Letsie III and senior government leaders to deepen development partnerships.
A Vision for Shared Prosperity
King Letsie III welcomed the visit as a powerful signal of the Bank’s commitment to Lesotho’s progress:
“We will ensure policies and incentives are in place to accommodate and attract the private sector, especially in healthcare, agriculture, and manufacturing,” said the King, praising Dr. Adesina’s dynamic leadership.
Dr. Adesina, in turn, lauded the King’s role as African Union Nutrition Champion, acknowledging his unwavering advocacy for nutrition, food security, and youth development.
Strategic Investments for Sustainable Impact
Dr. Adesina revealed that the $331 million investment plan will focus on seven strategic areas:
Energy infrastructure, including transmission lines linking Lesotho to South Africa
Agricultural development to boost food security and rural livelihoods
Climate resilience and environmental sustainability initiatives
Digital transformation, focusing on broadband access and e-governance
Water resource management, building on the success of the Lesotho Lowland Rural Water Supply Project
Public financial and debt management capacity building
Trade competitiveness and export standard improvements
Dr. Adesina reaffirmed AfDB’s commitment to private sector-led growth:
“With global donor support declining, Africa must pivot towards engaging the private sector. Every challenge is an investor’s opportunity. Capital, like water, flows where it is welcomed.”
A Record of Support and Future Commitments
Since Lesotho joined the AfDB in 1973, the Bank has implemented 87 projects worth $429 million. Currently, eight active projects valued at $60 million are underway.
Dr. Adesina also confirmed that AfDB will prioritise primary healthcare investments, responding to Lesotho’s call to strengthen rural health services.
“We will design an integrated project touching energy, agro-value chains, healthcare, and a transformative water transfer initiative,” said Adesina.
Transforming Water Access Across Southern Africa
A major highlight of the visit was the Bank’s support for a proposed $2.3 billion water transfer project from Lesotho to South Africa and Botswana. This 700-kilometre pipeline will:
Supply 308 million cubic metres of water for domestic, agricultural, and industrial use
Generate 22 megawatts of hydropower
Create long-term employment and cross-border trade opportunities
AfDB is expected to mobilise $260 million to support the initiative.
Lesotho’s Push for Regional Integration
Finance Minister Dr. Rets’elisitsoe Matlanyane confirmed Lesotho’s readiness to export surplus electricity to South Africa by 2026, supported by a new substation. She emphasised private sector engagement and investment-friendly reforms.
On healthcare, she stressed that nutrition and primary health must be at the centre of development to combat stunting and rural health disparities.
Unity for a Common African Future
In a symbolic gesture, Prime Minister Samuel Ntsokoane Matekane presented Dr. Adesina with the traditional ‘Seanamarena’ royal blanket, honouring him as a friend of Lesotho.
“Grenada has hosted Afreximbank; now Lesotho stands ready to welcome transformative partnerships for development,” said PM Matekane.
Dr. Adesina also held high-level meetings with ministers of Foreign Affairs, Agriculture, Health, Education, and Technology, alongside AfDB senior leadership including Executive Director Dr. Nomfundo X. Ngwenya and Deputy Director General for Southern Africa Moono Mupotola.
Reimagining Development in the Mountain Kingdom
This renewed partnership marks a turning point for Lesotho, as it positions itself as a hub for sustainable energy, regional trade, and inclusive development.
The African Development Bank’s commitment is not only a financial investment — it is a Pan-African affirmation of Lesotho’s potential to drive prosperity in the region.
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Source: African Development Bank
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