The African Development Bank (AfDB) is poised to inject $331 million into Lesotho’s economy under its new 2025-2030 Country Strategy, aimed at driving industrial competitiveness and fostering long-term economic growth.
In a landmark visit to Lesotho, Dr. Akinwumi Adesina, the first-ever AfDB President to visit the country, met with His Majesty King Letsie III to discuss expanding the Bank’s investments in key sectors, including energy, agriculture, and healthcare. The King welcomed the visit, noting that it reflects the AfDB’s recognition of Lesotho’s progress in improving the lives of its citizens.
During their meeting, Dr. Adesina commended King Letsie for his leadership in championing nutrition and food security across Africa, particularly through his role as the African Union’s Nutrition Champion. He also praised the King’s leadership in the King Letsie III Just Energy Transition Fund, which aims to generate 200 megawatts of power through private-sector investments.
The $331 million investment will focus on strengthening Lesotho’s infrastructure, enhancing energy resources, promoting digital transformation, and addressing climate change. AfDB’s strategy will also support rural development, improve water management, and enhance agricultural productivity to secure food security.
Since Lesotho became a member of the Bank in 1973, the AfDB has implemented 87 projects worth $429 million. Currently, eight ongoing projects valued at $60 million are underway, with plans for further expansion. The Bank’s investment strategy will prioritize energy infrastructure projects, including the development of electricity transmission lines linking Lesotho to South Africa.
Dr. Adesina also discussed an ambitious water transfer project, which would see water transported from Lesotho through South Africa to Botswana. The AfDB aims to help mobilize up to $260 million for the $2.3 billion project, which will provide up to 22 MW of hydropower and deliver 308 million cubic meters of water for domestic, agricultural, and industrial use.
In response to the King’s request, Dr. Adesina pledged to prioritize investments in Lesotho’s primary healthcare facilities, reinforcing the Bank’s commitment to addressing the nation’s health challenges, especially in rural areas.
Lesotho’s government, led by Prime Minister Samuel Ntsokoane Matekane, is keen to engage the private sector to support these ambitious plans. The country is also planning to build a new substation to export surplus electricity to South Africa by 2026, further boosting its energy export potential.
The AfDB delegation, which included Dr. Nomfundo X. Ngwenya, Moono Mupotola, and Dr. Victor Oladokun, also met with key Lesotho government ministers to explore further opportunities for collaboration, especially in areas of public financial management and debt management.
