AfDB to Invest $331M in Lesotho Under 2025–2030 Strategy to Accelerate Economic Growth

In a cultural gesture, Prime Minister Matekane presented Dr. Adesina with a 'Seanamarena' blanket, a prestigious national symbol traditionally worn by royalty and statesmen.

The African Development Bank Group (AfDB) has announced plans to invest $331 million in Lesotho over the next five years under its proposed 2025–2030 Country Strategy Paper (CSP), aiming to accelerate inclusive economic growth, strengthen industrial competitiveness, and boost regional integration through infrastructure and capacity development.

The strategic announcement came during a landmark visit by AfDB President Dr. Akinwumi Adesina — the first-ever visit to Lesotho by a sitting AfDB President — who was warmly received by His Majesty King Letsie III and Prime Minister Samuel Ntsokoane Matekane. The visit, rich in symbolism and substance, set the stage for a new era of collaboration between Lesotho and the Bank.

Transformational Investment Agenda: $331 Million for Lesotho’s Future

Dr. Adesina shared that the Bank’s 2025–2030 strategy for Lesotho will focus on high-impact investments in key areas:

• Energy infrastructure, including cross-border electricity transmission lines to South Africa

• Agricultural development to drive food security and strengthen rural economies

• Climate resilience and environmental sustainability

• Digital transformation, including broadband expansion to support e-governance and financial inclusion

• Water resource management, including support for a $2.3 billion regional water transfer project

• Public financial and debt management systems

• Trade and export competitiveness, particularly by enhancing quality standards and certifications

“The $331 million investment package will be transformational for Lesotho’s economy,” said Adesina. “It will support quality infrastructure, digital connectivity, trade, and social development — while laying the foundation for a competitive private sector.”

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Royal Engagement and Vision for Progress

Meeting with King Letsie III, Dr. Adesina discussed ways to strengthen the Bank’s partnership with Lesotho and expand investments to drive inclusive development. His Majesty hailed the visit as a milestone, reflecting AfDB’s confidence in the country’s trajectory.

“With haste, we will ensure that the policies and incentives to accommodate the needs of and attract the private sector are in place, especially in healthcare, agriculture, and manufacturing,” the King declared.

Describing Dr. Adesina as a “man of action,” King Letsie expressed confidence in the Bank’s ability to catalyze progress on Lesotho’s development goals, including sustainable energy, water security, and job creation.

Adesina also lauded the King’s advocacy work as the African Union Nutrition Champion, noting his instrumental leadership in addressing malnutrition, stunting, and youth development across the continent.

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Expanding Energy and Water Infrastructure

A centerpiece of AfDB’s future plans is the multi-partner $2.3 billion Lesotho-South Africa-Botswana water transfer project, designed to transfer 308 million cubic meters of water via a 700-km pipe network. The initiative is expected to support domestic, agricultural, and industrial water demands, while also generating up to 22 MW of hydropower.

AfDB will help Lesotho mobilize approximately $260 million to kickstart the project.

Finance Minister Retselisitsoe Matlanyane noted that Lesotho's energy production is set to exceed domestic demand by 2026. She emphasized the country’s intention to build a power substation for exporting surplus electricity to South Africa, reinforcing regional integration and revenue generation.

Health and Nutrition High on Agenda

In response to King Letsie’s request, the Bank committed to prioritizing investments in primary healthcare centers, targeting vulnerable communities. The initiative will support the government’s push to combat extreme stunting, especially in rural districts.

“Investing in primary health and nutrition is not just social development — it’s human capital development,” Adesina said. “We will support Lesotho with integrated solutions — combining energy, water, healthcare, agriculture, and trade.”

Track Record and Pipeline Projects

Since Lesotho joined the African Development Bank in 1973, the institution has financed 87 projects totaling $429 million. Eight projects worth $60 million are currently ongoing, with additional pipeline projects under preparation.

One flagship initiative, the Lesotho Lowland Rural Water Supply and Sanitation Project, has delivered tangible results:

• 190 kilometers of water pipelines

• Water tanks with a combined 3.48 million liters of capacity

• 166 water access points, serving over 28,000 people in Maseru and Berea districts

“This is the kind of impact we want to replicate across the country,” said Adesina.

A Call for Private Sector-Driven Growth

Amid shrinking global donor budgets, Dr. Adesina underscored the importance of mobilizing private capital to meet Africa’s development needs.

“Every challenge is an investor’s dream,” he stated. “Africa must be proactive. Capital, like water, always finds the most receptive place to go.”

Lesotho’s government is echoing this vision. Prime Minister Matekane emphasized his administration’s commitment to private sector-friendly reforms, increased transparency, and partnership-driven growth.

Cultural Honors and Diplomatic Engagements

During his stay, Dr. Adesina met with multiple Cabinet ministers, including those responsible for Foreign Affairs, Agriculture, Natural Resources, Health, Communication, and Education. Discussions focused on sectoral priorities and policy alignment with the Bank’s development goals.

In a cultural gesture, Prime Minister Matekane presented Dr. Adesina with a 'Seanamarena' blanket, a prestigious national symbol traditionally worn by royalty and statesmen.

The Bank’s delegation to Lesotho included:

• Dr. Nomfundo X. Ngwenya, AfDB Executive Director for Lesotho

• Moono Mupotola, Deputy Director General for Southern Africa

• Dr. Victor Oladokun, Senior Advisor to the President for Communication and Stakeholder Engagement

Looking Ahead: A New Chapter of Strategic Partnership

With its 2025–2030 strategy, the African Development Bank is set to usher in a new chapter in Lesotho’s development journey — one defined by infrastructure transformation, human capital investment, and increased private sector participation.

“Lesotho has the potential to become a regional hub for energy, water security, and sustainable agriculture,” said Adesina. “We will walk this journey together — faster, stronger, and with greater impact.”