Lesotho Unveils Ambitious Development Roadmap with African Development Bank Partnership
The Kingdom of Lesotho has officially launched its Country Strategy Paper (CSP) for the period 2025-2030, a comprehensive development programme designed in close collaboration with the African Development Bank Group. The unveiling of this strategic document marks a significant step forward in Lesotho’s pursuit of sustainable economic growth and enhanced national prosperity.
The official launch event, held in Maseru, the nation’s capital, convened a distinguished assembly of stakeholders. Senior government officials, members of the diplomatic corps, representatives from civil society organisations, and key figures from the private sector were in attendance, underscoring the broad-based support and commitment to the strategy’s objectives.
A Strategic Vision for Growth
The 2025-2030 CSP is backed by an indicative operations programme valued at an impressive $209 million. This financial commitment will fuel initiatives across two critical priority areas:
Developing Sustainable Infrastructure for Industrialisation: This pillar focuses on bolstering key sectors essential for industrial advancement. It encompasses significant investments in:
- Energy: Enhancing power generation and distribution to ensure reliable and affordable energy access, a cornerstone for industrial operations.
- Information and Communication Technology (ICT): Expanding digital infrastructure and services to foster innovation, improve connectivity, and facilitate the growth of the digital economy.
- Water: Investing in water resource management, infrastructure, and sanitation to support both industrial needs and the well-being of the population.
Strengthening Institutional Capacity: This crucial area aims to improve the overall efficiency and effectiveness of public and private institutions. Key objectives include:
- Improving Public-Sector Efficiency: Streamlining government processes, enhancing service delivery, and fostering good governance to create a more conducive environment for development.
- Enhancing Private-Sector Competitiveness: Implementing reforms that reduce the cost of doing business, improve access to finance, and support entrepreneurship, thereby stimulating private investment and job creation.
Harnessing Lesotho’s Unique Assets
Speaking at the launch, the Minister of Foreign Affairs, Lejone Mpotjoana, who represented the Minister of Finance and Development Planning, eloquently described the CSP as “a declaration of shared ambition.” He emphasised the imperative of leveraging Lesotho’s considerable natural endowments—ranging from its high-quality diamond reserves and abundant water resources to its significant renewable energy potential—to drive sustainable productivity and economic diversification.
Moono Mupotola, the Deputy Director General for Southern Africa at the African Development Bank and Country Manager for Lesotho, characterised the strategy as a pivotal moment in the Bank’s long-standing engagement with the Kingdom. Since commencing its lending operations in 1974, the Bank has provided substantial support to Lesotho, approving 68 loans and grants totalling $448 million, all of which have been sovereign operations.
A New Era of Private Investment
A significant departure in the 2025-2030 CSP is the introduction of a programme for non-sovereign operations. This signals a concerted effort to attract and unlock private investment across various sectors, with a particular focus on emerging opportunities within the tourism industry. Lesotho’s breathtaking highland landscapes, including the unique Afriski Mountain Resort—the continent’s sole ski resort—are recognised as offering a distinct competitive advantage and a strong platform for generating employment.
“Lesotho possesses assets that few nations in the region can rival,” Mupotola stated, highlighting the potential for these natural and cultural resources to serve as “genuine platforms for intensive employment growth.”
Navigating Economic Headwinds
The launch of this ambitious strategy takes place against a backdrop of evolving global and regional economic challenges. During a panel discussion following the official ceremony, Emmanuel Maluke Letete, the Governor of the Central Bank of Lesotho, provided a candid assessment of the nation’s fiscal landscape. He cautioned that Lesotho’s fiscal position remains susceptible to external shocks. These include the volatility of global commodity prices, particularly oil, which can significantly impact purchasing power, and the potential for fluctuations in revenues from the Southern African Customs Union (SACU), which are crucial for the government’s fiscal manoeuvre. The discussion was expertly moderated by Edward Sennoga, Lead Economist for Southern Africa at the African Development Bank.
Government officials acknowledged these economic pressures. However, they also pointed to recent fiscal surpluses, buoyed by robust SACU receipts and elevated water royalties, as tangible evidence of the positive impact of ongoing reform efforts. They reiterated their unwavering commitment to critical reforms, including regulatory streamlining, enhanced public financial management, and the strengthening of project implementation capacities, all of which are deemed essential for the successful execution of the CSP.
The Country Strategy Paper itself was meticulously developed through extensive consultations involving government ministries, civil society organisations, development partners, and local communities. This participatory approach, as presented by Cynthia Nyakeri, the Bank’s Senior Country Economist for Lesotho, ensures a strong emphasis on national ownership and alignment with Lesotho’s development priorities.
The African Development Bank Group has been a steadfast partner to Lesotho since 1973. Its current active portfolio in the country comprises seven operations valued at $49 million, addressing critical needs in water and sanitation, communications, governance, and energy. This enduring partnership underscores a shared vision for a more prosperous and resilient Lesotho.
