The announcement was made during a historic visit to Lesotho by AfDB President Dr. Akinwumi Adesina, marking the first-ever official visit by a sitting president of the Bank. During his visit, Dr. Adesina met with His Majesty King Letsie III, Prime Minister Samuel Ntsokoane Matekane, and several senior government officials to discuss expanding the Bank’s commitment to Lesotho.

King Letsie III welcomed Dr. Adesina, describing the visit as a reflection of the Bank’s confidence in Lesotho’s progress. He emphasized the country’s commitment to attracting private sector investments, particularly in healthcare, agriculture, and manufacturing.

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

He also praised Dr. Adesina as a “man of action”, expressing optimism that the Bank’s investments would help fast-track development projects in the country.

Dr. Adesina outlined the $331 million investment plan, which will prioritize:

• Energy infrastructure, including new transmission lines connecting Lesotho and South Africa

• Agriculture and food security to enhance rural livelihoods

• Climate resilience initiatives to mitigate environmental challenges

• Digital transformation, with a focus on broadband expansion for financial inclusion and government services

• Water resource management, building on the success of the Lesotho Lowland Rural Water Supply Project

• Public financial and debt management support

• Trade competitiveness, improving standards for Lesotho’s exports

Additionally, the Bank is mobilizing $260 million for a multi-partner $2.3 billion water transfer project from Lesotho to South Africa and Botswana, which aims to deliver 308 million cubic meters of water annually via a 700 km pipeline while generating 22 MW of hydropower.

King Letsie III, who has been the African Union Nutrition Champion since 2014, emphasized the importance of primary healthcare and nutrition investments, particularly in regions affected by extreme malnutrition.

In response, Dr. Adesina committed to prioritizing primary healthcare investments, integrating them with energy, agro-value chains, and trade facilitation projects in Lesotho.

Advancing Lesotho’s Energy and Trade Ambitions

Finance and Development Planning Minister Retselisitsoe Matlanyane stated that Lesotho’s energy supply will exceed domestic demand by 2026, positioning the country as a potential electricity exporter to South Africa. She reiterated the government’s commitment to private sector engagement to accelerate industrial and infrastructure development.

The visit also included high-level meetings with key government ministers responsible for foreign affairs, agriculture, natural resources, health, communication, and education.

Since joining the African Development Bank in 1973, Lesotho has benefited from 87 AfDB-funded projects worth $429 million. Currently, the Bank is implementing eight active projects valued at $60 million, with plans to expand its commitments significantly in the coming years.

Dr. Adesina concluded his visit by reaffirming the Bank’s long-term commitment to Lesotho’s economic transformation, emphasizing that Africa must proactively engage the private sector to attract more investments.

“Every challenge is an investor’s dream. Ultimately, capital, like water, will always find a receptive place to go,” he said.