The African Development Bank Group (AfDB) has announced plans to invest $331 million in Lesotho’s key strategic sectors under its 2025-2030 Country Strategy Paper, which aims to bolster economic growth and industrial competitiveness in the country.
During his first official visit to Lesotho, AfDB president Akinwumi Adesina announced that the proposed $331 million investment will target infrastructure development, energy, capacity building, debt management and digital transformation.
“We will work on an integrated project that includes components of energy, a potential multi-partner $2.3 billion water transfer project from Lesotho through South Africa to Botswana, agro-value chains, and trade facilitation in Lesotho,” Adesina said after the meeting with King Letsie III.
The multi-partner water transfer project is expected to supply 308 million cubic meters of water annually for domestic, agricultural and industrial use through a 700 km pipe system and generate 22 megawatts of hydropower.
The bank aims to assist Lesotho to mobilise $260 million as its contribution for this initiative.
The AfDB chief praised the monarch’s leadership on the King Letsie III Just Energy Transition Fund, which seeks to generate 200 megawatts of power through private sector investments.
Lesotho’s Finance Minister Retselisitsoe Matlanyane noted that the country’s energy supply is expected to exceed domestic demand by 2026, enabling power exports to South Africa.
She also stressed the importance of investments in primary healthcare and nutrition to combat stunting.
King Letsie III expressed optimism about the bank’s commitment, describing Adesina as a “man of action” and pledging to implement policies to attract private sector investment in healthcare, agriculture and manufacturing.
Since joining the AfDB in 1973, Lesotho has benefited from 87 projects worth $429 million. Currently, eight projects valued at $60 million are ongoing.
JN/APA