African Development Bank to Expand Investment in Lesotho to $331 Million
The African Development Bank Group plans to invest $331 million in key strategic sectors in Lesotho as part of its proposed Country Strategy Paper for 2025-2030 to boost economic growth and industrial competitiveness.
During an official visit to Lesotho — the first by an African Development Bank President — Dr. Akinwumi Adesina met with His Majesty King Letsie III to discuss strengthening development partnerships and expanding the Bank’s investments in the country.
His Majesty expressed delight at the Bank President’s visit, viewing the mission as a reflection of the Bank and Adesina’s appreciation for Lesotho’s progress in improving people’s lives.
“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 remarked.
King Letsie said he was confident that Adesina, whom he described as a ‘man of action,’ would help catalyze progress on the Bank’s strategic projects in Lesotho.
Adesina thanked King Letsie for his strong leadership role as the African Union Nutrition Champion since 2014, his advocacy for improved nutrition and food security on the continent — especially for women, adolescents, and children — and his passion for youth development.
The African Development Bank president commended His Majesty for his leadership on the King Letsie III Just Energy Transition Fund, which aims to generate approximately 200 megawatts of power through private sector investments.
He also briefed King Letsie about the Bank’s new 2025-2030 Country strategy paper and planned investments of $331 million to support quality infrastructure, capacity building, energy, integration and interconnectivity, debt management and standards, and strengthening the office of the Prime Minister.
Referencing dwindling donor commitments globally, Dr. Adesina said, “Africa must prepare to engage more proactively with the private sector. Every challenge is an investor’s dream. Ultimately, capital, like water, will always find a receptive place to go.”
According to Adesina, the Bank has implemented 87 projects totaling $429 million since Lesotho joined the Bank in 1973.
“We have eight ongoing projects worth $60 million, and we look forward to significantly expanding our commitments,” Adesina said.
The Bank’s investment strategy for Lesotho will focus on several priority areas:
- Energy infrastructure, including electricity transmission lines connecting Lesotho to South Africa
- Agricultural development to enhance food security and rural livelihoods
- Climate resilience initiatives to address environmental challenges
- Digital transformation, including broadband expansion for digital financial inclusion and government service digitalization
- Water resource management, building on the success of the Lesotho Lowland Rural Water Supply Project
- Public financial management and debt management support
- Trade competitiveness enhancements through improved grades and standards for exports
The African Development Bank-led Lesotho Rural Water Supply and Sanitation Project has delivered remarkable results: 190 kilometers of pipeline to distribution networks, water storage tanks with a total capacity of 3.48 million liters, and 166 public water points serving approximately 28,266 people across eight zones in Maseru and Berea districts.
Responding to King Letsie’s request, Dr. Adesina said the Bank will prioritize investments in primary healthcare centers across Lesotho.
“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 Bank is expected to support Lesotho in mobilizing approximately $260 million for the integrated water transfer project, which will supply 308 million cubic meters of water for domestic, agricultural, and industrial use through a 700 km pipe system. The project has the potential to generate up to 22 MW of hydropower.
Speaking earlier, Minister of Finance and Development Planning Dr. Rets’elisitsoe Matlanyane indicated that as Lesotho’s energy supply will exceed domestic demand by the end of 2026, the country intends to build a substation to export excess power production to South Africa. She reiterated Lesotho’s commitment to private sector-friendly policies and engagement.
The minister highlighted the importance of primary healthcare and nutrition investments to help combat extreme stunting in several parts of the country.
King Letsie is the African Union-appointed African Leaders for Nutrition champion. The initiative, spearheaded by the African Development Bank and championed by African leaders, works to galvanize political will and significant investments to end malnutrition on the continent.
Dr. Adesina also met with Prime Minister Samuel Ntsokoane Matekane; and the ministers of Foreign Affairs; Agriculture, Food Security & Nutrition; Natural Resources; Health; Communication, Science & Technology; and Education & Training.
The Bank’s delegation to Lesotho included its Executive Director for Lesotho, Dr. Nomfundo X. Ngwenya; Deputy Director General for Southern Africa, Moono Mupotola; and Senior Advisor to the President for Communication and Stakeholder Engagement, Dr. Victor Oladokun.
