The African Development Bank Group launched its Country Strategy Paper (CSP) for the Kingdom of Lesotho, outlining a comprehensive development programme for 2025 to 2030. The launch in Maseru brought together senior government officials, diplomats, civil society representatives, and private sector stakeholders. Backed by an indicative operations programme valued at $209 million, the strategy prioritizes sustainable infrastructure development—including energy, ICT, and water—to support industrialization, alongside strengthening institutional capacity to enhance public-sector efficiency and private-sector competitiveness.
Government officials highlighted Lesotho’s natural assets, such as high-quality diamonds, abundant water resources, and renewable energy potential, as key drivers for sustainable productivity. The African Development Bank’s Deputy Director General for Southern Africa, Moono Mupotola, described the CSP as a turning point in the Bank’s engagement with Lesotho. Since 1974, the Bank has approved 68 sovereign loans and grants totaling $448 million. For the first time, the 2025–2030 strategy includes non-sovereign operations to attract private investment in sectors like tourism, leveraging Lesotho’s unique highland landscapes, including Afriski Mountain Resort.
The strategy arrives amid economic challenges, with Central Bank Governor Emmanuel Maluke Letete noting Lesotho’s vulnerability to external shocks such as rising oil prices and potential slowdowns in SACU revenues. Government officials emphasized that fiscal surpluses from strong SACU receipts and water royalties demonstrate progress from ongoing reforms, and reaffirmed their commitment to regulatory streamlining, improved public financial management, and stronger project implementation.
Developed through extensive consultations with government, civil society, development partners, and local communities, the CSP reflects strong national ownership. The African Development Bank Group, which has partnered with Lesotho since 1973, currently manages an active portfolio of seven operations valued at $49 million, covering water and sanitation, communications, governance, and energy.
