Supporting Lesotho’s bold plans for sustainable water and energy supply in southern Africa: King Letsie III and Akinwumi Adesina meet

The Kingdom of Lesotho, with support from the African Development Bank, is leveraging its abundant water and renewable energy resources to chart an ambitious path that will accelerate its economic transformation and have a huge impact on South Africa and Botswana.

His Majesty King Letsie III and the President of the African Development Bank, Dr Akinwumi Adesina, met in Lesotho’s capital, Maseru, to discuss a transformative partnership designed to accelerate economic growth in the country. Their discussions focused on infrastructure and human capacity development, health, agriculture, tourism, manufacturing, and private sector investments to unleash Lesotho’s potential as an economic giant.

"We will hasten to ensure that the right policies and incentives are in place to  attract participation from the private sector, particularly in sectors such as health, agriculture, and manufacturing." King Letsie III said.

The African Development Bank Group has earmarked $331 million for investment in Lesotho from 2025 to 2030, focusing on quality infrastructure, capacity building, energy development, regional integration, and institutional strengthening. The Bank’s approach aligns with the upcoming Country Strategy Paper, which has at its core the revitalization of private sector-driven job creation to promote inclusive economic growth.

"In the world we live in today, the aid architecture has completely changed. We discussed emerging global developments and how to adapt, as well as what it will take to  attract private investment. We will support the Kingdom of Lesotho’s  institutional, technical and human capacity, as well as help design bankable projects that attract investment.” Adesina said.

According to the  Bank Group president, Lesotho’s abundant hydropower and other renewable energy sources such as wind and solar, has the potential to generate more than enough electricity for domestic consumption and surplus capacity for export to neighbouring countries.

The Bank is committed to supporting a 700km water transfer project that will supply Lesotho and the region with 308 million cubic meters of water for domestic, agricultural, and industrial use. The Bank is expected to mobilize approximately $260 million for the project.

"We will work on a $2.3 billion multi-partner integrated water transfer project that includes energy components, from agro-value chains and trade facilitation in Lesotho, and from Lesotho through South Africa to Botswana, Adesina said after meeting with King Letsie III.

The Minister for Finance and Development Planning, Dr Rets'elisitsoe Matlanyane said Lesotho plans to build a substation to export excess power production to South Africa as its energy supply will exceed domestic demand by the end of 2026.

The government is transforming Lesotho into a renewable energy powerhouse through His Majesty King Letsie III's Just Energy Transition Fund, the monarch’s bold blueprint for renewable development. The Kingdom also aims to meet its Paris Agreement commitments well before 2050 as a fully carbon-neutral power producer.

A critical water tower with extraordinary potential

Lesotho, also known as the “Kingdom in the Sky” is a critical regional water tower. The country's montane wetlands are vital for millions living in the Orange River Basin that stretches across Lesotho, South Africa, Botswana, and Namibia.

Rivers flowing from its highlands are critical for meeting the region’s secure and sustainable water and energy supply needs.

Domestically, the government is determined to provide universal access to clean water and sanitation by the end of 2025. The African Development Bank-financed Lesotho Rural Water Supply and Sanitation Project is delivering significant impact. Up to 190 kilometers of pipelines to distribution networks, water storage tanks with a capacity of 3.48 million litres, and 166 public water points have been installed, serving some 28,266 people in eight zones in the Maseru and Berea districts.

While in Lesotho, Adesina visited the Sekete Primary School and Thusong Health Clinic, two community-based institutions that benefit from the African Development Bank's Lesotho Rural Water Supply and Sanitation Project.

"These children are our future.  Every investment we make in water, sanitation, and education is an investment in Africa's present and future potential."

Describing Adesina as a man of action, King Letsie III expressed his delight at his official visit, the first ever by a president of the African Development Bank.  His Majesty termed it as a reflection of the Bank’s and Adesina's appreciation for Lesotho's progress in transforming and improving people's lives.

Adesina thanked King Letsie III for his strategic and transformational leadership as the African Union Nutrition Champion since 2014, and for advocating globally for improved nutrition, food security, and youth and gender development on the continent.

The Bank Group president also met with Lesotho’s Prime Minister Samuel Ntsokoane Matekane and the Ministers of Foreign Affairs, Agriculture, Food Security and Nutrition, Natural Resources, Health, Communications, Science and Technology, and Education and Training.

"We currently have eight ongoing projects worth $60 million and look forward to significantly increasing our engagement with the Kingdom," said Adesina.

Lesotho’s natural water resources and landscape present it with enormous opportunities for irrigation to enhance its agricultural production and salmon and trout fish farming. In addition to its growing textile industry, Lesotho has significant potential in diamond mining and high-altitude tourism.

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.

Lesotho joined the African Development Bank in 1973. Since then, it has implemented eighty-seven projects supported by the Bank worth $429 million.

Cover photo:  King Letsie III of Lesotho and African Development Bank President Dr. Akinwumi Adesina met recently in Maseru to discuss a transformative partnership to bolster Lesotho's economic growth.