Lesotho wants to attract private investors says King Letsie III
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Lesotho wants to attract private investors says King Letsie III
With dwindling donor funds Lesotho aims to attract the private sector.
President Donald Trump’s aid cuts to the mountain Kingdom of Lesotho will have a significant impact on the country’s economy. To make up for the shortfall, the country will have to attract the interest of investors and the private sector.
“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,” said King Letsie III earlier this week during a visit to the country by African Development Bank President Dr. Akinwumi Adesina.
“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,” said Adesina.
Investing in key sectors
The African Development Bank president mentioned Lesotho’s King Letsie III Just Energy Transition Fund as a good example. The Fund aims to generate approximately 200 megawatts of power through private sector investments.
The African Development Bank Group plans to invest USD331-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.
Currently the African Development Bank is invested in eight projects at various phases of development throughout the country. Together, these projects are worth more than USD60-million.
What is the investment strategy?
The Bank’s investment strategy for Lesotho will focus mainly on energy infrastructure ( including electricity transmission lines connecting Lesotho to South Africa); agricultural development; climate resilience initiatives to address environmental challenges; digital transformation; water resource management (building on the success of the Lesotho Lowland Rural Water Supply Project); public financial management and debt management support and trade competitiveness enhancements through improved grades and standards for exports.
“We will work on an integrated project that includes components of energy, a potential multi-partner USD2.3-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 mobilising approximately USD260- 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.
2025 WhyAfrica Road Trip through Africa
WhyAfrica will visit projects in the mining, water management, infrastructure, quarrying, agriculture and environmental management sectors during our 2025 WhyAfrica overland Road Trip through Africa later this year.
If your company has project in Lesotho or delivers products and services in those sectors and want to expand into Lesotho and become part of the 2025 WhyAfrica Road Trip story, contact me on leon@whyafrica.co.za as soon as you can.
Lesotho wants to attract private investors says King Letsie III
