Lesotho is set to receive a significant boost in revenue thanks to a recalculation of water royalties paid by South Africa. Under the Lesotho Highlands Water Project (LHWP), Lesotho will now earn M298 million ($20.6 million) per month, more than double the previous M130 million ($9 million).
This increase comes after a review by both governments, prompted by changes in the LHWP’s future phases. The LHWP delivers water from Lesotho’s dams to Gauteng, South Africa’s economic hub, and the new rate reflects the crucial role this water plays.
The recalculation is also a prelude to a full review of the LHWP Treaty, which was signed in 1986 and hasn’t been comprehensively reviewed since. Lesotho is pushing for a renegotiation of the terms, arguing that public participation was excluded during the initial signing due to the undemocratic nature of the governments at the time.
