The African Development Bank Group (AfDB) is set to invest $331 million in Lesotho as part of its 2025-2030 Country Strategy Paper aimed at boosting the nation’s economic growth and industrial competitiveness.
AfDB President Dr. Akinwumi Adesina, during his historic visit to Lesotho—the first by an AfDB President—met with King Letsie III to discuss strengthening development partnerships and expanding investments in key sectors. The King expressed his pleasure at the visit, noting it reflected both the Bank’s commitment to Lesotho and its support for the country’s progress in improving the quality of life for its people.
Dr. Adesina commended the King for his leadership in various initiatives, including the King Letsie III Just Energy Transition Fund, which seeks to generate 200 megawatts of power through private sector investments. He also recognized the King’s role as the African Union Nutrition Champion, advocating for improved nutrition and food security across Africa.
The $331 million investment, according to Dr. Adesina, will support critical sectors such as infrastructure, energy, agricultural development, climate resilience, and digital transformation. Specific plans include enhancing energy infrastructure, expanding digital financial inclusion, and improving water resource management, with a particular focus on the Lesotho Lowland Rural Water Supply Project.
The AfDB’s support in Lesotho has already been substantial. Since joining the Bank in 1973, the country has benefited from 87 projects totaling $429 million. Currently, eight ongoing projects worth $60 million are underway, with more commitments on the horizon. The Bank is particularly focused on energy transmission projects linking Lesotho to South Africa, as well as initiatives to improve agricultural food security and rural livelihoods.
Lesotho is also planning a $2.3 billion water transfer project that could be backed by the AfDB, which aims to send water from Lesotho through South Africa to Botswana. This project, expected to generate up to 22 MW of hydropower, will provide significant water resources for domestic, agricultural, and industrial use.
AfDB is also committed to supporting healthcare in Lesotho, particularly primary healthcare centers, in response to King Letsie’s request. Dr. Adesina emphasized the importance of comprehensive projects that integrate energy, agriculture, and water systems to address multiple development challenges in the country.
The AfDB delegation, including Dr. Nomfundo X. Ngwenya, Moono Mupotola, and Dr. Victor Oladokun, also met with key government officials such as Prime Minister Samuel Ntsokoane Matekane and ministers from various sectors, including agriculture, health, and education, to discuss future cooperation.
This substantial financial commitment is a critical step in supporting Lesotho’s ongoing efforts to enhance its economic landscape, improve public services, and foster sustainable development.
 is set to invest $331 million in Lesotho as part of its 2025-2030 Country Strategy Paper aimed at boosting the nation’s economic growth and industrial competitiveness.){kind=link}