African Development Bank Group to Invest $331 Million in Lesotho
The African Development Bank Group (AfDB) has announced plans to invest $331 million in Lesotho’s key strategic sectors as part of its 2025-2030 Country Strategy Paper, aiming to boost economic growth and industrial competitiveness.
During an official visit to Lesotho—the first by an AfDB President—Dr. Akinwumi Adesina met with His Majesty King Letsie III to discuss strengthening development partnerships. King Letsie III welcomed the investment, emphasizing the importance of policies and incentives to attract private sector participation in healthcare, agriculture, and manufacturing.
He described Adesina as a “man of action” and expressed confidence in the Bank’s commitment to accelerating development in Lesotho.
Dr. Adesina commended King Letsie III’s leadership as the African Union Nutrition Champion and lauded the King’s Just Energy Transition Fund, aimed at generating 200 megawatts of power through private sector investment.
Adesina highlighted the Bank’s past investments, stating that since Lesotho joined the AfDB in 1973, the Bank has funded 87 projects worth $429 million. Currently, eight projects worth $60 million are ongoing.
The $331 million investment will prioritize infrastructure, energy, agriculture, digital transformation, climate resilience, and trade competitiveness. A key component includes a planned electricity transmission line linking Lesotho to South Africa.
Additionally, the Bank is mobilizing $260 million for an integrated water transfer project that will transport 308 million cubic meters of water across a 700 km pipeline, potentially generating up to 22 MW of hydropower.
Dr. Adesina reaffirmed the Bank’s commitment to primary healthcare investment in response to King Letsie’s request. The Bank also plans to support trade facilitation, financial management, and public sector capacity building. Minister of Finance and Development Planning Retselisitsoe Matlanyane noted that Lesotho’s energy supply will exceed domestic demand by 2026, positioning the country as an electricity exporter to South Africa.
Accompanying Dr. Adesina were AfDB 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. The delegation met with Prime Minister Samuel Ntsokoane Matekane and key ministers to discuss economic growth strategies and investment facilitation.
