Johannesburg — THE South African government has approved R7,4bn for the second phase of the Lesotho Highlands Water Project, and made R60m available towards the Lesotho Lowlands Water Supply project.

This was announced on Friday at the launch of the SA-Lesotho Joint Bilateral Commission of Co- operation's (JBCC's) economic projects in Mokhotlong, Lesotho.

In an agreement signed in 2001, SA undertook to assist Lesotho to graduate from its least developed country status to that of a developing country within five years.

Deputy Foreign Minister Fatima Hajaig said she was excited that through the JBCC, various economic projects in Lesotho had been identified. She urged that they be implemented as soon as possible.

"SA cannot be a prosperous nation in a sea of poverty. Our development as a nation must go hand in hand with developing our neighbours, " she said.

Lesotho Foreign Minister Mohlabi Tsekoa said that when the JBCC was signed in 2001, the Basotho nation was optimistic.

"The hope and expectations were that SA and Lesotho would work together in the tackling of socioeconomic development challenges that face the kingdom."

The JBCC projects include the R7,4bn invested in the second construction phase of the Lesotho Highlands Water project, the R60m made available through the African Renaissance Fund for Melotong Dam and Lesotho Lowlands Water Supply project -- both will provide water to SA -- and the upgrading of Sani Pass and the Maluti Drakensberg Transfrontier Park.

Other investment projects under feasibility studies include tourism, transport, service or business process outsourcing, property and agribusiness.

Happy Mahlangu, SA's high commissioner to Lesotho, said SA's role on the continent, in peacekeeping or economic development, was testimony to its ability to meet challenges.