Pretoria — South Africa has committed to helping Lesotho graduate from its least developed country status to that of a developing country.

"South Africa is committed to walking side by side with Lesotho in the identification and implementation of various projects, which have the potential to provide Lesotho with a solid foundation for growth and development," said President Jacob Zuma on Thursday.

The President, who is in the country for a state visit, was speaking during a state banquet.

"Our two countries have over the years signed bilateral agreements in various fields. We have to ensure steady implementation of these agreements for the benefit of our peoples."

He said working together they should be able to achieve this stated objective.

Currently rural Lesotho is dependant mainly on farming or migrant labour and is facing a high unemployment figure as well as HIV and AIDS infections.

The Kingdom is also economically dependant on South Africa, with more than 30 percent of its economically active population working in South Africa. Most of the Basotho population also do their shopping in South Africa.

However, projects to change this situation are underway. These include the Lesotho Highlands Water Project, the Geo-chemical Mapping Project, the Hydrological Project and the Sani Pass Project.

In support of these projects, Zuma revealed that government made R100 million available during the 2009-2010 financial year in support of these projects.

Of this amount, R60 million went to the Metolong Dam project while R40 million was in support of the construction of the Sani Pass to Mokhotlong access road.

"We trust that these projects will bring about economic development, create employment as well as investment opportunities in Lesotho," said Zuma, adding that they were a clear demonstration of deeper bilateral relations.

Zuma's state visit to Lesotho is aimed at consolidating the African Agenda with the aim of further cementing bilateral political, economic and social relations between the two countries.

During the visit bilateral agreements, including a Memorandum of Understanding (MOU) on Economic Cooperation, will be signed.

The visit which ends on Friday also saw the opening of the High Commission Diplomatic Chancery. Speaking at the opening of this, Zuma said it symbolises the future of bilateral relations - both at State level, as well as people-to-people relations.

"By this building, we are witnessing a move from the era of horse-riding diplomats of the Difaqane times who were exchanging messages from one leader to the other - to structured, permanent, presence in the service our people and other nationals.

"We are further witnessing the seriousness which both governments are investing in the future of our bilateral relations," said Zuma.