The African Development Bank Group launched its Country Strategy Paper (CSP) for the Kingdom of Lesotho on Wednesday, setting out an ambitious development programme covering the period 2025 to 2030.
The launch event in Maseru, the country's capital, brought together senior government officials, the diplomatic corps, civil society organisations, and private sector representatives.
Backed by an indicative operations programme valued at $209 million, the strategy focuses on two priority areas: developing sustainable infrastructure to support industrialisation--spanning energy, ICT, and water--and strengthening institutional capacity to improve public-sector efficiency and private-sector competitiveness.
Speaking on behalf of the Minister of Finance and Development Planning, the Minister of Foreign Affairs, Lejone Mpotjoana, described the CSP as "a declaration of shared ambition". He noted that Lesotho's natural endowments -- including high-quality diamonds, abundant water resources, and significant renewable energy potential -- must be harnessed to drive sustainable productivity.
African Development Bank's Deputy Director General for Southern Africa, Moono Mupotola, who also serves as Country Manager for Lesotho, characterised the strategy as a turning point in the Bank's engagement with the country.
Since beginning lending operations in 1974, the Bank has approved 68 loans and grants for Lesotho totalling $448 million, all of which have been sovereign operations.
For the first time, the 2025-2030 CSP introduces a programme of non-sovereign operations, signalling a renewed push to unlock private investment across several sectors, including tourism. Lesotho's highland landscapes - among them Afriski Mountain Resort, the continent's only ski resort - are regarded as offering a distinct advantage.
"Lesotho has assets that few countries in the region can match," Mupotola said. "These are genuine platforms for intensive employment growth."
The strategy comes amid mounting economic headwinds. Speaking during a panel discussion following the launch, Central Bank Governor Emmanuel Maluke Letete warned that Lesotho's fiscal position remains highly vulnerable to external shocks -- including rising global tensions that can push up oil prices and erode purchasing power, as well as potential slowdowns in South African Customs Union (SACU) revenues, which constrain the government's fiscal space. The discussion was moderated by African Development Bank's Lead Economist for Southern Africa, Edward Sennoga.
Government officials acknowledged these pressures while pointing to recent fiscal surpluses, underpinned by strong SACU receipts and elevated water royalties, as evidence that ongoing reforms are bearing fruit. They reaffirmed their commitment to regulatory streamlining, improved public financial management, and stronger project implementation capacity as conditions critical to the strategy's success.
The CSP, presented by the Bank's Senior Country Economist for Lesotho, Cynthia Nyakeri, was developed through extensive consultations with government, civil society, development partners, and local communities, reflecting a strong emphasis on national ownership.
The African Development Bank Group has partnered with Lesotho since 1973. Its current active portfolio comprises seven operations valued at $49 million, spanning water and sanitation, communications, governance, and energy.
