Lesotho’s agricultural sector is set for a major transformation following the African Development Bank’s (AfDB) announcement of a USD331 million (Over M6 billion) investment under its 2025-2030 Country Strategy Paper.
This investment will focus on agriculture, food security, rural livelihoods, and climate resilience, positioning the sector as a key driver of economic growth and sustainability.
During an official visit to Lesotho—the first by an AfDB President—Dr. Akinwumi Adesina met with His Majesty King Letsie III, Prime Minister Samuel Ntsokoane Matekane, and top government officials to outline the Bank’s commitment to strengthening Lesotho’s agricultural value chains and infrastructure.
“We will continue to support Lesotho very strongly through our new focus on infrastructure for industrial competitiveness,” Dr. Adesina stated.
His Majesty King Letsie III, who has long been an advocate for food security and agricultural development, welcomed AfDB’s increased focus on the sector, highlighting its potential to create jobs, improve nutrition, and strengthen the economy.
“With haste, we will ensure that the policies and incentives to accommodate the needs of and attract the private sector are in place, especially in healthcare, agriculture, and manufacturing,” the King stated.
Lesotho’s farmers are on the frontlines of climate change, facing severe droughts and unpredictable weather patterns that disrupt crop cycles and threaten livestock. Recognising this, AfDB’s investment will prioritise on Water Resource Management which will see the scaling up rainwater harvesting, irrigation projects, and watershed conservation to ensure farmers have reliable water access, Lesotho’s role in a USD2.3 Billion Regional Water Project where the Bank will help mobilise USD260 million for a water transfer project that will supply 308 million cubic meters of water annually for agricultural, domestic, and industrial use through a 700 km pipeline, as well as the Rural Water & Sanitation Expansion which will be building on the success of the Lesotho Lowland Rural Water Supply Project, which has already provided clean water to 28,266 people across eight zones in Maseru and Berea districts.
Dr. Adesina reaffirmed that AfDB’s support for Lesotho’s agriculture sector is long-term.
Since 1973, the Bank has invested USD429 million in the country, with eight active projects worth USD60 million currently in progress.
“Every challenge is an investor’s dream. Ultimately, capital, like water, will always find a receptive place to go,” he noted, urging Lesotho’s government and private sector to create an enabling environment for agri-investments.
Finance Minister Dr Retselisitsoe Matlanyane highlighted that Lesotho’s energy supply will exceed demand by 2026, allowing for electricity exports to South Africa—a move that will further support energy-reliant agricultural projects such as irrigation farming and agro-processing.
