African Development Bank launches $209 million strategy to boost Lesotho’s economy

The African Development Bank has launched a new Country Strategy Paper (CSP) for the Lesotho, outlining a development programme worth $209 million for the 2025–2030 period.

Presented on Wednesday in Maseru, the strategy brings together government officials, diplomats, civil society representatives and private sector actors, marking a renewed push to attract private investment under non-sovereign operations, particularly in tourism and infrastructure.

The plan is built around two main pillars: developing sustainable infrastructure to support industrialisation—especially in energy, ICT and water—and strengthening institutional capacity to improve public sector efficiency and private sector competitiveness.

Officials highlighted Lesotho’s key natural assets, including high-quality diamonds, abundant water resources and strong renewable energy potential, as central to driving long-term growth. The country also aims to leverage tourism opportunities, including its highland landscapes and the Afriski Mountain Resort, Africa’s only ski destination.

The strategy comes as Lesotho faces rising economic vulnerabilities linked to global shocks and fluctuations in revenues from the Southern African Customs Union (SACU), although recent fiscal surpluses have been supported by strong receipts and hydropower royalties.

The AfDB has been a long-standing partner of Lesotho since the 1970s, with its active portfolio currently spanning infrastructure, water, energy, governance and communications projects.