AGP Executive Report

Investment Support: Lesotho has signed a three-year partnership with the African Legal Support Facility for legal and technical help on priority projects in energy, natural resources, infrastructure and public finance. Earlier support helped the government raise Letšeng’s diamond royalties from 8% to 10%. Business Connectivity: Vodacom Lesotho has launched Starlink-powered satellite internet for businesses, extending connectivity options beyond traditional networks. Textile Jobs: The government is targeting 70,000 textile jobs by 2033, while an AGOA reprieve is giving the industry time to pursue higher-value production. Power Supply: A Ha Belo power project is due to be commissioned, adding to the country’s push to strengthen energy infrastructure.

Investment Deals: Lesotho’s three-year partnership with the African Legal Support Facility will provide legal and technical help on priority projects in natural resources, energy, infrastructure and public finances. The facility previously helped secure higher royalties from Letšeng’s diamond sales. Textile Industry: A seven-year roadmap aims to shift the sector from basic assembly to higher-value garments using local wool and mohair. Textile employment has fallen from 38,000–40,000 in 2023 to 30,000–35,000, making the push to rebuild orders and jobs urgent. Business Connectivity: Vodacom Lesotho has launched Starlink-powered satellite internet for businesses and public institutions, including as backup connectivity for remote operations. Industrial Power: The Ha Belo Industrial Estate is due to be connected to the national grid in November. Reliable electricity is expected to support its 16 factory shells and expand industrial activity beyond Maseru.

Investment Deals: Lesotho’s three-year partnership with the African Legal Support Facility will provide legal and technical help for priority projects in energy, natural resources, infrastructure and public finance. Earlier support helped raise Letšeng diamond royalties from 8% to 10%. Business Connectivity: Vodacom Lesotho has launched Starlink-powered satellite internet for businesses and public institutions, targeting remote areas and providing backup connectivity for sectors including finance, agriculture and logistics. Textile Industry: A new seven-year roadmap aims to shift the sector towards higher-value garments and local wool and mohair. It follows a steep decline in US exports and factory employment, with the strategy focused on restoring orders and confidence. Industrial Power: The Ha Belo electrification project is due to connect a 16-factory industrial estate to the national grid on November 13, supporting efforts to expand manufacturing beyond Maseru.

Business Connectivity: Vodacom Lesotho has launched Starlink-powered satellite internet for businesses, targeting remote areas and offering backup links for sectors including finance, agriculture and logistics. Textiles: A seven-year industry roadmap aims to shift Lesotho from basic assembly to higher-value garments and wool and mohair products. The sector has lost orders and jobs, with employment down from 38,000–40,000 in 2023 to about 30,000–35,000. Industrial Power: The Ha Belo electrification project, due to be commissioned on November 13, will connect an industrial estate with 16 factory shells to the national grid, supporting industrial growth beyond Maseru. Project Support: Lesotho and the African Legal Support Facility have agreed on a framework for legal and technical assistance on priority projects in energy, infrastructure, natural resources and sovereign finance. Public Accountability: The Public Accounts Committee questioned WASCO over a China trip paid for by a company bidding for the utility’s smart-meter contract, raising concerns about conflicts of interest.

Rural Investment: The World Bank and IFAD signed a framework to expand co-investment in rural economies, food systems and job creation, with a focus on resilience and entrepreneurship. Textiles: Lesotho’s seven-year industry roadmap aims to move beyond basic assembly into higher-value garments using local wool and mohair. The government is targeting 70,000 textile jobs by 2033, while an AGOA reprieve gives the sector time to adapt. Industrial Power: Prime Minister Sam Matekane is due to commission the Ha Belo grid connection on November 13, bringing electricity to an industrial estate with 16 factory shells and supporting industrial growth beyond Maseru. Business Connectivity: Vodacom Lesotho has launched Starlink-powered satellite internet for businesses and public institutions, offering primary or backup links for remote and underserved areas. Project Support: Lesotho and the African Legal Support Facility have agreed on a three-year framework for legal and technical help with priority projects in energy, infrastructure, natural resources and sovereign finance.

Business Connectivity: Vodacom Lesotho has launched Starlink-powered satellite internet for businesses and public institutions, offering backup links and service in remote areas. It targets sectors including finance, agriculture, logistics and tourism. Investment Support: Lesotho and the African Legal Support Facility have agreed on a three-year partnership to provide legal and technical help for priority projects in energy, infrastructure, natural resources and sovereign finance. Industrial Power: The Ha Belo project, due to be commissioned on November 13, will connect an industrial estate with 16 factory shells to the national grid, supporting efforts to spread manufacturing beyond Maseru. Textiles: A seven-year industry roadmap aims to shift Lesotho from basic garment assembly towards higher-value production, using technology, skilled workers and local wool and mohair. The sector has lost jobs and exports in recent years; government targets 70,000 textile jobs by 2033. Farm Finance: Lesotho is urging that a proposed US$1 billion seed-funding plan reach small farmers.

Digital Business: Vodacom Lesotho has launched Starlink-powered satellite internet for companies and public institutions, offering primary or backup connectivity in remote areas and helping businesses stay online during disruptions. Investment Support: Lesotho and the African Legal Support Facility signed a three-year partnership to provide legal and technical help for priority projects in energy, infrastructure, natural resources and public finance. Textiles: A new seven-year roadmap aims to shift the industry into higher-value garments and local wool and mohair processing, targeting 70,000 jobs, more than US$1 billion in annual exports and US$400 million in investment by 2033. Industrial Power: The Ha Belo project will connect an industrial estate with 16 factory shells to the national grid, supporting efforts to expand manufacturing beyond Maseru. Economic Outlook: Regional growth has held up despite global pressures; Lesotho’s inflation eased to 2.6% in August, though the World Bank expects it to rise next year, partly due to food prices.

Business Connectivity: Vodacom Lesotho has launched Starlink-powered satellite internet for businesses and public institutions, offering backup and primary connections for remote areas and sectors including agriculture, finance and logistics. Textile Jobs: A seven-year industry plan aims to lift apparel production into higher-value garments and local wool and mohair processing, targeting more than 70,000 jobs and US$1 billion in annual exports by 2033 as AGOA access buys the sector time. Industrial Power: Prime Minister Sam Matekane is due to commission the Ha Belo grid connection on November 13, bringing reliable electricity to an industrial estate with 16 factory shells and supporting efforts to expand manufacturing beyond Maseru. Public Contracts: WASCO faces PAC scrutiny over a security contract and a smart-meter project, including questions about a bidder-funded China trip for executives. Economic Outlook: Lesotho’s growth has held up amid global pressures, while inflation eased to 2.6% in August; the World Bank expects it to rise to 4.4% in 2027, partly because of higher food prices.

Textiles: Lesotho’s new seven-year industry roadmap aims to shift factories from basic assembly to higher-value garments and local wool and mohair processing. By 2033, it targets 70,000 jobs, more than US$1 billion in annual exports and US$400 million in new investment. The AGOA reprieve offers time to make the transition, as the sector grapples with falling US orders and job losses. Industrial Power: Prime Minister Sam Matekane is set to commission the Ha Belo grid connection on November 13, bringing reliable electricity to an industrial estate with 16 factory shells and supporting efforts to expand manufacturing beyond Maseru. WASCO Procurement: The Public Accounts Committee has questioned WASCO’s smart-meter tender and a China trip paid for by a bidding company, raising concerns about procurement and possible improper influence. Business Finance: Botswana’s BPOPF pension fund will underwrite Letshego’s P800 million share offer as the lender cuts debt and narrows its regional footprint. Economic Outlook: Lesotho’s growth has held up amid global pressures; inflation eased to 2.6% in August, though the World Bank expects it to rise to 4.4% in 2027.

WASCO Procurement: Parliament’s Public Accounts Committee questioned the award of a smart-meter contract after the winning bidder funded a China trip for company executives while bidding. Economic Outlook: Lesotho’s growth is holding up, while inflation eased to 2.6% in August; the World Bank expects it to rise to 4.4% in 2027, partly because of higher food prices. Textiles and Jobs: A new industry strategy targets 70,000 jobs, US$1 billion in annual exports and US$400 million in investment by 2033, with more local processing of wool and mohair. Construction: The Roads Directorate’s expo, set for October 14–16 in Maseru, will connect public agencies, financiers and businesses around infrastructure and construction opportunities. Wool Market: South Africa’s all-merino indicator fell 5.2% at the September 30 sale, a softer start to October for a market relevant to Lesotho’s wool sector.

Public Procurement: Lesotho’s Public Accounts Committee questioned WASCO’s security and smart-meter contracts, citing concerns over tender decisions, a bidder-funded China trip and missing documentation. Jobs and Manufacturing: A new textiles strategy targets more than 70,000 jobs by 2033, with plans to move beyond basic assembly, diversify export markets and process more wool and mohair locally. Economic Outlook: Lesotho’s growth has held up despite regional and global pressures; inflation eased to 2.6% in August, though the World Bank says currency pressure affected Lesotho and neighbours in the second quarter. Digital Economy: A proposed arts and culture roadmap aims to connect local creators with global markets and support sustainable jobs, while addressing weak intellectual-property protection and limited access to markets. Clean Energy: UK-backed funding will support projects across eight African countries, including Lesotho, to scale solutions such as solar cold storage and hybrid mini-grids.

Trade & Payments: Ecobank is moving to connect with China’s yuan payment system, a shift that could simplify settlements and cut conversion costs for African firms trading with China. WASCO Under Scrutiny: Parliament’s Public Accounts Committee challenged the water utility’s security contract and renewed questions over its smart-meter tender, demanding fuller documentation. Textiles & Jobs: Lesotho’s new sector strategy targets 70,000 jobs, US$1 billion in annual exports and US$400 million in investment by 2033; meanwhile, apparel employment has dropped to an estimated 30,000–35,000 amid weak orders and uncertainty over US market access. Economic Outlook: The World Bank says regional growth is holding up. Lesotho’s inflation eased to 2.6% in August but is projected to rise to 4.4% in 2027, with food and fuel costs posing risks. Energy & Creative Industries: UK-backed clean-energy funding includes a project in Lesotho, while the proposed Digital Roadmap aims to help local artists reach global markets and build sustainable jobs.

Creative Economy: Lesotho’s draft Digital Roadmap aims to connect artists with global markets and create jobs, but experts say weak copyright protection and limited access to buyers leave creators vulnerable. Textiles and Jobs: A new sector strategy targets more than 70,000 jobs, US$1 billion in annual exports and US$400 million in investment by 2033, with a shift towards higher-value production and local wool and mohair processing. The industry remains under pressure from falling orders and uncertainty over US market access. Economic Outlook: Growth in Lesotho has held up despite regional and global shocks; inflation eased to 2.6% in August, though higher food and fuel costs could push it up. Public Procurement: Parliament’s Public Accounts Committee has challenged WASCO over security and smart-meter contracts, citing unclear tender records and concerns about a bidder-funded China trip. Energy and Infrastructure: Lesotho is among eight countries set to benefit from UK-backed clean-energy projects, while Phase II of the Highlands Water Project is designed to boost water deliveries and domestic hydropower.

Textiles and Jobs: Lesotho’s new sector strategy targets 70,000 jobs, more than US$1 billion in annual exports and US$400 million in investment by 2033, shifting the industry towards higher-value production and local wool and mohair processing. Economic Outlook: Growth has held up despite global pressures; inflation eased to 2.6% in August, though higher food and fuel costs could push it up next year. WASCO Accountability: The Public Accounts Committee questioned the company’s security and smart-meter contracts, demanding fuller reports. New water connections will cost M3,335.60 from November 1, excluding the meter. Green Business: A US$10 million climate-resilience project will support 80 SMEs developing solutions in water, energy, food and agriculture. UK-backed clean-energy funding also includes projects in Lesotho among 10 initiatives across eight African countries. Creative Economy: A proposed digital roadmap aims to connect local artists with global markets and create sustainable jobs, but investment and stronger protection for creators’ work will be needed.

Water & Utilities: WASCO faces Public Accounts Committee scrutiny over its smart-meter tender to FocalPoint, including company-funded overseas trips for executives while the firm was bidding. New water connections will cost M3,335.60 from November 1. Manufacturing: Apparel accounts for over 80% of manufacturing value added and remains Lesotho’s largest formal private-sector employer, but employment has fallen to 30,000–35,000 amid factory closures and weaker exports. Currency Pressures: The World Bank says the loti lost more than 6% at its weakest in the second quarter as regional currencies came under pressure; much of the depreciation had eased by August. Green Investment: A five-year, US$10 million programme aims to support 80 SMEs developing climate-resilience solutions and green jobs. Trade & Infrastructure: Lesotho and Eswatini plan to expand trade and agricultural cooperation, while Phase II of the Highlands Water Project is designed to boost water deliveries to South Africa and increase Lesotho’s power generation.

Textiles and Jobs: Apparel generates more than 80% of Lesotho’s manufacturing value added and remains its largest formal private-sector employer, but employment has fallen to 30,000–35,000 from 38,000–40,000 in 2023. The government is developing a strategy to attract investment and move into higher-value products as exports to the US and factory jobs suffer. Costs and Utilities: New fuel prices took effect on October 7: petrol 95 is M28.60 a litre and diesel 50 is M34.90. WASCO’s M3,335.60 base connection fee will apply from November 1, adding costs for households and businesses seeking water connections. Currency Pressure: The World Bank says the loti weakened by more than 6% in the second quarter amid global market strains, alongside declines in the rand, Namibia dollar and lilangeni. Green Enterprise: A five-year, US$10 million climate-resilience project aims to support 80 SMEs developing solutions in water, energy, food and agriculture.