AGP Executive Report

Fuel & cost pressure: South Africa’s projected October fuel hikes could add about R3.18/l to 95 unleaded, with freight costs expected to rise 4%–6%, feeding into higher food and living costs. Energy infrastructure: Lesotho’s LHDA has awarded geotechnical contracts for the 120MW Oxbow Hydropower Scheme, including a R6m phase-one study and a ~R100m borehole and lab testing phase. Health logistics: Government says talks with Zipline are advanced for a Rapokolana medical drone hub, with the first drones expected in the second half of 2027 after environmental assessments. Digital economy: MICSTI and UNDP concluded validation of Lesotho’s Electronic Transactions and Communications Bill 2026, aimed at strengthening digital trust and enabling cross-border digital trade. Rural electrification: LEWA granted licence exemptions for seven mini-grid projects to expand power to 70 villages. Business finance: Letshego plans to raise P800m via a rights offer on the BSE, backed by full underwriting from BPOPF. Transport & jobs: Lesotho’s youth unemployment remains a major concern as the country marks 60 years of independence, with new reporting highlighting the scale of joblessness among young people.

Natural diamonds comeback: South Africa’s alluvial diamond sector is being urged to “come back” as operators dwindle and marketing becomes key in a market increasingly shaped by synthetics. Regional sport & youth: MTN’s Siyabhampisa 3×3 Basketball Series in Eswatini used the AUSC Region 5 Youth Games torch to spotlight youth empowerment across Southern Africa. Lesotho at 60: King Letsie III and King Mswati III used Diamond Jubilee celebrations to underline Lesotho–Eswatini ties and Lesotho’s role in regional political and economic integration. Jobs and youth unemployment: As Lesotho marks 60 years, reporting highlights high unemployment among young people and the strain on graduates entering a weak labour market. Digital economy lawmaking: MICSTI and UNDP concluded validation of Lesotho’s Electronic Transactions and Communications Bill 2026 to strengthen digital trust and enable cross-border digital trade. Health logistics investment: Government says talks with Zipline are advanced for a medical drone delivery hub at Rapokolana, targeting operations in 2H 2027. Energy access: LEWA granted mini-grid licence exemptions for seven rural projects to expand electricity to 70 villages. SME finance bottleneck: Uptake of the M400 Inclusive Growth Fund loan facility remains very low, with government blaming limited awareness and planning stronger communication. Telecom performance: Econet Telecom Lesotho was named Lesotho’s fastest mobile network by Ookla (Speedtest Verified, 1H 2026). Tax journalism push: Revenue Services Lesotho trained journalists to improve reporting on taxation and public finances, including responsible AI use.

Youth Jobs & Independence Milestone: As Lesotho marks 60 years, reporting highlights the scale of unemployment pressure, with the Bureau of Statistics pointing to 236,576 people out of work and youth joblessness still severe. Inclusive Growth Fund (IGF) Loan Uptake: Government says only M19m of the M400m IGF loan facility has been disbursed so far, blaming low awareness and slow processing, even as interest exists among MSMEs. Health Delivery by Drone: PM Matekane says Lesotho is advancing plans with Zipline for a medical drone hub at Ha Rapokolana, aiming for the first drones in the second half of 2027 to speed medicine access. Defence Funding from China: China’s PLA donates RMB 30m to strengthen the Lesotho Defence Force’s operational readiness. Digital Law Progress: MICSTI and UNDP conclude validation of Lesotho’s Electronic Transactions and Communications Bill 2026 to boost digital trust and support cross-border trade. Electricity Access via Mini-grids: LEWA grants licence exemptions for seven mini-grid projects to expand power to 70 rural villages. Telecom Business Win: Econet Telecom Lesotho is named Lesotho’s fastest mobile network by Ookla (Speedtest Verified, 1H 2026). Agriculture Dispute & Inputs: A Senate update says the Lesotho National Dairy has not paid farmers since July after Denmar’s exit, while a chief alleges implementation sabotage by civil servants and MPs in the village inputs push. Sports/Business Tech Spotlight: Vetkoek Studios’ taxi game Taxi Ranked lands as a top-15 finalist for Création Africa incubation, showing growing local creative enterprise momentum.

Youth Unemployment at 60: As Lesotho marks 60 years of independence, a new report highlights the scale of joblessness, with statisticians counting 236,576 people out of work and nearly half of job-seekers aged 15–24 unable to find anything. Governance & Business Pressure: Publisher Phafane Nkotsi alleges the State targeted him and his companies, describing unpaid bills, lockouts and threats as part of a plan to “break him.” UN Deal Push: PM Matekane says agreements reached at the UN General Assembly will drive projects including a Rapokolana medical drone hub, plus cotton, labour and tourism initiatives. Defence Funding: China donates RMB 30 million to boost the Lesotho Defence Force’s operational readiness. Digital Economy Law: MICSTI says Lesotho has concluded validation of the Electronic Transactions and Communications Bill 2026 to strengthen digital trust and support cross-border trade. Energy Access: LEWA grants licence exemptions for seven rural mini-grid projects to expand power to 70 villages. SME Finance Bottleneck: Uptake of the M400 Inclusive Growth Fund loan facility remains weak, with only M19m disbursed so far. Telecom Boost: Econet Telecom Lesotho is named the fastest mobile network in the country by Ookla.

Lesotho’s Inclusive Growth Fund (IGF) under pressure: Government has disbursed only about M19m of the M400m IGF loan facility, with uptake held back by limited awareness among Basotho and slow processing of applications. Digital law for trust: MICSTI and UNDP concluded a validation workshop for Lesotho’s Electronic Transactions and Communications Bill 2026, aimed at strengthening digital trust, security, and cross-border digital trade. Health logistics upgrade: Prime Minister Sam Matekane says talks with Zipline are advanced, with an Environmental Impact Assessment underway for a drone hub in Thaba Putsoa and plans to launch the programme in the second half of next year. Rural power expansion: LEWA granted licence exemptions for seven One Power Lesotho mini-grid projects to serve 70 villages, simplifying licensing while keeping regulation on pricing, safety and standards. MSMEs push into AfCFTA: Lesotho hosted a B2B seminar linking about 40 MSMEs with potential buyers as part of a workshop on regional trade opportunities under AfCFTA. Telecom milestone: Econet Telecom Lesotho was named Lesotho’s fastest mobile network by Ookla (Speedtest Verified) for 1H 2026, alongside ongoing network modernisation. Food security hit by US school-meal cuts: Reporting shows smaller portions and less nutritious meals at Semonkong primary schools after US funding ended, prompting an education ministry investigation. Corruption and governance debate: Speaker Tlohang Sekhamane warned Basotho may reject democracy if it doesn’t deliver bread, jobs and curb corruption, amid an electoral system review dialogue.

Digital Economy & Law: Lesotho has concluded stakeholder validation of its Electronic Transactions and Communications Bill 2026, aiming to strengthen digital trust, security and interoperability for cross-border digital trade. Health Logistics: Government is in advanced talks with Zipline to use drones to deliver medicines to health facilities, with an Environmental Impact Assessment planned for Ha Rapokolana and the first flights expected in the second half of next year. Energy Access: LEWA granted licence exemptions for seven rural mini-grid projects under One Power Lesotho, targeting electricity expansion across 70 villages. SME Finance Uptake: The Inclusive Growth Fund’s M400m loan facility is struggling with uptake—only about M19m disbursed so far—prompting plans to intensify public awareness and simplify access for MSMEs. Agriculture & Food Security: Agriculture Minister Selibe Mochoboroane told the Senate the Lesotho National Dairy crisis is being addressed after farmers reported non-payment since July, following Denmar’s exit and an ownership dispute. Telecoms: Econet Telecom Lesotho was named Lesotho’s fastest mobile network by Ookla (Speedtest Verified) for 1H 2026, alongside ongoing 5G and 4G modernisation. Business & Trade: Lesotho hosted a B2B seminar linking MSMEs to potential buyers under AfCFTA opportunities, with entrepreneurs showcasing products and learning export procedures and compliance. Media & Tax Capacity: Revenue Services Lesotho trained journalists on tax reporting, including how to use AI responsibly to explain public finances to Basotho. Transport Costs Shock (Regional): South Africa’s SARB links higher fuel-driven transport costs to weaker regional agricultural exports, including declines in wheat flour shipments to neighbouring countries.

Digital Policy & Trade: Lesotho has concluded stakeholder validation of its Electronic Transactions and Communications Bill 2026, aimed at boosting digital trust, security and interoperability to support cross-border digital trade. Health Logistics: Government is in advanced talks with Zipline to use drones to deliver medicines to health facilities, with an Environmental Impact Assessment planned for Ha Rapokolana and a first launch expected in the second half of next year. Rural Power Access: LEWA granted licence exemptions to One Power Lesotho for seven mini-grid projects covering 70 villages, easing licensing while keeping pricing, safety and standards regulated. SME Finance Uptake: The Inclusive Growth Fund loan facility is struggling, with only about M19m disbursed out of M400m so far due to low awareness; government plans to intensify communication as applications move slowly. Agriculture & Food Security: Farmers and consumers face pressure ahead of the planting season as higher fertiliser and diesel costs, linked to global oil prices and El Niño risk, raise the stakes for yields and working capital. Telecom Performance: Econet Telecom Lesotho was named Lesotho’s fastest mobile network by Ookla (Speedtest Verified) for 1H 2026, as it continues 5G and 4G modernisation. Media & Accountability: Lesotho media houses demand an independent inquiry into the abduction and assault of Newsday editor Kananelo Boloetse, saying no one has been held accountable. Business & Markets: A Lesotho MSME workshop on AfCFTA opportunities ended with a B2B seminar connecting 40 exhibitors to potential buyers, targeting both finance and market access.

Digital Lawmaking: Lesotho’s MICSTI, with UNDP, has concluded a two-day validation of the Electronic Transactions and Communications Bill 2026, aiming to boost digital trust, security and interoperability for cross-border e-trade. Health Logistics: Prime Minister Sam Matekane says government is in advanced talks with Zipline to use drones for medicine delivery, with an EIA planned for Ha Rapokolana and the first drones expected in the second half of next year. Rural Power: LEWA has cleared the way for seven rural mini-grid projects via licence exemptions for One Power Lesotho, targeting electricity access for 70 villages while keeping projects within regulation. Business Finance: The Inclusive Growth Fund’s M400m loan facility is struggling with uptake—only M19m disbursed to 24 businesses—while government plans to intensify awareness and push applications through review. Telecom Performance: Econet Telecom Lesotho has been named Lesotho’s fastest mobile network by Ookla (Speedtest Verified) for 1H 2026, as it expands 5G and strengthens 4G. Anti-Corruption at Borders: South Africa’s Border Management Authority says corruption crackdowns must extend beyond land borders to airports and seaports, with information-sharing across key agencies. Food Security Shock: GroundUp reports Lesotho school meals in Semonkong have shrunk and become less nutritious after US funding cuts, prompting an education ministry investigation. Agriculture Dispute: A principal chief alleges civil servants and MPs are undermining village-based input distribution by steering farmers to their own businesses. MSME Trade Linkages: Lesotho hosted an MSME workshop and B2B seminar under AfCFTA, linking about 40 exhibitors with potential buyers and focusing on market access and export readiness.

Telecom Win: Econet Telecom Lesotho has been named Lesotho’s fastest mobile network by Ookla, based on Speedtest Verified results for 1H 2026, as the operator pushes 5G and 4G modernisation. Food Security Shock: Lesotho’s school feeding programme in Semonkong is delivering smaller, less nutritious meals after US funding was cut, with maize-meal down 54% per pupil and cooking oil halved; the education ministry says it will investigate. Agriculture Accountability: Agriculture Minister Selibe Mochoboroane told the Senate the government is working to resolve the Lesotho National Dairy crisis, including non-payment to farmers since July after Denmar’s exit and a long-running ownership dispute. Tax & Media Skills: Revenue Services Lesotho trained journalists on tax reporting, stressing AI as a tool that must not replace ethics, judgement and verification. MSME Trade Push: A Lesotho MSME workshop on AfCFTA opportunities ended with a B2B seminar linking about 40 exhibitors to potential buyers. Rural Power Access: LEWA granted seven mini-grid licence exemptions to One Power Africa for rural communities, aiming to expand electricity where grid reach is limited. Dairy Disputes: Mochoboroane also faced questions on the dairy plant’s ownership, management and the Canada-linked agreement that established it. Digital Health Leadership: UNFPA appointed Ghanaian innovation professional Sydney Hushie as Chief of its Digital Centre of Excellence, with pilots planned for Lesotho among other countries. Journalism Under Pressure: Lesotho media houses called for an independent inquiry into the abduction and assault of Newsday editor Kananelo Boloetse, saying no one has been held accountable.

School feeding squeeze in Lesotho: After US funding cuts, GroundUp reports smaller portions and less nutritious meals at Semonkong primary schools, with maize-meal down 54% per pupil and cooking oil halved; the education ministry says it will investigate. MSME trade push: Lesotho hosted a B2B seminar linking about 40 MSMEs to potential buyers as part of a workshop on AfCFTA opportunities, with government citing market and finance gaps. Rural power expansion: LEWA granted One Power Africa seven licence exemptions to install mini-grids in seven communities, aiming to bring electricity where grid access is limited. Agriculture input delivery row: Kueneng’s principal chief accuses MPs and civil servants of sabotaging Prime Minister Sam Matekane’s village-based input programme by steering farmers to their own businesses. Media freedom pressure: Ten Lesotho media houses demand an independent inquiry into the abduction and assault of Newsday editor Kananelo Boloetse, alleging stalled accountability. Regional business context: South Africa’s Varun Beverages scrapped its Crickley Dairy deal and moved to arbitration, while JAC Motors expanded its T9 Black Edition bakkie line-up. Digital connectivity win: Econet Telecom Lesotho was named the country’s fastest mobile network by Ookla.

AfCFTA & MSMEs: Lesotho’s MSMEs are getting a push to trade across Africa, with a Maseru workshop ending in a B2B seminar that linked 40 exhibitors to potential buyers and tackled the two big hurdles: finance and market access. Rural power rollout: LEWA has granted seven licence exemptions to One Power Africa to install mini-grids in seven rural communities, aiming to expand electricity where the main grid may not reach soon. Agribusiness skills: Berea’s agriculture ministry trained farmers on fishery project management, positioning fish farming as a livelihood option and pointing to export potential under AGOA. Media freedom & accountability: Ten Lesotho media houses are demanding an independent Commission of Inquiry into the abduction and assault of Newsday editor Kananelo Boloetse, alleging stalled accountability and pressure on the investigation. Digital connectivity: Econet Telecom Lesotho has been named Lesotho’s fastest mobile network by Ookla, citing consumer Speedtest results in the first half of 2026. Policy & governance: A South Africa tracker says the GNU’s focus has shifted from making promises to implementing them, with performance still low but improving.

AfCFTA & MSMEs: Lesotho’s three-day workshop on leveraging regional trade agreements and the AfCFTA kicked off in Maseru with a B2B seminar that matched about 40 MSMEs with potential buyers, as officials stressed the twin hurdles of finance and market access. Rural Power Expansion: LEWA granted seven mini-grid licence exemptions to One Power Africa for projects across seven rural communities, aiming to bring electricity where grid reach is limited. Youth Enterprise Support: The Lesotho Enterprise Assistance Programme (LEAP) is backing young entrepreneurs with funding, training, equipment and mentorship to turn ideas into income and jobs. Water & Infrastructure: LHDA says it has completed a R2.3bn, 166km access road network for Phase II of the Lesotho Highlands Water Project, designed to support construction of the Polihali Dam and tunnel. Media & AI Skills: Journalists in Maseru were urged to use AI to improve reporting efficiency while keeping ethics and verification central. Mobile Connectivity: Econet Telecom won Ookla’s “Lesotho’s Fastest Mobile Network” award based on Speedtest results from the first half of 2026.

Lesotho business & economy: Lesotho’s Econet Telecom has been named the country’s fastest mobile network by Ookla, a boost for the telecom sector as Lesotho pushes digital growth. Energy access: LEWA has granted seven mini-grid licence exemptions to One Power Africa for rural communities, aiming to expand electricity where grid reach is limited. SME & trade: Lesotho is running an MSME workshop on AfCFTA opportunities to help small businesses tap regional and continental markets. Youth enterprise: The LEAP programme is supporting young Basotho entrepreneurs with funding, training and mentorship to move from ideas to income. Agribusiness skills: Berea farmers received training to build fishery project management skills and explore the fish value chain. Media & tax capacity: Journalists were urged to use AI responsibly in tax journalism, keeping ethics and verification central. Regional context: South Africa’s crime crisis deepened with a tavern shooting near Johannesburg that killed 18, including two Lesotho nationals.

Telecom Benchmark: Econet Telecom Lesotho has been named Lesotho’s fastest mobile network by Ookla, based on Speedtest consumer results from the first half of 2026—an endorsement the operator says validates its network investment and will drive further expansion and modernization. MSME & Trade Access: Lesotho is set to host an AfCFTA-focused MSME workshop in Maseru, urging small businesses to look beyond the domestic market and connect with regional buyers, wholesalers and retailers to sell across Africa. Youth Enterprise Support: The Lesotho Enterprise Assistance Programme (LEAP) is backing young Basotho entrepreneurs with funding, training, equipment and mentorship, highlighting how spaza shop and livestock beneficiaries are moving from early-stage ideas to income and jobs. Regional Water Infrastructure: South Africa and Zimbabwe are discussing a US$500m Thuli Moswa dam to supply water to the Musina-Makhado Special Economic Zone in Limpopo, with feasibility talks ongoing and no start timeline yet. Security Spillover: South Africa’s Wedela tavern shooting death toll rose to 18, with at least two victims identified as Lesotho nationals, underscoring how cross-border communities can be pulled into regional violence.

Regional Security Spillover: South Africa’s Wedela township tavern shooting near Johannesburg has killed 18 after another victim died in hospital; police say at least two of the dead are Lesotho nationals, with the attack linked to gang rivalry around illegal gold mining. Cross-Border Water & Industry: South Africa and Zimbabwe are discussing a US$500m (R8.2bn) Thuli Moswa dam to supply water to Limpopo’s Musina-Makhado Special Economic Zone, with feasibility talks ongoing and no start date set. Lesotho Trade & MSMEs: Lesotho is hosting a workshop urging MSMEs to use AfCFTA opportunities to sell across Africa, with UN partners supporting capacity-building for regional buyers and retailers. Monetary Policy: The Central Bank of Lesotho raised its interest rate by 25 basis points to 7.00% to rein in inflation amid higher energy, food and transport risks. Infrastructure & Jobs: LHDA says it has completed a R2.3bn access road network for LHWP Phase II, improving logistics for the Polihali Dam and tunnel works. Youth Entrepreneurship: LEAP is backing young Basotho entrepreneurs with funding, training and mentorship, highlighting pathways from small start-ups to income and employment. Digital & Governance: Lesotho is in London for CTO@125 events on digital transformation and AI, as the country pushes its national digital agenda.

Lesotho-AfCFTA Trade Push: Lesotho’s Ministry of Trade, with UN partners, will run a three-day workshop to help MSMEs and buyers understand how to sell across Africa under AfCFTA, aiming to close the gap between opportunity and uptake. Monetary Policy: The Central Bank of Lesotho raised its interest rate by 25 basis points to 7.00% to rein in inflation, citing risks from energy costs, food impacts from bad weather, and higher fertiliser and transport costs. Public-Private Reform Bottlenecks: Prime Minister Sam Matekane says nine Public-Private Dialogue reform areas are still not started or stuck awaiting Cabinet action, calling for faster delivery. Climate to Jobs Agenda: Lesotho is urged to turn climate ideas into real businesses as a new USD$10m PARS project kicks off, targeting youth entrepreneurship and clean jobs. Regional Water Investment: South Africa and Zimbabwe are discussing a $500m cross-border dam plan to supply water to the Musina-Makhado SEZ, reflecting growing pressure to secure water for industry. CAFI Progress Check: A World Bank mid-term review rates Lesotho’s CAFI project “satisfactory” in most areas, though it flags delays and slower access to finance. Security Spillover from SA: A mass tavern shooting near Johannesburg left the death toll at 18, including at least two Lesotho nationals, with police linking the violence to gang rivalry around illegal mining. Sports & Business Angle: Lesotho’s football and creative sectors keep moving—players’ welfare disputes in Kenya’s AFCON camp mention Lesotho matches, while Lesotho’s Spring Music Conference focuses on funding and policy gaps for the creative economy.