AGP Executive Report

Textiles and Apparel: The sector still generates more than 80% of Lesotho’s manufacturing value added and employs the most people in formal private business, but factory closures have cut jobs to an estimated 30,000–35,000. A new strategy aims to attract investment and move production into higher-value goods. Public Utilities: The Public Accounts Committee questioned WASCO’s decision to accept a China trip funded by a company bidding for its smart-meter project, raising concerns about procurement practices. Currency and Costs: The loti was among currencies that fell by more than 6% in the second quarter amid global market pressure. Fuel prices also rose on October 7, adding to transport and household costs. Climate and Energy: A five-year, US$10 million programme will support 80 Lesotho small businesses developing climate-resilience and green-job projects. Separately, contracts for geotechnical work have advanced planning for the proposed 120MW Oxbow hydropower scheme.

Textiles: Apparel accounts for 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 as factories close and US exports weaken. A new strategy aims to attract investment and move the sector into higher-value products. Public Procurement: Parliament’s Public Accounts Committee questioned why FocalPoint funded WASCO executives’ overseas trips while bidding for the smart-meter project, saying the arrangement raised concerns about possible bribery. Climate Investment: A five-year, US$10 million programme will support 80 SMEs developing climate-resilience solutions and green jobs in water, energy and agriculture. Farming: Lesotho urged that a proposed US$1 billion African seed initiative deliver grants and flexible finance directly to smallholder farmers. Energy: LHDA awarded geotechnical contracts for the proposed 120MW Oxbow hydropower plant, which could strengthen electricity supply and reduce reliance on imports. Business Costs: New fuel prices add pressure on households and transport operators, with petrol 95 rising to M28.60 a litre and diesel to M34.90.

Fuel Costs: New prices taking effect Oct. 7 put petrol at M28.20–M28.60 a litre and diesel at M34.90, adding pressure to transport and household budgets. Climate Resilience: A five-year, US$10 million project will back 80 Lesotho SMEs developing solutions in water, energy, food and agriculture, with green jobs in view. Smallholder Farming: Lesotho urged that a proposed US$1 billion African seed initiative deliver funding directly to small farmers and climate-vulnerable countries. Agriculture: Ha Foso’s new food-storage facility is temporarily holding farming inputs amid a space shortage; grain storage and related jobs will come only once it becomes operational. Regional Trade: Lesotho and Eswatini are looking to expand trade and agricultural cooperation and revive education programmes. Power Infrastructure: LHDA awarded two geotechnical contracts for the proposed 120MW Oxbow hydropower scheme, a step toward improving electricity security and reducing reliance on imports.

Fuel Watch: Motorists in Maseru rushed to fill up ahead of Lesotho’s Oct 7 fuel price changes, with petrol 93 set at M28.20/l and petrol 95 at M28.60/l, while diesel 50 rises to M34.90/l and illuminating paraffin to M25.90/l—raising fears of higher transport and household costs. Agriculture & Food Security: The Ha Foso agricultural food storage facility is temporarily holding farming inputs for summer cropping due to storage shortages, while officials say distribution continues and grain storage will start once the facility is fully operational. Digital & Cultural Sovereignty: As Lesotho marks 60 years, stakeholders are pushing stronger protection for Basotho creative works and better enforcement under updated copyright and industrial property frameworks. 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 of the M400m Inclusive Growth Fund remains low—only M19m disbursed to 24 businesses—prompting plans to boost awareness and communication. Health Logistics: PM Matekane announced a Rapokolana medical drone centre to store and deliver medicines to remote clinics, with first drones expected by June 2027. Defence Support: China’s PLA donated RMB 30m to strengthen Lesotho Defence Force operational readiness.

EU Trade & Livestock Health: The EU has suspended imports of Namibian fresh meat after foot-and-mouth disease fears, threatening a major export market and jobs tied to beef shipments. Transport & Cost Pressure: October fuel price projections in South Africa point to petrol rising by about R3.18 a litre, with freight groups warning of higher operating costs that can feed through to food and other essentials. Lesotho Hydropower Progress: The LHDA has awarded geotechnical contracts for the proposed 120MW Oxbow Hydropower Scheme, moving Phase II planning forward to boost power security. Maseru UN Deal Push: PM Matekane says UN General Assembly meetings produced plans including a medical drone centre for faster delivery of medicines, plus textiles, labour and tourism initiatives. Defence Support: China has donated RMB 30 million to the Lesotho Defence Force to strengthen operational readiness and enable deeper regional peacekeeping roles. Electricity Access: LEWA granted licence exemptions for seven mini-grid projects to expand power to 70 rural villages. Agriculture & Food Security: The government is working to resolve the Lesotho National Dairy crisis after non-payment to farmers, following operator changes. SME Finance Bottleneck: Uptake of the M400 Inclusive Growth Fund remains low, with officials citing limited awareness and planning stronger communication. Connectivity Boost: Econet Telecom Lesotho was recognised by Ookla/Speedtest Verified as the fastest mobile network in Lesotho for 1H 2026. Local Creative Industry: Lesotho fashion brand Thethana has been selected as a finalist for Création Africa, aiming to scale Basotho-inspired slow fashion through incubation. Climate Preparedness: Maseru authorities urged all sectors to plan early for El Niño impacts, including drought and water shortages.

Transport & Logistics: SMSA Africa Logistics Group has expanded its fleet by adding five more Hino 300 diesel-electric hybrid trucks with van bodies after a two-year trial, reporting fuel savings of 19% in urban use and about 14% overall, while also cutting emissions under Euro 6. Energy & Power Infrastructure: The Lesotho Highlands Development Authority awarded two geotechnical investigation contracts for the 120MW Oxbow Hydropower Scheme—R6m for initial geophysical work and about R100m for boreholes, testing and lab analysis—aimed at boosting electricity security as a peaking plant. Rural Electrification: LEWA granted licence exemptions to One Power Lesotho for seven mini-grid projects covering 70 villages, easing licensing while keeping safety and pricing standards in place. Climate & Food Security: Maseru officials urged all sectors to plan for El Niño impacts, including drought and food insecurity, through coordinated district action plans. Telecom & Digital Services: Econet Telecom Lesotho was named Lesotho’s fastest mobile network by Ookla (Speedtest Verified, 1H 2026), as it continues 5G and 4G modernisation. Agriculture & Industry Support: Government’s Inclusive Growth Fund loan facility is struggling—only M19m of M400m disbursed so far—prompting plans to boost awareness among Basotho MSMEs. Health & Innovation: Lesotho’s UN General Assembly outcomes include a medical drone delivery centre (Rapokolana) for medicines, targeting operations by June 2027.

Medical logistics upgrade: PM Ntsokoane Matekane says Lesotho’s UN General Assembly trip in New York will kick off a Rapokolana medical drone centre to store medicines and deliver them by drone to remote clinics, with the first drones expected to operate by June 2027. Defence support: China’s People’s Liberation Army donates RMB 30 million (about US$4.5m) to the Lesotho Defence Force to boost operational readiness and enable deeper peacekeeping participation. Climate planning: Maseru officials urge all departments to prepare for El Niño via a District Action Plan covering drought, water shortages, harvest risks and food insecurity. Rural power push: LEWA grants licence exemptions for seven mini-grid projects by One Power Lesotho, targeting electricity access for 70 villages. Dairy pressure: The Agriculture Minister tells the Senate government is working to resolve the Lesotho National Dairy crisis after farmers were not paid since July, following Denmar’s exit. Digital connectivity win: Econet Telecom Lesotho is named Lesotho’s fastest mobile network by Ookla/Speedtest Verified for 1H 2026, as it expands 5G and strengthens 4G. MSME trade links: A Lesotho MSME workshop ends with a B2B seminar connecting 40 exhibitors to potential buyers under AfCFTA-focused support. Agribusiness risk: Farmers and consumers face higher costs ahead of the planting season as fertiliser and diesel prices rise under El Niño uncertainty.

Mobile Connectivity Win: Econet Telecom Lesotho has been named Lesotho’s fastest mobile network by Ookla (Speedtest Verified) for 1H 2026, as it pushes 5G and strengthens 4G nationwide. Energy Access Push: LEWA granted licence exemptions to One Power Lesotho for seven rural mini-grid projects covering 70 villages, aiming to speed up regulated electricity rollout. MSME Finance Bottleneck: The M400 Inclusive Growth Fund loan facility is struggling with uptake—only M19m disbursed to 24 businesses—while government plans stronger awareness drives. Health Logistics Upgrade: PM Matekane says a medical drone delivery centre (Rapokolana) will store medicines and fly them to remote clinics, with first drones expected by June 2027. Climate Planning: Maseru officials urged all departments to prepare for El Niño via a shared District Action Plan to reduce drought, water shortages, poor harvests and food insecurity. Agriculture Under Pressure: Farmers and consumers face rising risk as fertiliser and diesel costs climb ahead of the planting season, with El Niño threatening yields. Dairy Crisis Watch: The Senate heard government is working to resolve non-payment to dairy farmers and a long-running ownership dispute at Lesotho National Dairy. Trade & Market Linkages: Lesotho hosted an AfCFTA-focused MSME B2B seminar linking 40 exhibitors with potential buyers, targeting better access to markets and finance. Regional Industry Context: China donated RMB 30m to strengthen Lesotho Defence Force readiness, supporting wider peacekeeping participation.

UN Deal Push: PM Ntsokoane Matekane says Lesotho’s UN General Assembly trip in New York will unlock a medical drone delivery centre at Rapokolana, plus cotton and labour agreements, with the first drones expected to operate by June 2027. Defence Funding: China’s PLA has donated RMB 30 million (about M74.5m) to the Lesotho Defence Force to boost operational readiness. Climate Planning: Maseru officials urge all departments to coordinate early for El Niño, building a District Action Plan to cut drought, water shortages and food insecurity impacts. Rural Power Rollout: LEWA has granted licence exemptions for seven mini-grid projects by One Power Lesotho, targeting electricity access for 70 villages. SME Finance Bottleneck: The M400 Inclusive Growth Fund is struggling—only M19m disbursed to 24 MSMEs—so government plans stronger awareness drives. Dairy Dispute: Agriculture Minister Selibe Mochoboroane told the Senate the Lesotho National Dairy crisis is being addressed after farmers went unpaid since July. Connectivity Upgrade: Econet Telecom Lesotho has been named Lesotho’s fastest mobile network by Ookla (Speedtest Verified, 1H 2026). Food Security Pressure: Reports from Semonkong say school meals shrank after US funding cuts, with less maize-meal and cooking oil per pupil. Transport & Logistics Link: Rising fuel and diesel costs are squeezing regional agricultural exports, with higher transport costs weighing on volumes.

Electricity Access: LEWA granted licence exemptions to One Power Lesotho for seven rural mini-grid projects covering 70 villages, aiming to speed up regulated power supply where grid reach is difficult. SME Finance Uptake: The Inclusive Growth Fund’s M400m loan facility is struggling, with only M19m disbursed to 24 businesses; government says limited awareness is being tackled with intensified communication. Dairy Sector Crisis: Agriculture Minister Selibe Mochoboroane told the Senate the Lesotho National Dairy dispute and non-payment to farmers are being addressed after Denmar’s departure. Mobile Connectivity Boost: Econet Telecom Lesotho was named Lesotho’s fastest mobile network by Ookla (Speedtest Verified, 1H 2026), alongside ongoing 4G/5G modernisation. Trade & MSMEs: Lesotho hosted an AfCFTA-focused MSME workshop and B2B seminar linking 40 exhibitors with potential buyers, pushing market access beyond domestic sales. School Feeding Shock: After US aid cuts, GroundUp reports smaller, less nutritious meals in Semonkong schools, with reduced maize-meal and cooking oil supplies; the education ministry says it will investigate. Science & Youth: Eskom Expo International Science Fair opened with Lesotho among international participants, highlighting bursaries and pathways for young researchers. Regional Cost Pressure: South Africa’s higher transport and fuel costs are weighing on agricultural exports to neighbouring markets, including wheat flour declines to several countries.

LEWA Mini-Grids: Lesotho Electricity and Water Authority (LEWA) granted licence exemptions to One Power Lesotho for seven rural mini-grid projects covering 70 villages, aiming to speed electricity access while keeping pricing, safety and standards regulated. Inclusive Growth Fund Uptake: Government says only M19m of the M400m Inclusive Growth Fund loan facility has been disbursed so far, with limited awareness blamed; officials plan to intensify communication as applications move slowly through review stages. Lesotho National Dairy Crisis: Agriculture Minister Selibe Mochoboroane told the Senate the government is working to resolve non-payment to farmers and a long-running ownership dispute after South African operator Denmar left the plant. Mobile Network Benchmark: Econet Telecom Lesotho was named Lesotho’s fastest mobile network by Ookla (Speedtest Verified) for 1H 2026, as it continues 5G expansion and 4G strengthening. AfCFTA MSME Push: A Maseru B2B seminar linked about 40 MSMEs to potential buyers as part of a workshop helping local businesses use regional trade agreements and AfCFTA opportunities. School Feeding Shock: GroundUp reports that after US funding cuts, Semonkong pupils are getting smaller, less nutritious meals, with maize-meal down sharply per pupil and cooking oil supplies also reduced. Transport Cost Pressure on Food Exports: SARB says higher fuel-driven transport costs are weighing on South African agricultural exports to neighbours, raising pressure across the food supply chain. Science & Skills: Eskom Expo International Science Fair opened with Lesotho among international participants, spotlighting research pathways for young scientists. Infrastructure for LHWP: LHDA completed a R2.3bn access road network for LHWP Phase II, designed to support Polihali Dam and transfer tunnel construction and ease heavy freight movement.

Rural Power Push: LEWA has granted licence exemptions to One Power Lesotho for seven mini-grid projects covering 70 villages, aiming to speed electricity access while keeping safety and pricing regulation in place. SME Finance Bottleneck: The M400 Inclusive Growth Fund is struggling with uptake—only M19m disbursed to 24 businesses—prompting government to intensify awareness and communication to Basotho MSMEs. Agriculture Under Pressure: Food prices may rise further as farmers face higher fertiliser and diesel costs ahead of the 2026/27 planting season, with El Niño-linked drought risk adding financial strain. Dairy Dispute: Lesotho’s agriculture minister told the Senate the Lesotho National Dairy crisis is being addressed after non-payment to farmers since July, following Denmar’s exit and an ownership dispute. Mobile Connectivity Win: Econet Telecom Lesotho was named Lesotho’s fastest mobile network by Ookla (Speedtest Verified, 1H 2026), as it continues 5G and 4G modernisation. Trade & Jobs Focus: A Maseru workshop linked Lesotho MSMEs to buyers under AfCFTA, while also tackling finance and market access. Transport Cost Shock: Higher fuel-driven transport costs in South Africa weighed on regional agricultural exports, hitting items like wheat flour and vegetable products. Security Spillover: A Lesotho migrant workers association pleaded for peace after 18 Basotho-linked deaths in a South African tavern shooting, underscoring violence risks for workers.

LEWA Rural Power Push: Lesotho Electricity and Water Authority (LEWA) granted One Power Lesotho seven licence exemptions for mini-grid projects covering 70 villages, aiming to speed rural electrification while keeping pricing, safety and standards regulated. Inclusive Growth Fund Slowdown: Government says only M19m of the M400m Inclusive Growth Fund loan facility has been disbursed, with limited awareness blamed for weak uptake; officials plan stronger communication as applications move through review stages. Dairy Crisis in Focus: Agriculture Minister Selibe Mochoboroane told the Senate the Lesotho National Dairy dispute and non-payment to farmers are being addressed after South African operator Denmar left the plant. Digital Connectivity Boost: Econet Telecom Lesotho was named Lesotho’s fastest mobile network by Ookla (Speedtest Verified, 1H 2026), as it continues 5G and 4G modernisation. MSME Trade Linkages: A Maseru workshop on AfCFTA opportunities ended with a B2B seminar connecting 40 MSMEs to potential buyers, targeting both market access and finance. Infrastructure for Industry: LHDA completed a R2.3bn, 166km access road network for Phase II of the Lesotho Highlands Water Project, easing heavy transport to Polihali Dam and tunnel sites. Regional Context: South Africa’s Wedela tavern shooting killed 18, with reports linking violence to illegal mining gangs that also involve Basotho nationals.

Dairy Dispute in Focus: Agriculture Minister Selibe Mochoboroane told the Senate the Lesotho National Dairy crisis is being addressed, after farmers went unpaid since July following South African operator Denmar’s exit, while ownership and management questions remain under discussion. Digital Connectivity Boost: Econet Telecom Lesotho was named Lesotho’s fastest mobile network by Ookla (Speedtest Verified) for 1H 2026, as the operator expands 5G and strengthens 4G nationwide. School Feeding Hit: After US aid cuts to the Bokamoso Ba Bana programme, GroundUp reports smaller portions and less nutritious meals in Semonkong primary schools, with reduced maize-meal and cooking oil supplies and delayed pay for cooks. MSME Trade Push: Lesotho hosted an AfCFTA-focused MSME workshop and B2B seminar linking about 40 exhibitors to potential buyers, targeting market access and export readiness. Rural Power Rollout: LEWA granted seven mini-grid licence exemptions to One Power Africa for projects across seven rural communities, aiming to extend electricity where grid reach is limited. Infrastructure for Industry: LHDA completed a R2.3bn access road network for Phase II of the Lesotho Highlands Water Project, improving heavy-transport routes to support Polihali Dam construction.

School Feeding Shock: Lesotho’s school meals in Semonkong have shrunk after US funding cuts, with maize-meal down 54% per pupil and cooking oil halved, prompting an education ministry probe. Agricultural Input Friction: Kueneng’s chief accuses MPs and civil servants of sabotaging Matekane’s village input programme by steering farmers to their own businesses. MSME Trade Push: A Maseru workshop and B2B seminar linked about 40 MSMEs to potential buyers under AfCFTA, focusing on finance, standards and export readiness. Rural Power Expansion: LEWA granted seven mini-grid licence exemptions to One Power Africa for communities including Ketane, Tosing, Tlhanyaku, Sehlaba-Thebe, Matsoaing, Thaba-Tseka and Berea. Digital Leadership: Lesotho joins Commonwealth Digital Nexus discussions in London on AI-driven digital transformation and inclusive ecosystems. Mobile Connectivity Win: Econet Telecom was named Lesotho’s fastest mobile network by Ookla based on 2026 consumer testing. Regional Industry Moves: JAC Motors expands its South African T9 bakkie line with a Black Edition model, while Varun Beverages drops a South African dairy deal and heads to arbitration. Water Infrastructure Watch: Lesotho-linked regional demand is in focus as SA and Zimbabwe discuss a US$500m dam plan to supply water for an industrial zone.

Vehicle & Manufacturing: JAC Motors expanded its local T9 bakkie range with two new T9 2.0L CTi Black Edition 4x4 models (Hunter and Super Lux), priced from R549,900 to R689,900, leaning into a rugged “lifestyle workhorse” look. MSMEs & Trade: Lesotho hosted a three-day workshop on AfCFTA opportunities, ending with a B2B seminar that linked about 40 MSMEs to potential buyers and focused on market access, standards and export procedures. Energy Access & Infrastructure: LEWA granted seven licence exemptions to One Power Africa to install mini-grids in seven rural communities, aiming to extend electricity where grid reach is limited. Water & Industry: South Africa and Zimbabwe are discussing a US$500m Thuli Moswa dam to supply water to the Musina-Makhado industrial hub, with feasibility talks ongoing. Digital Connectivity: Econet Telecom Lesotho was named the country’s fastest mobile network by Ookla, based on Speedtest results in the first half of 2026. Security & Cross-Border Crime: South Africa’s Wedela tavern shooting near Johannesburg rose to 18 deaths, with at least two victims identified as Lesotho nationals, amid wider concerns about illegal mining-linked violence. Agriculture Heritage: FAO convened 16 African countries, including Lesotho, to build capacity for recognising agricultural heritage systems and preparing conservation action plans.