AGP Executive Report

Textiles and Apparel: 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. The plan aims to move beyond basic assembly and process more wool and mohair locally, as apparel’s share of manufacturing value added tops 80% and factory employment has fallen. Water and Procurement: WASCO faces scrutiny over its smart-meter tender after executives travelled to China on a trip funded by a bidder. The Public Accounts Committee questioned whether procurement rules were followed. Economic Outlook: Lesotho’s growth has held up amid regional and global pressures. Inflation eased to 2.6% in August, though higher food and fuel costs could push it up next year. Climate and Energy: A US$10 million resilience project will support 80 SMEs developing solutions for water, energy, food and agriculture. Lesotho is also among eight countries set to receive UK-backed clean-energy investment for projects aimed at replacing diesel power. Agriculture: Lesotho urged that a proposed US$1 billion African seed initiative deliver funding directly to small farmers, with grants and flexible financing for climate-vulnerable countries.

Livestock: South Africa says it has supplied 50,000 foot-and-mouth vaccines to Namibia, Eswatini and Lesotho this year, underscoring the need for regional cooperation to protect farming and meat trade. Clean Energy: UK-backed grants will support 10 projects in eight African countries, including Lesotho, to scale solutions such as solar cold storage and reliable power for essential services and businesses. Textiles: 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, with a shift towards higher-value production and local wool and mohair processing. The industry has lost jobs amid falling orders and uncertainty over US market access. Climate Jobs: A five-year, US$10 million project will support 80 SMEs developing climate-resilience solutions in water, energy, food and agriculture. Utilities: WASCO faces scrutiny over its smart-meter tender after the Public Accounts Committee questioned a bidder-funded trip to China taken by company executives.

Clean Energy: UK-backed funding of more than £2 million will support 10 clean-energy projects across Africa, including Lesotho, aiming to scale reliable alternatives to diesel power. Textiles: Lesotho’s new sector strategy targets 70,000 jobs, over US$1 billion in annual exports and US$400 million in investment by 2033. It aims to move beyond basic assembly into higher-value production and local wool and mohair processing as the industry faces falling orders and uncertainty over US market access. Economic Outlook: Regional growth has held up in 2026; Lesotho’s inflation eased to 2.6% in August, though higher food and fuel costs could push it up next year. Industry: Maluti Mountain Brewery has refreshed its brand as Lesotho marks 60 years of independence, linking the change to its heritage and future ambitions. Water and Infrastructure: Phase II of the Lesotho Highlands Water Project is set to expand water deliveries and hydropower capacity. Separately, WASCO’s smart-meter tender faces scrutiny, with MPs questioning a bidder-funded China trip for company executives.

Water and Utilities: The Public Accounts Committee is scrutinising WASCO’s smart-meter tender, questioning trips to China funded by bidder FocalPoint and whether procurement rules were followed. Major Infrastructure: Phase II of the Lesotho Highlands Water Project is set to raise water deliveries to South Africa and expand hydropower capacity, helping meet domestic electricity needs. Construction: The Roads Directorate’s Construction Expo returns to Maseru on October 14–16, bringing contractors, suppliers and financiers together to showcase technologies and skills. Manufacturing: Apparel accounts for more than 80% of Lesotho’s manufacturing value added, but factory closures have cut employment from 38,000–40,000 in 2023 to 30,000–35,000, officials say. Climate and Enterprise: A five-year, US$10 million project will support 80 SMEs developing resilience and green-job solutions in water, energy and agriculture. Economic Pressures: The loti fell by more than 6% during second-quarter currency turbulence, while October fuel-price increases are adding to household and transport costs.

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.