Facing a perfect storm of economic headwinds, Lesotho has received a major vote of confidence. The African Development Bank (AfDB) Group has approved a new $209 million Country Strategy Paper designed to pivot the nation toward economic diversification and private sector-led growth.
The strategic investment comes when Lesotho is grappling with the impact of a 15% US tariff on its key apparel exports, the cancellation of a $300 million US aid compact, and a reliance on regional economies. With nearly half its population in poverty and youth unemployment near 39%, this new blueprint is a comprehensive response to build resilience from the ground up.
AFDB’s strategy is built on two core pillars designed to create a more robust and self-sufficient economy:
- Building Sustainable Infrastructure: The plan targets universal electricity access by 2030 through the “Mission 300” program, while also slashing broadband costs to fuel a digital tech boom and expanding clean water access.
- Strengthening Human Capital: The AFDB will support the modernization of government systems and fund training programs to equip 20,000 young people—40% of them women—with vital digital skills for the modern job market.
Moreover, the strategy smartly leverages Lesotho’s assets, notably its abundant water resources, to boost climate-smart agriculture. Furthermore, it focuses on deepening Lesotho’s integration into the African Continental Free Trade Area (AFCFTA). This enhances cross-border links with South Africa to secure a future beyond its borders.
By combining infrastructure development, human capacity building, and a sharp focus on private enterprise, the AFDB’s strategy offers a tangible pathway for Lesotho to transform its challenges into opportunities for inclusive and sustainable growth.
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