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Lesotho

Lesotho is a landlocked country in southern Africa, entirely surrounded by South Africa, making it one of only three enclaved sovereign states in the world. The capital and largest city is Maseru, situated on the Caledon River along the western border. With a population of approximately 2.3 million, Lesotho is known as the Kingdom in the Sky owing to its high elevation, with the lowest point in the country at 1 400 metres above sea level. The economy is heavily dependent on water exports, textile manufacturing, subsistence agriculture and remittances from migrant workers in South Africa. Lesotho's most significant economic asset is its abundant water resources, which are harnessed through the Lesotho Highlands Water Project, a large-scale infrastructure scheme that supplies water to South Africa's Gauteng province and generates hydroelectric power and royalty revenue for Lesotho. The country is a constitutional monarchy, with King Letsie III as head of state and a prime minister leading the government. Lesotho uses the loti as its currency, which is pegged at par to the South African rand, and both currencies circulate freely within the country. The nation is a member of the Southern African Development Community, the Southern African Customs Union and the Common Monetary Area. Lesotho faces significant development challenges, including high rates of poverty, unemployment and HIV prevalence, alongside vulnerability to climate change and water security issues. The country gained independence from Britain in 1966, having previously been the British protectorate of Basutoland.

Lesotho Updates


DBSA chief economist Zeph Nhleko
Opinion: Defining the low investment, low economic growth challenge in South Africa
29th May 2026

In this article by Development Bank of Southern Africa (DBSA) chief economist and group executive Zeph Nhleko, he highlights infrastructure investment as the central lever to break South Africa’s... 


Department lays the groundwork for South Africa’s future water security
29th May 2026 By: Natasha Odendaal

The Department of Water and Sanitation (DWS) continues to advance national bulk water and national resource projects across South Africa. During her Budget Vote speech this month, Water and... 


Inflation impact likely in emerging markets owing to US-Iran war – BMI
26th May 2026 By: Schalk Burger

Financial market research company BMI expects oil prices to average $90/bbl this year, and to remain higher for longer, which will, in turn, feed into rising inflation. This will lead to pressure... 


Xylem Announces New Applied Water Distribution Structure for Southern Africa Region
25th May 2026

What: (Virtual Showroom) Xylem, a global leader in water technology, announces a strategic update to its operating model in Southern Africa. Effective June 1, 2026, AQS Liquid Transfer PTY Ltd,... 


Health
Secretive deals, aggressive demands are new US foreign aid tactics
22nd May 2026 By: Bloomberg

On a Friday last November, government officials representing Lesotho, a mountainous enclave in eastern South Africa, sat down in the capital Maseru for three hours of negotiations with Trump... 


South Africa, Botswana ink water quality, aquatic invasive species MoA
21st May 2026 By: Natasha Odendaal

South Africa and Botswana are teaming up to monitor water quality and manage invasive aquatic species in the upper Limpopo river basin. Through a memorandum of agreement (MoA), the two countries... 


Ramateu Monyokolo
Municipalities can no longer treat their water systems as cash cows
20th May 2026 By: Rebecca Campbell

In South Africa, the water utilities and systems are treated as stepchildren, by the various levels of government, affirmed Association of Water and Sanitation Institutions of South Africa (Awsisa)... 


A generic image of a diamond
Gem Diamonds reports lower sales volumes, but higher prices for the first quarter
20th May 2026 By: Lumkile Nkomfe

Diamond miner Gem Diamonds recorded revenue of $32.1-million for the quarter ended March 31, supported by the sale of large, high-value diamonds recovered at its Letšeng mine, in Lesotho. During... 


Cluckin’ quotas
15th May 2026 By: Riaan de Lange

In the Government Gazette of April 30, the South African Revenue Service (Sars) gave notice of the retrospective increase, effective from April 1, of the annual quota for frozen bone-in cuts of the... 


Image of Vodacom Group CEO Shameel Joosub
Vodacom starts Vision 2030 strong as double-digit earnings reported for year
11th May 2026 By: Natasha Odendaal

JSE-listed Vodacom Group on Monday said it has had a strong start to its Vision 2030 strategy, after delivering double-digit earnings growth for the year ended March 31. During the year under... 


BOTH ENDS: Full-scale tunnelling is now well underway at the Lesotho Highlands Water Project Phase II after the official launch of a second tunnel boring machine (TBM). The Polihali TBM, which technically started work in January, joins the Katse TBM, which was launched in February 2025, to drill – from both ends – through the 38.5 km-long tunnel connecting Polihali and Katse dams, in the Maluti mountains of Lesotho. The second TBM was officially unveiled on April 20.
BOTH ENDS
8th May 2026

Full-scale tunnelling is now well underway at the Lesotho Highlands Water Project Phase II after the official launch of a second tunnel boring machine (TBM). The Polihali TBM, which technically... 


Longest Lesotho bridge opens to secure LHWP Phase II access routes
8th May 2026 By: Natasha Odendaal

In a landmark milestone, the Senqu bridge, the longest in Lesotho and a critical component of the Lesotho Highlands Water Project (LHWP) Phase II, has officially been inaugurated. The inauguration... 


Illegal immigration march
African countries warn citizens of xenophobic attacks in South Africa
7th May 2026 By: Reuters

African countries including Kenya, Malawi, Lesotho and Zimbabwe have warned migrants in South Africa to be cautious and remain indoors due to attacks targeting foreigners, and Ghana has lobbied the... 


Could Agoa extension be a win-win for all parties on critical minerals front?
Could Agoa extension be a win-win for all parties on critical minerals front?
24th April 2026 By: Tracy Klückow

The new “deal-making” approach in Washington has some suggesting that  the extended African Growth and Opportunity Act (Agoa) is likely to be used as leverage to secure the supply of unbeneficiated... 


Image of Senqu bridge
Lesotho Highlands Water Project – Phase II – update
24th April 2026 By: Sheila Barradas

The LHDA has reported two major Phase II milestones this April.  


LHWP’s Senqu bridge officially inaugurated
LHWP’s Senqu bridge officially inaugurated
22nd April 2026 By: Natasha Odendaal

The longest bridge in Lesotho, and a critical component of the Lesotho Highlands Water Project (LHWP) Phase II, is officially being inaugurated by King Letsie III, along with South African... 


Image of Polihali TBM
Second tunnel drilling machine joins first in excavating 38 km Polihali water transfer tunnel
20th April 2026 By: Natasha Odendaal

A second tunnel boring machine (TBM) is steadily drilling its way through the 38.5-km-long tunnel connecting Polihali and Katse dams, in the Maluti mountains, as the Lesotho Highlands Water Project... 


Image of a map of Africa, a doctor and company logos
Extending satellite connectivity across Africa
16th April 2026

Pan-African telecommunications and network services provider Paratus Group has launched a solution aimed at delivering satellite connectivity to organisations based in remote communities in regions... 


Diesel fuel costs, weaker rand to place pressure on inflation, export-competitiveness
14th April 2026 By: Schalk Burger

Financial brokerage and asset management firm EBC Financial Group (EBC) warns that the R3-a-litre levy cut will provide relief only for a month, while Brent-linked diesel costs and a weaker South... 


Babcock appointed Preferred Partner for Lincoln Electric across Sub-Saharan Africa
Babcock appointed Preferred Partner for Lincoln Electric across Sub-Saharan Africa
8th April 2026

Babcock has been named the Preferred Partner for Lincoln Electric across Sub-Saharan Africa, a landmark appointment that signals a significant shift in how world-class welding technology will be... 


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pqt: 0.195s - ct: 1.889s - 288pq - 2rq
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