Overview
The Kingdom of Lesotho is a small country, with over 2 million inhabitants, landlocked by the region’s largest economy, South Africa.
Lesotho’s economy relies heavily on key external partners like South Africa and the United States. While the country faces challenges such as income inequality and poverty, efforts to stimulate economic growth and diversification continue. Climate change effects, such as droughts and soil erosion, affect the agricultural sector and the limited natural resources. Furthermore, Lesotho is navigating public health challenges, including a high HIV/AIDS prevalence rate, while working towards greater political stability and security.
Our partnership
Ever since Lesotho gained independence in 1966, it has maintained a stable and positive relationship with the EU. Although no EU Member State has a permanent diplomatic mission in Lesotho, delegated cooperation is possible with their funding agencies.
The EU partners with Lesotho on promoting a green and resilient economy by supporting government initiatives towards a circular economy, particularly in energy, water, and sanitation, to drive economic growth, create decent jobs, and improve public health in line with the EU’s Global Gateway strategy.
Additionally, Team Europe supports measures to strengthen good governance, overcome political instability, address gender-based issues and build a peaceful, just society. Team Europe in Lesotho brings together the EU, the European Investment Bank and Ireland. Furthermore, Germany is co-funding three programmes in Lesotho through regional programming.
In total, the EU allocated €119 million, under the bilateral cooperation framework, towards the partnership in 2021-2027.
EU-Lesotho partnership programming documents can be found in the ‘Related documents’ section below.
Our key initiatives
- Renewable energy
The EU is partnering with Lesotho to promote sustainability and improve energy access, particularly in rural areas. Our actions focus on:
- Providing technical support to the public and private energy sector, including regulatory advice and financial assistance for energy projects.
- Offering a results-based grant facility for initiatives like mini-grids, pay-as-you-go solar systems, solar home systems, and efficient cooking stoves.
- Establishing a lending facility to support private projects expanding electricity access and sustainable energy generation.
- Contributing to large-scale energy infrastructure projects, in the solar and wind sector, through the Africa Investment Platform.
- Water
Working with Lesotho to improve water and sanitation infrastructure, enhance catchment management, and promote sustainable water use. Key areas include:
- Building or rehabilitating water, sanitation, and hygiene (WASH) facilities in 250 rural communities, 110 schools, and 15 clinics.
- Support of the ReNOKA programme, focussing on soil and water conservation in the Orange-Senqu River Basin, including land restoration, erosion control, and protection of wetlands.
- Providing safe drinking water to 280,000 people and improving sanitation for 20,400 individuals by 2027 through the Lesotho Lowlands Water Development Project Phase II.
- Providing technical support to the water sector, including water diplomacy.
- Private sector and business climate
Fostering Lesotho's private sector and business climate through targeted initiatives to enhance capacity, create jobs, and foster sustainable growth. Key areas of collaboration include:
- Enhancing MSME export capabilities in regional value chains, focusing on indigenous herbs and feather processing, and increasing Ministry of Trade and private sector capacity to benefit from support in these areas.
- Providing technical assistance to the Central Bank to develop a financial sector strategy and expand digital payment systems.
- Working to improve the investment climate, with a focus on gender sensitivity.
- Supporting the Ministry of Finance and Revenue Authorities in reforming Lesotho’s public financial management.
- Education and youth
The EU partners with Lesotho on enhancing education, employability and creating opportunities for youth, while making the processes around the AU-EU Partnership more youth responsive and inclusive. Lesotho participates in ERASMUS+ to support youth.
- Governance and civil society
Improving governance, social protection, and fostering a peaceful and just society in Lesotho. Our efforts aim to enhance social protection, strengthen governance structures, and support civil society participation, e.g. through:
- Expanding social protection subsidies, rolling out digital payments, updating the national social registry, and enhancing statistical capacity.
- Updating the voter registry, expanding civic education (including in schools), supporting election monitoring by media and civil society organisations (CSOs), and providing technical assistance to the Independent Electoral Commission.
- Assisting in justice sector reform and improving citizens' access to justice by decentralising and strengthening justice institutions and oversight bodies (e.g. Parliament, Auditor General, anti-corruption and watchdog bodies), and providing technical assistance for drafting national reforms and the consultation process.
- Strengthening civil society and promoting the equitable participation of all individuals, regardless of their sexual orientation and gender identities, in policy- and decision-making at all levels, with a focus on youth CSOs through the Youth Power Hub.
