Lesotho and World Bank sign M900 million financing deal to transform Electricity, Skills and Nutrition
Lesotho’s Minister of Finance and Development Planning Dr. Retšelisitsoe Matlanyane and World Bank Country Representative Ms. Dinara Djoldosheva signed financing agreements worth approximately M900 million ($50 million) on June 18, 2026, to expand electricity access, strengthen skills development, and improve nutrition outcomes across the Kingdom of Lesotho.
The signing ceremony at the Ministry of Finance headquarters brought together senior government officials, World Bank representatives, and international development partners to witness the landmark agreement that marks one of the largest concessional financing commitments to Lesotho in recent years.
“This comprehensive financing package represents a transformative investment in our country’s development priorities,” said Dr. Matlanyane, who entered electoral politics after leaving the Central Bank of Lesotho in 2021, where she served as the first woman governor from 2012 to December 31, 2021. “The agreements will directly improve lives and create sustainable economic opportunities for Basotho families across rural and peri-urban communities.”
The largest allocation, $50 million (about M820.4 million), will fund the Accelerating Sustainable and Clean Energy Access Transformation in Lesotho (ASCENT) Project. The initiative is expected to provide reliable and affordable electricity to nearly 147,000 residents and businesses, particularly in peri-urban, rural, and highland areas.
The ASCENT programme, anchored in Lesotho’s National Energy Compact under the joint World Bank-African Development Bank Mission 300 initiative, aims to reach close to 147,000 people through a combination of grid expansion and off-grid solar solutions.
Additional grants include $1 million (M16.4 million) for preparation of the Lesotho Skills Acceleration Project and $300,000 (M4.9 million) for the Lesotho Multisectoral Nutrition Project.
Ms. Djoldosheva, who began her tenure as World Bank Country Representative for Lesotho in September 2024 and is based in Maseru, reaffirmed the World Bank’s support for Lesotho’s inclusive and sustainable development agenda.
“The agreements are expected to accelerate progress toward the country’s vision of inclusive growth and poverty reduction,” Djoldosheva stated at the ceremony. “This partnership demonstrates the World Bank’s continued commitment to supporting Lesotho’s development priorities.”
The financing addresses critical challenges in Lesotho’s energy sector. While urban areas enjoy grid electricity access at 80.6%, rural regions experience a notably lower access rate of only 37.7%. The rugged and demanding topography has historically constrained energy infrastructure development, particularly in the highlands and foothills.
The skills development component will build on previous World Bank support for Lesotho’s entrepreneurship ecosystem, including the Competitiveness and Financial Facility Inclusion (CAFI) program that facilitates comprehensive entrepreneurship ecosystem development.
The nutrition project responds to persisting health and nutrition challenges, including high maternal and infant mortality ratios, which put the population at high risk to any pandemic.
Government officials indicated that implementation will begin immediately, with the Ministry of Energy, Ministry of Trade and Industry, and Ministry of Health leading their respective components. The investment aims to create synergistic benefits across all three sectors, accelerating Lesotho’s development trajectory and improving quality of life for thousands of Basotho families.