Making the announcement on Sunday in his national address, he said the status changes with effect from midnight on Monday.
He showed that after going through lockdown for seven weeks from December to January, the infection rate which was at 47 percent has dropped to 7 percent.
Dr Majoro said bed occupation rates and deaths have also dropped significantly, adding however that the risk of another spike remains elevated and that the transmission has transitioned to the community.
The infection rate he further showed emanating from cross-border travel also remains elevated due to expected inward travel from Basotho migrants returning home for the Easter holidays.
He therefore appealed to Basotho residing and working in South Africa to stay there and not come home for the holidays in order to avoid the spread of the COVID-19 infection.
The Prime Minister said that following the Easter holidays is the winter season during which the Corona virus is reportedly more dangerous due to the cold weather condition, adding there are predictions of a third wave of the virus hitting during winter.
He said new regulations under the new level include an extension of the curfew which is still between 9pm and 5am as well as the opening of borders including the Moshoeshoe I International Airport and the Sani Pass border.
Schools, he said will also reopen, while observing COVID-19 rules and regulations.
Dr Majoro said under the new level, businesses will operate from 8am to 6p.m, adding that liquor stores will sell takeaways between 8am and 6pm from Mondays to Thursdays only.