AGP Executive Report

Rural Power Push: LEWA has granted licence exemptions to One Power Lesotho for seven mini-grid projects covering 70 villages, aiming to speed electricity access while keeping safety and pricing regulation in place. SME Finance Bottleneck: The M400 Inclusive Growth Fund is struggling with uptake—only M19m disbursed to 24 businesses—prompting government to intensify awareness and communication to Basotho MSMEs. Agriculture Under Pressure: Food prices may rise further as farmers face higher fertiliser and diesel costs ahead of the 2026/27 planting season, with El Niño-linked drought risk adding financial strain. Dairy Dispute: Lesotho’s agriculture minister told the Senate the Lesotho National Dairy crisis is being addressed after non-payment to farmers since July, following Denmar’s exit and an ownership dispute. Mobile Connectivity Win: Econet Telecom Lesotho was named Lesotho’s fastest mobile network by Ookla (Speedtest Verified, 1H 2026), as it continues 5G and 4G modernisation. Trade & Jobs Focus: A Maseru workshop linked Lesotho MSMEs to buyers under AfCFTA, while also tackling finance and market access. Transport Cost Shock: Higher fuel-driven transport costs in South Africa weighed on regional agricultural exports, hitting items like wheat flour and vegetable products. Security Spillover: A Lesotho migrant workers association pleaded for peace after 18 Basotho-linked deaths in a South African tavern shooting, underscoring violence risks for workers.

LEWA Rural Power Push: Lesotho Electricity and Water Authority (LEWA) granted One Power Lesotho seven licence exemptions for mini-grid projects covering 70 villages, aiming to speed rural electrification while keeping pricing, safety and standards regulated. Inclusive Growth Fund Slowdown: Government says only M19m of the M400m Inclusive Growth Fund loan facility has been disbursed, with limited awareness blamed for weak uptake; officials plan stronger communication as applications move through review stages. Dairy Crisis in Focus: Agriculture Minister Selibe Mochoboroane told the Senate the Lesotho National Dairy dispute and non-payment to farmers are being addressed after South African operator Denmar left the plant. Digital Connectivity Boost: Econet Telecom Lesotho was named Lesotho’s fastest mobile network by Ookla (Speedtest Verified, 1H 2026), as it continues 5G and 4G modernisation. MSME Trade Linkages: A Maseru workshop on AfCFTA opportunities ended with a B2B seminar connecting 40 MSMEs to potential buyers, targeting both market access and finance. Infrastructure for Industry: LHDA completed a R2.3bn, 166km access road network for Phase II of the Lesotho Highlands Water Project, easing heavy transport to Polihali Dam and tunnel sites. Regional Context: South Africa’s Wedela tavern shooting killed 18, with reports linking violence to illegal mining gangs that also involve Basotho nationals.

Dairy Dispute in Focus: Agriculture Minister Selibe Mochoboroane told the Senate the Lesotho National Dairy crisis is being addressed, after farmers went unpaid since July following South African operator Denmar’s exit, while ownership and management questions remain under discussion. Digital Connectivity Boost: Econet Telecom Lesotho was named Lesotho’s fastest mobile network by Ookla (Speedtest Verified) for 1H 2026, as the operator expands 5G and strengthens 4G nationwide. School Feeding Hit: After US aid cuts to the Bokamoso Ba Bana programme, GroundUp reports smaller portions and less nutritious meals in Semonkong primary schools, with reduced maize-meal and cooking oil supplies and delayed pay for cooks. MSME Trade Push: Lesotho hosted an AfCFTA-focused MSME workshop and B2B seminar linking about 40 exhibitors to potential buyers, targeting market access and export readiness. Rural Power Rollout: LEWA granted seven mini-grid licence exemptions to One Power Africa for projects across seven rural communities, aiming to extend electricity where grid reach is limited. Infrastructure for Industry: LHDA completed a R2.3bn access road network for Phase II of the Lesotho Highlands Water Project, improving heavy-transport routes to support Polihali Dam construction.

School Feeding Shock: Lesotho’s school meals in Semonkong have shrunk after US funding cuts, with maize-meal down 54% per pupil and cooking oil halved, prompting an education ministry probe. Agricultural Input Friction: Kueneng’s chief accuses MPs and civil servants of sabotaging Matekane’s village input programme by steering farmers to their own businesses. MSME Trade Push: A Maseru workshop and B2B seminar linked about 40 MSMEs to potential buyers under AfCFTA, focusing on finance, standards and export readiness. Rural Power Expansion: LEWA granted seven mini-grid licence exemptions to One Power Africa for communities including Ketane, Tosing, Tlhanyaku, Sehlaba-Thebe, Matsoaing, Thaba-Tseka and Berea. Digital Leadership: Lesotho joins Commonwealth Digital Nexus discussions in London on AI-driven digital transformation and inclusive ecosystems. Mobile Connectivity Win: Econet Telecom was named Lesotho’s fastest mobile network by Ookla based on 2026 consumer testing. Regional Industry Moves: JAC Motors expands its South African T9 bakkie line with a Black Edition model, while Varun Beverages drops a South African dairy deal and heads to arbitration. Water Infrastructure Watch: Lesotho-linked regional demand is in focus as SA and Zimbabwe discuss a US$500m dam plan to supply water for an industrial zone.

Vehicle & Manufacturing: JAC Motors expanded its local T9 bakkie range with two new T9 2.0L CTi Black Edition 4x4 models (Hunter and Super Lux), priced from R549,900 to R689,900, leaning into a rugged “lifestyle workhorse” look. MSMEs & Trade: Lesotho hosted a three-day workshop on AfCFTA opportunities, ending with a B2B seminar that linked about 40 MSMEs to potential buyers and focused on market access, standards and export procedures. Energy Access & Infrastructure: LEWA granted seven licence exemptions to One Power Africa to install mini-grids in seven rural communities, aiming to extend electricity where grid reach is limited. Water & Industry: South Africa and Zimbabwe are discussing a US$500m Thuli Moswa dam to supply water to the Musina-Makhado industrial hub, with feasibility talks ongoing. Digital Connectivity: Econet Telecom Lesotho was named the country’s fastest mobile network by Ookla, based on Speedtest results in the first half of 2026. Security & Cross-Border Crime: South Africa’s Wedela tavern shooting near Johannesburg rose to 18 deaths, with at least two victims identified as Lesotho nationals, amid wider concerns about illegal mining-linked violence. Agriculture Heritage: FAO convened 16 African countries, including Lesotho, to build capacity for recognising agricultural heritage systems and preparing conservation action plans.

AfCFTA MSME Push: A three-day workshop in Maseru wrapped with a B2B seminar that linked 40 Lesotho MSMEs to potential buyers, tackling the usual bottlenecks of market access and finance while training firms on export procedures, standards and compliance. Rural Power Rollout: LEWA granted seven licence exemptions to One Power Africa to install mini-grids in seven rural communities, aiming to bring electricity where grid expansion is slow. Water & Logistics Infrastructure: LHDA says it has completed a R2.3bn, 166km access road network for LHWP Phase II, building a heavy-haul transit corridor to move major construction equipment to the Polihali Dam and tunnel sites. Digital Policy & Connectivity: Lesotho joined Commonwealth Digital Nexus discussions at CTO@125 in London, focusing on how AI can drive inclusive digital transformation. Mobile Market Signal: Econet Telecom was named Lesotho’s fastest mobile network by Ookla, citing Speedtest results from the first half of 2026. Energy Cost Pressure Watch: Reports on rising diesel prices across Africa highlight how higher fuel costs can quickly feed into transport, food and construction prices—relevant for Lesotho’s import-dependent supply chains.

Diesel shock across the region: Nigeria and Namibia reported higher September diesel prices, raising costs for generators, transport and logistics—pressuring food, construction and manufacturing budgets. Rural power push: LEWA granted seven licence exemptions to One Power Africa to install mini-grids in seven Lesotho communities, aiming to expand electricity access where grid reach is slow. Fisheries skills for farmers: Berea’s agriculture ministry trained at least 35 farmers on managing fishery projects and building a commercial fish value chain, with export opportunities beyond textiles also flagged. Lesotho backs AfCFTA trade: A Maseru workshop urged MSMEs to sell across Africa under AfCFTA, supported by UN partners and regional buyers. Local business finance tightening: The Central Bank of Lesotho raised its interest rate 25 bps to 7.00% to curb inflation amid higher fuel, fertiliser and transport costs. Water and roads for industry: LHDA reported major progress on Phase II of the Lesotho Highlands Water Project, including a completed R2.3bn access road network to support Polihali Dam works. Digital leadership: Lesotho joined CTO@125 in London, focusing on AI-driven digital transformation and future-ready ecosystems.

Telecom & Connectivity: Econet Telecom Lesotho has been named Lesotho’s fastest mobile network by Ookla, based on Speedtest results from the first half of 2026, with the operator pointing to ongoing network expansion and modernisation. Trade & MSMEs: Lesotho is hosting a three-day workshop urging small businesses to use AfCFTA and regional trade deals to sell beyond the domestic market, with UN partners supporting capacity-building for cross-border buyers and retailers. Digital Governance: Lesotho is in London for CTO@125, with officials taking part in the Commonwealth Digital Nexus forum on AI-driven digital transformation and building future-ready digital ecosystems. Water & Infrastructure: The Lesotho Highlands Water Project Phase II access road network is now complete after a R2.3bn investment, creating a heavy-transport corridor to support Polihali Dam works and freight movement through the Maluti Mountains. Agribusiness & Prices: Fresh produce trends show carrots and tomatoes easing on South African markets, while onion prices remain very high—important for Lesotho’s wholesale supply chain. Finance: The Central Bank of Lesotho raised its interest rate by 25 basis points to 7.00% to rein in inflation amid higher energy, food and fertiliser risks. Climate Resilience: Government says Lesotho is preparing for hotter, drier conditions linked to El Niño, including drought-tolerant seeds and advice on lucerne and water collection for livestock. Regional Security Spillover: South Africa’s Wedela tavern shooting near Johannesburg rose to 18 deaths, with reports that at least two victims were Lesotho nationals, underscoring the region’s ongoing violence tied to organised crime and illegal mining.

Regional Trade & MSMEs: Lesotho is hosting a three-day workshop in Maseru urging small businesses to tap AfCFTA and regional trade deals, with UN partners (UNECA, UNDP and UNRCO) pushing firms to sell beyond the domestic market. Digital Policy & Connectivity: Lesotho is in London for CTO@125, joining Commonwealth discussions on how AI can drive digital transformation, with MICSTI and the Lesotho Communications Authority leading panels on building future-ready digital ecosystems. Water & Infrastructure: The Lesotho Highlands Development Authority says it has completed a R2.3bn, 166km access road network for LHWP Phase II, designed to move heavy construction equipment to Polihali Dam and the Transfer Tunnel. Monetary Policy: The Central Bank of Lesotho raised its interest rate by 25 basis points to 7.00% to rein in inflation amid rising energy, food and transport costs. Climate Resilience & Jobs: Government is pushing climate ideas into real businesses through the PARS programme, framed as clean jobs and youth-led entrepreneurship. Security Spillover Watch: South Africa’s Wedela tavern shooting near Johannesburg rose to 18 deaths, including Lesotho nationals, underscoring cross-border risks tied to violent crime and illegal mining networks.

Violent Crime Spillover: A mass tavern shooting west of Johannesburg (Wedela) has killed 18 after another victim died in hospital; police say at least two of the dead are Lesotho nationals, with the attack linked to gang rivalry around illegal gold mining. Regional Water Infrastructure: South Africa and Zimbabwe are discussing a $500m Thuli Moswa dam to supply water to the Musina-Makhado SEZ, a move aimed at supporting energy-intensive industry near the border. Lesotho Trade & MSMEs: Lesotho will host a three-day AfCFTA-focused workshop to help 65–70 MSMEs sell across Africa, covering practical steps like rules of origin, standards, compliance and digital trade. Inflation Watch: The Central Bank of Lesotho raised its interest rate by 25 basis points to 7.00% to curb rising prices, citing global risks and weather impacts on food. Climate & Agriculture Readiness: Lesotho is preparing for hotter, drier conditions tied to El Niño, urging farmers to use drought-tolerant seeds, grow lucerne for feed and stock water. LHWP Progress: Polihali Dam construction is reported at 53% and Phase II at 56.7%, with impounding still targeted for July 2027. Creative Economy: The Lesotho Spring Music Conference is pushing for stronger policy and funding support for artists as the sector shifts into a digital environment.

South Africa Gun Violence: Two separate shootings killed 27 people within hours, including a Wedela bar attack where eight gunmen allegedly used AK-47 rifles and pistols, leaving 17 dead and 15 injured; police are also linking motives to illegal mining turf wars and robbery. Lesotho Highlands Water Project: Polihali Dam construction is reported at 53% and Phase II overall at 56.7%, with impoundment still targeted for July 2027 as Lesotho’s water infrastructure timeline stays in focus. AfCFTA for MSMEs: Lesotho will host a three-day workshop to help 65–70 MSMEs sell across Africa, with training on rules of origin, standards, compliance and digital trade. Inflation Watch: The Central Bank of Lesotho raised its interest rate 25 basis points to 7.00% to rein in rising prices amid regional and global cost pressures. Climate & Food Security: Government is urging farmers to use drought-tolerant seeds, grow lucerne and stock animal feed as El Niño-linked heat and drought risks intensify. Treason Trial Update: The long-running treason case has been postponed to November 2–5, with defence also alleging police tampered with a bullet-damaged door. LHDA Marathon Boost: LHDA injected M300,000 into the revived Mokhotlong Highlands Marathon for 6 December, tied to LHWP’s 40th anniversary. Trade & Industry Link: A Trans-Atlantic Cotton Partnership aims to connect U.S. cotton suppliers with African textile and apparel manufacturers for the U.S. market, with Lesotho highlighted as a key player.

LHWP Progress Update: Polihali Dam construction in Mokhotlong has reached 53% and Phase II overall is at 56.7%, with impoundment still targeted for July 2027 and water delivery aimed for 2028/29. Inflation Watch: The Central Bank of Lesotho raised its interest rate 25 basis points to 7.00% to rein in rising prices, citing energy costs, bad weather and higher fertiliser and transport costs. Trade & MSMEs: Government and partners will run a three-day workshop to help 65–70 MSMEs use AfCFTA opportunities, focusing on rules of origin, standards, compliance and digital trade. Climate to Jobs: Lesotho is being urged to turn climate ideas into real businesses as it launches PARS, a USD 10m push for climate adaptation and entrepreneurship. Agriculture Inputs Concern: Chiefs say delays in letting traders distribute subsidised seeds and fertiliser closer to farmers are undermining timely access during the summer season. Food & Water Security: Farmers are advised to use drought-tolerant seeds, plant lucerne for fodder and collect water as El Niño-linked heat and drought risks intensify. Treason Trial: The long-running treason case has been postponed to November 2–5, with defence alleging police tampered with evidence at Police Headquarters. Industry & IP: A Mokorotlo collective mark project aims to protect authenticity and help local artisans earn better returns through a legal standard. Energy Access: A solar-powered water scheme is benefiting about 2,300 people in Shiselweni through 55 communal taps. Textiles/Trade Deal: Lesotho is part of a Trans-Atlantic Cotton Partnership linking US cotton to African textile and apparel production for the US market.

El Niño Heat & Food Security: Lesotho is bracing for worsening heat and drought, with a new study projecting El Niño could kill about 42 Basotho between September and February, while the government admits it lacks money to prepare. Agriculture Inputs Implementation: Concerns are growing that delays in letting traders distribute subsidised seeds and fertiliser closer to rural farmers could undermine timely summer planting. LHWP & Governance: Natural Resources Minister Mohlomi Moleko faces allegations over the appointment of an “unqualified” RFP member as an advisor linked to the Lesotho Highlands Water Project, with critics warning it could weaken Lesotho’s negotiating position. Treason Trial Update: The treason case continues, with defence alleging police tampered with evidence at Police Headquarters, while the matter is set to run into early November. Digital & AI Push: Lesotho says it is the first country to apply the UN AI Blueprint, starting Phase One of a national compute roadmap (2026–2029). Trade & Industry Linkages: Lesotho is set to benefit from the Trans-Atlantic Cotton Partnership, connecting U.S. cotton to African textile and apparel manufacturing for the U.S. market. Water & Renewables: A solar-powered water scheme in Shiselweni is now serving about 2,300 people through communal taps, showing how hybrid energy can cut costs and improve access. Creative Economy: The Lesotho Spring Music Conference is pushing for stronger support for artists, including better funding and updated policies for a digital industry.

Hard Enduro Jobs & Tourism: The Roof of Africa “Mother of Hard Enduro” is bringing short-term work to Roma-area villagers as track marshals and helpers, reinforcing Lesotho’s motorsport tourism pull. El Niño Heat & Food Security: Government says it has drought-tolerant seeds and urges lucerne fodder and water harvesting, as forecasts warn of hotter, drier conditions and El Niño-linked deaths. Agriculture Inputs Implementation: Chiefs and traders question delays in letting rural communities access subsidised seeds and fertiliser closer to farmers, risking late summer planting. LHWP Governance Scrutiny: Natural Resources Minister Mohlomi Moleko faces allegations over an “unqualified” RFP appointment tied to the Lesotho Highlands Water Project, which critics say could weaken negotiations. Creative Economy Push: The Lesotho Spring Music Conference spotlights sector challenges, including outdated policies and limited funding, while mapping a digital roadmap for creatives. AfCFTA MSME Training: Lesotho will host an MSME workshop to help small firms meet rules of origin, standards and compliance, and use digital trade tools. Water & Solar Access: A solar-hybrid scheme is improving clean water access for about 2,300 people in Shiselweni. Digital & AI Leap: Lesotho says it is the first country to apply the UN AI Blueprint, starting a national compute roadmap. Trade & Textiles Link: A Trans-Atlantic Cotton Partnership aims to connect U.S. cotton with African textile production for the U.S. market, with Lesotho among participating governments.

Climate & Food Security: Lesotho is bracing for a hotter, drier summer as El Niño-linked heat and drought risks rise, with officials urging farmers to use drought-tolerant seeds, plant lucerne for fodder, and stock water ahead of October–December below-normal rainfall. Water & Infrastructure: The Lesotho Highlands Development Authority has injected M300,000 into the revived Mokhotlong Highlands Marathon (6 Dec), tied to LHWP’s 40th anniversary, while broader water-project delivery remains under pressure amid procurement, funding and community disruption concerns. Agribusiness Inputs: Rural leaders say delays in rolling out subsidised agricultural inputs are forcing farmers to travel long distances and wait for seeds and fertiliser, undermining timely summer planting. Trade & Industry: Lesotho will host an MSME workshop on AfCFTA market access, focusing on rules of origin, standards, compliance and digital trade. Digital Economy: Lesotho became the first country to apply the UN AI Blueprint, starting a 2026–2029 compute roadmap. Creative & IP: The Ministry of Law and Justice launched the Mokorotlo Collective Mark project with WIPO support to protect authenticity and help artisans earn better from tourism and export markets. Governance & Justice: In the treason trial, defence alleges police tampered with evidence, while a separate Khubetsoana drug-lab case was deferred after two Chinese accused failed to appear.

LHWP Governance: Natural Resources Minister Mohlomi Moleko is accused of appointing RFP Women’s League SG Matsikane Khali as an LHWP-linked advisor despite alleged qualification gaps; Moleko denies the claims, which critics say could weaken Lesotho’s treaty review negotiating position. Treason Trial: In the Kamoli–Metsing–Mochoboroane treason case, defence alleges police tampered with a bullet-damaged door at Police HQ; the matter is set to continue into early November. Climate & Food Security: A new El Niño study projects heat could kill about 42 Basotho from September to February, with Maseru worst hit, while government admits it lacks funds to prepare; separate reporting warns food security is at risk from war and drought. Agriculture Inputs: Rural chiefs say delays in letting traders distribute subsidised seeds and fertiliser closer to farmers are undermining timely summer planting. Trade & Industry: Lesotho will host an MSME workshop on AfCFTA market access, focusing on rules of origin, standards, compliance and digital trade. Digital & AI: Lesotho is the first country to apply the UN AI Blueprint, starting Phase One of a national compute roadmap (2026–2029). Water & Energy: A solar-powered scheme in Ebulekeni is supplying about 2,300 people via 55 communal taps, cutting operating costs through hybrid power. Brand Protection: The Mokorotlo Collective Mark Project, backed by WIPO and Japan support, aims to protect the authenticity of the Basotho hat and help artisans earn better returns. U.S.-Africa Textiles: The Trans-Atlantic Cotton Partnership links U.S. cotton to African textile production for the U.S. market, with Lesotho’s PM calling it a productive industrial bridge.