Lesotho Projects Modest Agricultural Recovery in 2025/2026 Financial Year

The Minister of Finance and Development Planning, Retselisitsoe Matlanyane, says the agricultural sector expects a modest recovery in the 2025/2026 financial year. She made this statement during the presentation of the 2025/2026 mid term budget review at a joint sitting of Parliament on Wednesday.

She said the forecast is based on early predictions that point to normal to above normal rains. This follows a difficult 2024/2025 season marked by a significant downturn in production. The expected improvement in rainfall is set to support crop yields and livestock conditions, giving farmers a better outlook for the year ahead.

Matlanyane also touched on developments in other sectors. She said Phase II of the Lesotho Highlands Water Project continues to drive economic growth. The project remains a key contributor to the construction sector and supports wider economic activity across the country.

She noted progress in the energy sector through Mission 300. The initiative aims to unlock 300 megawatts of power by 2030. It focuses on improving energy security, promoting independence and building a future network powered by clean energy. She described Mission 300 as a national energy compact with the Basotho people.

While highlighting progress in some areas, Matlanyane also addressed challenges in the mining sector. She said global declines in diamond prices have caused major setbacks for local mines. One mine initiated a restructuring process that led to the retrenchment of 240 workers. She said the industry continues to face pressure as international prices remain unstable.

Matlanyane added that infrastructure projects across the country show steady progress. She said developments in roads, water systems and public facilities continue to support service delivery and long term growth.

The mid term review shows a mixed economic picture. Agriculture appears to be recovering, major projects are driving growth and energy investments continue to expand. At the same time, global market pressures are slowing progress in mining. The government says it plans to focus on stability, resilience and long term recovery across all sectors.