Lesotho Reports Significant Progress in National Development Priorities for 2025/26

The Government of Lesotho has recorded measurable advancements across its key national development priorities during the 2025/26 fiscal year, Minister of Finance and Development Planning Dr. Rets’elisitsoe Matlanyane announced during the mid-term budget review presented to Parliament. The review was held under the theme, ‘Building Strategies for Inclusive Growth’.

Dr. Matlanyane attributed these achievements to strategic partnerships, policy reforms, and targeted investments, noting notable progress in infrastructure, public finance, digitisation, education, governance, and youth employment.

In support of Small and Medium-sized Enterprises (SMEs), government-backed schemes have facilitated M29.7 million through four targeted investments. The LNDC Partial Credit Guarantee scheme alone contributed M4.5 million, with 86.8 percent of funding reaching youth and women-led enterprises, fostering inclusive economic participation.

In agriculture, over 6,600 farmers have received training in Climate Smart Agriculture. The government also expanded irrigation infrastructure across multiple districts to support sustainable production. Youth empowerment initiatives have progressed through grants and mentorship under the Agricultural Productivity Programme for Southern Africa (APPSA) and Women in Cooperative Projects (WomCop). Under these programs, 300 farmers received SADP II grants, and 80 young farmers obtained additional support.

Tourism and investment have seen positive developments. Three investors have committed to developing high-end hotels and resorts, including a M24.0 million 5-star resort in Semonkong featuring adventure activities and full amenities, with the potential to create 300 jobs.

The mining sector is undergoing transformation through strategic reforms and diversification. Simplified licensing procedures for artisanal and small-scale mining were introduced in 2025, lowering entry barriers and encouraging community participation.

Economic projections at the time of budget approval in February anticipated growth of 3.4 percent, largely driven by a robust construction sector expected to expand by over 30 percent, alongside steady growth in services and agriculture.

Lesotho’s mid-term budget report highlights the government’s commitment to inclusive growth, strategic investments, and reforms aimed at strengthening the economy, empowering youth, and enhancing sustainable development across key sectors.