Lesotho

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH has been working in Lesotho since 1976. It implements EU-cofinanced projects under the Team Europe initiatives ‘Metsi a Lesotho’ (water) and ‘Renewable Lesotho’ (energy) through global programmes and the portfolio of the Southern African Development Community (SADC).

Lesotho: Between abundant water resources and energy dependence

Lesotho is the ‘water tower’ for southern Africa. Although only three per cent of the Orange-Senqu Basin lies within the country, Lesotho receives 40 per cent of the annual surface runoff. Overgrazing, soil degradation and more extreme weather events cause erosion, destroy arable land and reduce the soil’s ability to store water. This puts at risk the water supply for more than 19 million people, including those of the Gauteng economic region in South Africa.

Lesotho is currently reliant on electricity imports from South Africa. With supply contracts coming to an end, Lesotho now needs to develop its own capacity for electricity generation. The sun, wind and water offer great potential in this regard, but the regulatory framework and project preparation are not yet sufficiently investment-friendly.

GIZ in Lesotho: water, energy and employment

GIZ works in partnership with the Government of Lesotho, small and medium-sized enterprises and civil society. It focuses on the following areas:

• Climate action and environmental protection
• Sustainable infrastructure
• Economic development and employment

In the area of climate action and environmental protection, the Government is implementing a nationwide approach to integrated river basin management through ReNOKA. GIZ is providing support to ensure the sustainable use of land and water, to establish a coordination unit and to improve the legal framework. It is also supporting the development of a financing model, in which investors and companies that use water pay local people for the protection of soil and water sources. Integrated catchment management reduces erosion, restores land to productive use and, in the long term, mitigates risks to infrastructure such as dams and solar power systems.

In the field of sustainable infrastructure, GIZ supports the development of a resilient and investment-ready energy sector through GET.transform and GET.invest. It provides advice on investment-friendly framework conditions and supports the development of specific investment projects. The Lesotho Energy Access Dialogue brings together key stakeholders. In this way, GIZ is helping to expand renewable energy, strengthen security of supply and increase access to clean electricity. By October 2026, GIZ had helped to mobilise more than EUR 9 million – providing electricity to around 250,000 households.

In the field of economic development and employment, GIZ advises the Ministry of Trade and Industry and businesses on how to make the most of opportunities offered by the EU-SADC Economic Partnership Agreement. The agreement governs trade between the EU and the countries of southern Africa. GIZ supports the Ministry in developing local training and value-added initiatives, such as central production facilities. It helps companies tap into new markets through trade fairs, business model development and export certification.