…for electricity, skills and nutrition projects
Rethabile Pitso
THE government and the World Bank have signed financing agreements worth approximately M900 million aimed at expanding electricity access, strengthening skills development and improving nutrition outcomes across the country.
The agreements were signed on Friday by Minister of Finance and Development Planning, Dr Retšelisitsoe Matlanyane, and World Bank Country Representative in Lesotho, Dinara Djoldosheva.
The largest portion of the package, valued at US$50 million (approximately M820.4 million), will fund the Accelerating Sustainable and Clean Energy Access Transformation in Lesotho (ASCENT) Project, which seeks to extend reliable and affordable electricity to nearly 147,000 residents and businesses.
The project will prioritise peri-urban, rural and highland communities that continue to face challenges in accessing electricity.
Additional financing includes a US$1 million (about M16.4 million) grant for preparation of the Lesotho Skills Acceleration Project and a further US$300,000 (approximately M4.9 million) grant for the Lesotho Multisectoral Nutrition Project.
Speaking during the signing ceremony, Dr Matlanyane said the financial support represented a major milestone in the government’s efforts to improve livelihoods through targeted investments in critical sectors.
She said the electricity component alone was expected to connect more than 26,000 households to the national grid while also reaching an additional 554 households that had previously not been included in electrification plans.
Dr Matlanyane linked the financing to continental efforts to expand access to electricity under the Project 300 initiative launched by the World Bank and the African Development Bank.
“We would recall that in October 2024, the World Bank together with the African Development Bank launched Project 300 through which it pledged that out of the 600 million African households without access to electricity, at least 300 million households should be connected,” Dr Matlanyane said.
She said Lesotho had formally committed to the initiative during its launch in Tanzania in January 2025.
“Lesotho was among the African countries that pledged commitment towards ensuring that electrification was realised in our respective countries. That commitment was made on our behalf by His Majesty King Letsie III who led the delegation.”
She said approval of Lesotho’s proposal paved the way for the current financing package.
“This project is going to assist us with improving electrification coverage throughout the whole country,” she added.
Dr Matlanyane explained that the ASCENT project would be implemented in three phases.
The first phase, supported with approximately US$40 million (M654 million), will focus on expanding on-grid electricity access and improving existing infrastructure to enhance efficiency and reliability.
The second phase, allocated US$5 million (M82 million), will target off-grid energy solutions for communities previously excluded during electricity mapping exercises. Renewable energy technologies including solar, water and wind power will be used to connect underserved households.
Another US$5 million has been earmarked for strengthening institutional and technical capacity to improve management of electricity projects and support the Lesotho Electricity Company in becoming more sustainable and efficient.
Beyond electrification, Dr Matlanyane said part of the financing would support nutrition initiatives, including community education on food preparation methods aimed at preserving nutritional value and improving dietary outcomes.
She also said resources would support the construction and improvement of schools, including vocational education institutions, as part of broader efforts to strengthen skills development and expand educational opportunities.
Meanwhile, Ms Djoldosheva described the agreements as a continuation of the strong partnership between the World Bank and Lesotho.
She said the projects aligned with the broader objective of stimulating economic growth and creating sustainable jobs.
“At the heart of every World Bank operation is job creation,” Ms Djoldosheva said.
“Jobs foster dignity, self-reliance, safety, stability and greater opportunities. Sustainable job creation happens when infrastructure, investment and both the public and private sectors work together.”
She said the ASCENT project would help reduce energy poverty and create conditions for stronger household incomes and private sector growth.
“Through the Lesotho ASCENT project, we are supporting the government to bring reliable, affordable electricity to more than 147,000 households and businesses through a US$50 million credit from the International Development Association,” she said.
Ms Djoldosheva explained that the project would combine grid expansion with solar-based solutions to reach underserved populations.
She also said preparation grants played a critical role in ensuring projects are adequately designed before implementation.
“This helps to reduce risk, shorten project implementation time, strengthen country capacity and improve development outcomes,” she said.