By Thoboloko Ntšonyane
MASERU
His Majesty King Letsie III green agenda efforts have paid off as the United Kingdom (UK) based UK Export Finance (UKEF) has pledged to the tune of £250 million about M6 billion, the figure which could potentially double.
British High Commissioner to Lesotho, Harry MacDonald revealed these developments in an interview with this publication following a visit to the country by the UKEF Head of Export Finance- Southern Africa, Dirk van den Berg. His visit comes following an investment drive undertaken by the King in the UK in May 2024 where he embarked on an investment roadshow selling Lesotho as a viable investment destination on clean energy to potential investors and that tour was also in celebration of the 200 years anniversary.
Lesotho is pursuing just energy transition through renewable energy sources while also attracting investment to develop clean energy infrastructure. The goal is to achieve self-sufficiency and then export surplus to the Southern African Development Community (SADC) power pool.
The country’s energy policy outlines a vision for a future where energy is universally accessible, affordable, and sustainable, with minimal environmental harm. It is also seen as a critical tool in efforts to reduce poverty.
Lesotho has also partnered with Standard Chartered and Standard Bank Group to launch the His Majesty King Letsie III Just Energy Transition Fund to support its ambition of achieving energy sufficiency. This Fund is designed to attract private and international investment into renewable energy development.
This investment aligns with the country’s broader vision, as clean energy has been touted as critical for improving livelihoods, creating jobs, and mitigating climate change. Lesotho enjoys many days of sunlight throughout the year and its wind and water could be harnessed to generate clean energy.
MacDonald mentioned that the projects to receive the financing will be determined by the Government of Lesotho. “Supporting renewable energy development is our top priority where we believe UKEF financing can be part of Lesotho’s finance mix.
“UK Export Finance will perform its required due diligence on proposed projects. The financing comes without significant conditionality and we will work along any (non-sanctioned) entity from anywhere in the world. The financing does ask for a 20% UK content.”
The High Commissioner also highlighted that the engagement led by His Majesty and His government has been instrumental in securing this commitment from UKEF.
His Majesty’s Just Energy Advisor Stephen Lehlomela Phakisi told Informative that the UKEF guarantee is expected to unlock further private sector investment of energy across the country.
Phakisi said that during the tour, they also visited Glasgow to understand the energy framework and explore how it could help Lesotho. The Glasgow Energy Framework, emerging from COP26, is known for setting global ambition to shift away from fossil fuels and invest in renewables. It highlights the need to scale up clean energy like solar and wind, while supporting developing countries with climate finance.
He mentioned that the UKEF has demonstrated a risk appetite and is willing to invest up to £500 million (approximately M12 billion) in a renewable energy project, with a repayment structure of up to 22 years, including a 15-year payment term.
Companies in Lesotho are eligible to apply, provided that 20% of the project is allocated to UK interests, while 80% remains local.
Commenting on His Majesty’s investment efforts, Phakisi remarked, “He has opened a window for us to take advantage.” He also commended the recent visit to Lesotho by the President of the African Development Bank, Dr Akinwumi Adesina, whom the King also had an audience with in Tanzania where among others they discussed energy matters during the Africa Heads of State Energy Summit.
The King has also been on an investment tour where he has been promoting clean energy in the countries including the Scandinavian, Nordic countries and the United States.
The country launched Phase I of a solar plant at Ramarothole, in Mafeteng which generates 30 megawatts. And there is going to be Phase II which is set to generate an additional 50 megawatts.
Currently ‘Muela Hydropower Station generates approximately 72 megawatts. Lesotho needs at least 200 megawatts to be energy-sufficient.
The acting Minister of Energy Hon Mohlomi Moleko said by December 2026, the country will be energy-sufficient.