29 Apr Interview with Sam Matekane, Prime Minister of Lesotho
You started the Revolution for Prosperity party about six months before the election and you won, with a campaign heavily based on social media and self-funded. Against this backdrop, can we begin with an introduction to you and your tenure so far as Prime Minister?
Since becoming Prime Minister in 2022, I have focused on stabilizing Lesotho through key reforms and initiatives. This includes improving governance, addressing social challenges and implementing austerity measures to reduce government spending. I have streamlined the cabinet, limited officials’ international travel, stabilized debt and improved revenue collection. In infrastructure, we have increased investment in roads, water supply and electrification. We have built consensus in the National Assembly and the 10th Amendment to the Constitution will soon be passed, with the 11th and the 12th to follow. I have also strengthened ties with regional partners, especially South Africa, the Southern African Development Community and international donors.
However, there is still work to be done, particularly in reducing our reliance on the region for trade, stock revenues and remittances by boosting agriculture, manufacturing and mining. I also aim to formalize the informal sector to increase domestic revenue. On governance, I am committed to national reforms, including constitutional amendments to reduce political instability, such as limiting no-confidence motions. Judicial and police reforms to tackle corruption are also a priority.
How do you see Lesotho’s place in the world in the modern era and do established practices need updating for your country and perhaps for Africa overall?
Lesotho faces a wide range of risks to its domestic economic outlook, including weak economic growth, poverty, inflation and public debt. Other challenges include high unemployment, the HIV/AIDS epidemic, infrastructure deficits and heavy reliance on South Africa for trade. Climate change vulnerabilities and a limited industrial base also impact Lesotho’s export-oriented industries, particularly textiles. For example, if the U.S. African Growth and Opportunity Act (AGOA) is not renewed, the decline in manufacturing could slow economic growth and job creation. Lesotho needs economic structural transformation, which requires financial capacity.
Support from development partners and financial institutions is essential, particularly for climate adaptation finance to address drought and other shocks. Strengthening the domestic economic base and sharpening public finance management and accountability are critical factors in establishing a basis for economic development. It is on the basis of the strong foundation that we can meaningfully participate in the global stage.
Lesotho is highly dependent on exports, including textiles to the US which are established under the AGOA, which is at risk of not being renewed. What is your message to the US public or even politicians who will be reading this interview?
Like many other projects, the future of AGOA remains uncertain as we approach 2025. Lesotho and other member states hope for an extension under the new administration, but we are also exploring ways to diversify our markets to stay competitive globally. While we plan to engage with the US government, we understand that any administration has the right to review its policies.
The sudden changes are the main challenge, however, if AGOA is renewed, Lesotho should change the approach. Lesotho has done comparatively well in textiles but our efforts for local ownership, exploration of other available opportunities and diversification, have been sluggish.
Guided by the government’s national strategy and our Smallholder Agriculture Development Project II, our focus for industrial growth includes expanding sectors like textiles, agriculture, renewable energy, hospitability, mining (especially diamonds) and light manufacturing. We are also prioritizing infrastructure development, particularly in transport as well as promoting innovation in digital technologies and industries like ICT and agro-processing. We need to be intentional to approach these sectors in a manner that the skills and energy that young people have are absorbed. The schemes that export youth skills and labour to other countries are one area to be explored.
Lesotho is a good country to do business with and countries should see it as an investment destination. The labour force is highly literate with a very peaceful culture conducive for productivity. Besides, Lesotho’s tourism is in a virgin state, the beautiful scenery should be harnessed. Lesotho stands better placed for investment due to its altitude and resources such as water, wind and sunshine to generate renewable energy. The list is endless. Therefore, I invite investors to come and explore opportunities in Lesotho.
In 2024, Lesotho’s economy had mixed results: manufacturing jobs declined by 3%, but profits rose 24% to $4 million. How do you envision 2025 and how will you measure success beyond financial performance?
The volatility of textiles which is the biggest aspect of our manufacturing sector is worrying. The renewal of AGOA will be highly appreciated but certainly will be handled differently. With the renewed vision we hope manufacturing will recover. There is a considerable hope that Lesotho should improve not only the financial performance but a shared growth as well. Increasing the number of people involved in the sector is a priority.
Can you explain what constitutional reforms are coming to Lesotho, how they will address current issues in the country and when the public can expect to see them enacted?
The reforms aim to improve our legal system and government procedures, ensuring inclusivity. They will stabilize politics, strengthen governance and allow the government time to deliver for the people. The Senate will soon conclude the 10th Amendment, with the 11th and 12th Amendments to follow.
What are the biggest obstacles you face in driving industrial growth and how can foreign investors help overcome them?
Lesotho benefits from its high altitude, with most of our water sources located between 3,000 and 4,000 meters above sea level, enabling gravity-driven water flow that can be converted into energy. We also need to transform our economy and attract investors by making Lesotho a business-friendly destination. Lesotho’s unique climate and geography, being the only country in the world entirely over 1000m above sea level, presents opportunities for high altitude activities but also difficulties from remoteness and a consequent lack of large-scale development.
Lesotho offers endless opportunities. As someone with a business background, I invite investors from America and around the world to visit and see the potential firsthand. We are eager to welcome investors, as Lesotho offers many untapped opportunities. We look forward to their support in making these opportunities a reality.
Why should investors choose Lesotho as a business, investment or travel destination?
Lesotho is a peaceful country with endless potential. I invite foreign investors to visit and explore the opportunities here. Our long-standing relationship with the US dates back to 1966, when we gained independence. The US has a diplomatic mission in Maseru and Lesotho has missions in Washington and New York, accredited to the United Nations. Our relationship is built on shared values, non-interference in each other’s affairs, sovereign equality and respect for international law.
The US has been a key partner to Lesotho and we are committed to strengthening this partnership. Lesotho views AGOA as a key driver for both the US and Lesotho’s prosperity. AGOA helps US businesses diversify supply chains and access cost-effective production, while Lesotho benefits from duty-free, quota-free exports to the US creating jobs and boosting the economy. Lesotho has attracted US businesses, including a solar energy deal that reduces costs. We are also in talks to bring companies like Starlink to Lesotho and are supporting the expansion of the American school to include primary, high school and college levels.
The US Peace Corps program is a symbol of our strong friendship. In recent years, many young Basotho have gone to the US, demonstrating leadership and professionalism. We are committed to strengthening our long-lasting relationship with the United States.