Lesotho - Economic Diversification Support Project

Project Summary

Approval Date	16 Dec 2016
Signature Date	02 Feb 2017
Planned Completion Date	31 Mar 2023
Last Disbursement Planned Date	31 Mar 2023
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	15124
Environmental Category	3
Commitment	U.A 7,220,000
Status	Implementation

Project General Description

The Economic Diversification Support Project (EDSP) aims to support the revamping of Lesotho’s economy, by focusing on the private sector development pillar and building public sector capacity in policy planning, implementation and results monitoring leading to sustained reforms. The Project will complement and enhance the effectiveness of the Bank’s ongoing initiatives by focusing on selected sectors critical for economic diversification, and promoting enterprise development through supporting SMMEs to develop entrepreneurial skills, create linkages with large scale firms through mentorship programs, improve their access to the services of financial institutions and enhance their access to markets. These will be achieved through the following three mutually reinforcing components: (i) enhancing economic diversification; (ii) promoting enterprise development; and (iii) project management support.

Project Objectives

The overall development objective is to contribute to inclusive growth through enhanced economic diversification and strengthened enterprise development. The specific objective of the Project is to support private sector development through improving partnership, entrepreneurship and skills development, and investment promotion in the selected sectors critical for economic diversification.

Beneficiaries

The main beneficiaries are SMMEs and the youth who will be supported in business startups and those who wish to expand their business operations. The direct project beneficiaries include the Ministry of Trade and Industry; Ministry of Small Business Development, Cooperatives and Marketing; Ministry of Finance; Ministry of Development Planning, Ministry of Tourism, Environment and Culture; Lesotho National Development Corporation, Basotho Enterprises Development Cooperation; and Lesotho Tourism Development Cooperation. Overall, the private sector will benefit from the improved business environment that is expected to materialize from the dialogue process and the public-private partnerships that will emerge.

Participating Organization

Implementing

Ministry of Trade and Industry

Implementing

GOVERNMENT OF LESOTHO MINISTRY OF FINANCE

Funding

African Development Fund

Information

IATI identifier	46002-P-LS-KF0-002
Last Update	24 Mar 2023

Export

Contact Details

Name	Baboucarr KOMA
Email	b.koma@afdb.org

Geographic Location

Country	Lesotho

Coordinates	Location Name
-29.5833 27.8333	Maseru

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	Project Type Interventions

Commitments

U.A 7,220,000

African Development Fund

U.A 5,000,000

African Development Fund

U.A 2,220,000

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
Appraisal report	fr	LESOTHO1 - Approuvé Projet d appui à la diversification éco PADE
Appraisal report	en	LESOTHO1- Approved Economic Diversification Support Project EDSP
Contract	en	LISTING OF AWARDED CONTRACTS FROM 2012 TO 2017 AS AT OCT 2017
Contract	en	LISTING OF AWARDED CONTRACTS FROM 2013 TO 2018 AS AT SEPT 2018
Contract	en	listing of awarded contracts from 2014 to 2019 as at january 2020
Contract	en	listing of awarded contracts from 2014 to 2019 as at october 2019
Contract	en	LISTING OF AWARDED CONTRACTS FROM 2013 TO 2018 AS AT JAN 2019
Contract	en	LISTING OF AWARDED CONTRACTS FROM 2013 TO 2018 AS AT APRIL 2019
Contract	en	listing of awarded contracts from 2015 to 2020 as at february 2021
Evaluation Report	en	viewer
Evaluation Report	en	viewer
Expression of interest	en	EOI – Lesotho - Individual Consultant to Develop the Lesotho Tourism Digital Marketing Campaign and Destination Management System Website And Market Research Survey in the Five Key Inte...
Expression of interest	en	EOI – Lesotho - Consulting Services for Institutional Review of the Lesotho Tourism Development Corporation - Economic Diversification Support Project
Expression of interest	en	EOI – Lesotho - Development of the Lesotho Tourism Marketing Strategy and Implementation Plan - Economic Diversification Support Project
Expression of interest	en	EOI – Lesotho - Support to the Development and Delivery of the National Microfinance Program - Economic Diversification Support Project
Expression of interest	en	EOI – Lesotho - Feasibility Study for the Development of a Call Centre in Lesotho - Economic Diversification Support Project
Expression of interest	en	EOI – Lesotho - Consultancy Firm to Develop Tourism Specific Investment Policy With Related Incentive Package - Economic Diversification Support Project
Expression of interest	en	viewer
Expression of interest	en	EOI - Lesotho – Request for Curriculum Vitae - Consultant to facilitate the re-establishment of Lesotho council for tourism - Economic diversification support project - ESDP
Expression of interest	en	EOI - Lesotho – Request for Curriculum Vitae - Development of the operational framework for a competitive grant scheme for youth enterprises - Economic diversification support project - ESDP
Expression of interest	en	EOI – Lesotho - Consultancy Firm to Design and Establish the National Standardization Body for Lesotho - Economic Diversification Support Project
Expression of interest	en	EOI - Lesotho - Review of Tourism Policy and Legal Framework and Development of a National Tourism Master Plan - Economic diversification support project
Expression of interest	en	EOI – Lesotho - Consulting Services - Promoting Enterprise Development - Economic Diversification Support Project
Expression of interest	en	viewer
Expression of interest	en	EOI - Lesotho – Request for Curriculum Vitae - Value chain analysis for the skin leather and footwear sector - Economic diversification support project - ESDP
Expression of interest	en	EOI - Lesotho – Request for Curriculum Vitae Development of a national standardization strategy and action plan - Economic diversification support project - ESDP
Expression of interest	en	viewer
Expression of interest	en	viewer
General Procurement Notice	en	GPN - Lesotho - Economic Diversification Support Project

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
Number of new SMMEs created	Number	2016	50.0	2020	10.0
Number of new SMMEs created - earned by women	Number	2016	25.0	2020	5.0
Number of jobs created	Number	2016	1200.0	2020	10.0
Number of jobs created - of which are for women	Number	2016	600.0	2020	5.0
Staff trained on investment promotion	Number	2016	10.0	2020	0.0
Staff trained on investment promotion - of which women	Number	2016	5.0	2020	0.0
Tourism and Market development	None	2016	Tourism policy, Masterplan and marketing developed and approved	2020	Tourism policy, Masterplan and Tourism Investment Promotion Policy and Incentives approved
National Tourism Council establishment	None	2016	National Tourism Council (NTC) established and staffed	2020	Draft diagnostic report produced
Guidelines for policy formulation, implementation, M&E	None	2016	Detailed guidelines for policy formulation, implementation, M&E produced	2020	Guidelines for policy formulation and Economic Planner’s Manual
Prefeasibility studies/Feasibility studies in selected sectors	Number	2016	5.0	2020	5.0
Investment compendium production	None	2016	Investment Compendium produced	2020	Draft compendium
Tailor-made training in tourism, hospitality, leather/footwear value chains	Number	2016	4.0	2020	0.0
National Standardisation strategy	None	2016	National Standardisation strategy adopted	2020	Draft strategy developed
LSI capacity strengthened	None	2016	8 officers receive specialized training; ICT and testing equipment procured	2020	Training need assessment report prepared
Business incubation strategy & program	None	2016	Incubation strategy developed	2020	Business incubation strategy approved
Institutional review of Business Development Service (BDS) providers	None	2016	BDS Institutional Review Report	2020	BDS assessment report
Proportion of Basotho Enterprises Development Cooperation (BEDCO) technical staff trained by 2019 (50% women)	%	2016	100.0	2020	0.0
Toolkits and training packages for enterprise development	None	2016	Training toolkits developed; 10 BDS providers trained, 50% being women and youth	2020	Not available
Partnership program for entrepreneurship in place	None	2016	Partnership program for entrepreneurship designed	2020	Not yet
Entrepreneurship training curricula rolled-out across training institutions	None	2016	Yes	2020	Not yet
Apprenticeship program developed	None	2016	Apprenticeship program designed & 50 young entrepreneurs get on-job training, 50% of whom are females	2020	Apprenticeship program adopted
Microfinance program developed	None	2016	Microfinance program designed and implemented	2020	Microfinance program design completed
Operational framework for the competitive grant scheme	None	2016	Operational framework for the competitive grant scheme reviewed	2020	Operational framework completed
Percentage of SMMEs that access Business Development Services (BDS)	%	2016	40.0	2020	10.0
Innovative business plan competition	None	2016	Business plan competition program developed	2020	Business plan competition introduced; 10 businesses identified and incubated/trained, 60% of which are women-owned
Number of SMME owners trained in entrepreneurship skills	Number	2016	100.0	2020	0.0
Number of SMME owners trained in entrepreneurship skills - of which women	Number	2016	50.0	2020	0.0
Project implementation reports /reviews prepare	None	2016	Annual progress reports, and 4 audit reports submitted	2020	Quarterly report submitted