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.


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

Ministry of Trade and Industry
African Development Fund


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


Contact Details

Name Baboucarr KOMA
Email b.koma@afdb.org

Geographic Location

Country Lesotho
Coordinates Location Name
-29.5833 27.8333 Maseru