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[BUSINESS] · Lesotho · 2 sources

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Lesotho signs strategic deal with ALSF to bolster contract negotiations

Lesotho has signed a three-year strategic partnership agreement with the African Legal Support Facility (ALSF) to enhance its capacity to negotiate major international contracts. The agreement, signed on September 21, 2026, aims to provide specialized legal and technical expertise across four key sectors: natural resources, energy, infrastructure, and sovereign finance.

The partnership builds on previous successes, most notably during the 2019 renewal of the Letšeng diamond mine concession. With ALSF's legal support, the Lesotho government successfully negotiated an increase in diamond royalties from 8% to 10%. The operator, Gem Diamonds, confirmed this increase alongside a ten-year concession extension.

This cooperation is vital for Lesotho's economy, as mining activities accounted for approximately 7.3% of the country's GDP in 2024, with diamonds representing nearly 24% of merchandise exports. Dr. Retšelisitsoe Matlanyane, Minister of Finance and Development Planning, stated that the agreement establishes a concrete framework to facilitate access to specialized support for priority national interest projects.

Entities

African Development Bank · African Legal Support Facility · Gem Diamonds · Lesotho · Letšeng mine