What You Need to Know
The Kingdom of Lesotho has secured a waiver of M214 million in interest-free loans from China, signed by Finance Minister Dr. Retšelisitsoe A. Matlanyane. This debt relief, stemming from agreements made in 2011 and 2012, will alleviate pressure on Lesotho’s public debt and allow the government to focus on priority development areas.
Africa-Press – Lesotho. The Government of the Kingdom of Lesotho had signed an agreement with the People’s Republic of China for the waiver of two interest-free loans amounting to RMB 89.976 million (approximately M214.466 million). The agreement was signed by the Honourable Minister of Finance and Development Planning, Dr. Retšelisitsoe A. Matlanyane, and the Ambassador of China to Lesotho, Yang Xiaokun.
The loans were extended to Lesotho under bilateral cooperation agreements signed in 2011 and 2012. An amount of RMB 49.996 million (approximately M119.805 million), agreed on 20 December 2011, was allocated for the refurbishment of the Maseru Manthabiseng Convention Centre. This project aimed to enhance the country’s capacity to host national, regional, and international events.
A second loan of RMB 39.98 million (approximately M95.904 million), signed on 27 June 2012, funded the JUNCAO Mushroom Cultivation Project under the Ministry of Agriculture. The project introduced modern agricultural techniques, enabling farmers to adopt efficient, low-cost mushroom production methods while strengthening food security and livelihoods.
The loans were due for repayment by the end of December 2024. The waiver of this debt provides significant relief to Lesotho’s public debt portfolio and supports ongoing efforts towards prudent fiscal management and economic recovery.
Speaking at the signing ceremony, Dr. Matlanyane described the agreement as timely and significant, noting that it reflects the strong and longstanding partnership between Lesotho and China. She emphasized that the debt relief will create fiscal space for the Government to redirect resources towards priority development areas.
The Government of Lesotho expressed its sincere appreciation to the Government of China for the gesture, which underscores the principles of mutual cooperation, partnership, and shared commitment to sustainable development.
Lesotho has historically relied on international partnerships for development funding, particularly from China. The loans in question were part of bilateral agreements aimed at enhancing infrastructure and agricultural productivity. The waiver of these loans marks a significant step in Lesotho’s efforts to manage its public debt and stimulate economic growth, reflecting the importance of international cooperation in achieving sustainable development goals. This agreement also highlights the ongoing relationship between Lesotho and China, which has been characterized by mutual support and shared development objectives.
