MCA-LESOTHO II TO CLOSE OFFICIALLY

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MCA-LESOTHO II TO CLOSE OFFICIALLY
MCA-LESOTHO II TO CLOSE OFFICIALLY

Africa-Press – Lesotho. The Deputy Prime Minister Justice Nthomeng Majara has reassured the nation that the government remains committed to continuing with the Lesotho Business, Health and Horticulture compact despite the official closure of Millennium Challenge Account-Lesotho II (MCA) on April 18, 2026.

This she said in her statement delivered on Tuesday, indicating that the country received Millennium Challenge Corporation’s (MCC) final termination notice on November 19 this year, saying the remaining months will allow for the winding up of the MCA-Lesotho II.

Justice Majara said the government understands the implications this situation has for business, health and horticulture projects, the communities it benefits and the Basotho nation, particularly during these challenging times of a slow economy and high rate of unemployment.

“The government of Lesotho highly values the partnership established through the compact and understands the anxiety which comes with its termination,” she stressed, reassuring that the government remains committed to continuing with the program.

She indicated that in collaboration with MCA-Lesotho II, the government has made significant progress in restructuring the project to ensure it continues after closure.

She emphasized that improving health outcomes, supporting business development, and enhancing agricultural productivity remain top priorities for the country.

“We are committed to maintaining transparency throughout this process and will ensure that the nation is regularly updated on its transition to the government of Lesotho in taking over the funding and implementation of the program,” she added, acknowledging that this transition will require time, and urged the nation to be patient and understanding during this period.

“Let us continue to unite in the spirit of resilience and collaboration, address this matter with the urgency it deserves, together, we can navigate these challenges and work towards a brighter future for Basotho,” she added.

The implementation of the Lesotho business, health and horticulture compact, which was supported with funding from the United States of America through MCC was halted due to the executive order, which was issued in January 2025 by the US President, which mandated a temporary pause on all US foreign assistance programs.

The government of Lesotho therefore issued a statement in April this year, regarding the 90-day foreign assistance review of the compact, initiated by the US government.

In addition, on July 24, 2025, the Minister of Finance and Development Planning being the principal, received formal communication from the MCC on the outcome of the foreign assistance review and its recommendations thus the review had recommended the termination of the Lesotho health and horticulture compact. Following the recommendation by the foreign assistance review, the MCC board of directors therefore adopted the recommendation.

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