Who Leads Lesotho?

Leadership

Sam Matekane

Prime Minister of Lesotho

Political Party

Revolution for Prosperity

Inaugurated

Oct 28, 2022

Term Ends

2027

Next Election

2027

Born

Apr 15, 1958 in Qacha's Nek, Lesotho

Country Population

2.3M

Continent

Africa

Sam Matekane became Prime Minister in October 2022. A self-made mining magnate and one of Lesotho's richest people, he founded the Revolution for Prosperity party and won power promising to run the country like a business. He has focused on combating corruption, attracting investment, and improving infrastructure.

Other Leadership

King Letsie III serves as the Head of State of Lesotho. He has reigned since 1996, serving as a constitutional monarch. The King's role is largely ceremonial, with executive power resting with the Prime Minister.

Government

Capital

Maseru

Official Language(s)

Sesotho, English

Currency

Loti (LSL)

Government Type

Parliamentary Constitutional Monarchy

Area

30,355 km²

Lesotho is a small mountainous kingdom entirely surrounded by South Africa, the only country in the world entirely above 1,000 meters. Known as the 'Kingdom in the Sky,' it has dramatic highland scenery and is a major exporter of water to South Africa through the Lesotho Highlands Water Project. The country has a high HIV/AIDS prevalence and faces significant development challenges.

Lesotho is a constitutional parliamentary monarchy. King Letsie III has been the reigning king since 1996 (he also briefly reigned 1990-1995 before his father Moshoeshoe II was restored; then resumed after his father's death). Prime Minister Samuel Matekane (Revolution for Prosperity; RFP) has governed since October 28, 2022, after his new party won a plurality in the October 2022 elections. Lesotho has experienced severe political instability: there were military coups in 1986 and 1994; multiple constitutional crises; and between 2012 and 2022, five general elections. The National Assembly has 120 seats.

Economic Snapshot

GDP

$2.5B

GDP Per Capita

$1,100

Income Group

Lower-middle income

Trade Balance

Deficit

Inflation

7.2% (BOS, 2023)

Lesotho's development paradox is profound: it is literally sitting on a mountain of water (in a water-scarce subcontinent) and some of the world's most valuable diamonds, yet it is one of southern Africa's poorest countries with chronically weak governance. The LHWP is both an asset (royalty income; hydropower) and a reminder of dependence: Lesotho sells its water cheap (by international standards) to South Africa because it has no alternative buyer and no bargaining power. The AGOA textile industry is critical but fragile: approximately 40,000 workers (primarily women) employed in approximately 40 garment factories (Taiwanese; Chinese; South African-owned); jeans for American brands (Levi's; others); the third-country fabric provision of AGOA allows Chinese fabric to be assembled in Lesotho for duty-free U.S. access; if AGOA lapses or this provision is changed, the industry would likely close (it cannot compete without the duty-free preference). Lesotho's HIV/AIDS crisis (approximately 23-25% adult prevalence; second-highest in the world after Eswatini) is closely related to its labor migration history: Basotho miners working in South Africa were exposed to a much higher HIV risk environment than their home communities and transmitted HIV back to Lesotho; the epidemic has devastated families and the workforce; PEPFAR programs have improved ART coverage significantly.

Major Industries

• SACU revenue transfers (~30% of government revenue; customs revenue sharing with South Africa)
• Remittances (~20% of GDP; Basotho migrant workers in South African mines)
• Water (Lesotho Highlands Water Project; LHWP; sells water to South Africa via tunnels through the mountains; royalties approximately $30-50 million/year)
• Textiles & apparel (AGOA; approximately 40,000 workers; jeans; garments; U.S. export)
• Agriculture (maize; sorghum; wheat; peas; subsistence; limited by altitude and thin soils)

Lesotho is known for: Lesotho has the world's highest lowest point: the lowest elevation in Lesotho (approximately 1,400 m above sea level; at the Orange River/Senqu River gorge where it exits to South Africa) is higher than the highest point of approximately 90 countries. Lesotho is also known for the Lesotho Highlands Water Project (LHWP): a massive system of dams and tunnels through the Drakensberg Mountains that diverts water from the Orange/Senqu River system to South Africa's water-scarce Gauteng Province (Johannesburg; Pretoria); Lesotho earns significant royalties from this arrangement.

Trade Profile

Lesotho runs a trade deficit offset by SACU transfer payments (approximately 30% of government revenue) and remittances from South African miners (~20% of GDP). Without SACU transfers, Lesotho would be unable to fund its government.

Top Exports

• Textiles & apparel (~40-50%; AGOA; garments for U.S.)
• Water royalties (LHWP)
• Diamonds (Letšeng; high-value; minor volume)
• Wool & mohair (~10%)
• Manufactures (minor)

Top Imports

• Consumer goods (via South Africa; SACU; ~90% of goods)
• Petroleum products
• Food
• Machinery
• Vehicles

Export Destinations

• United States
• South Africa
• Belgium
• EU

Import Partners

• South Africa
• China
• Taiwan

The world depends on Lesotho for: Water (selling to South Africa via LHWP; critical for Gauteng's 20 million people), Letšeng Type IIa gem diamonds (world's highest per-carat value), and AGOA garment production

Lesotho depends on the world for: Almost everything via South Africa (SACU), and remittances from South African mines

Global Role

Lesotho's global significance is having the world's highest lowest point (~1,400 m above sea level), the Lesotho Highlands Water Project (selling water to South Africa; Katse Dam; 185 m), the Letšeng diamond mine (world's highest average-value per carat), being one of three countries entirely surrounded by a single country, and Africa's highest ski resort.

• Lesotho has the world's highest lowest point: the lowest elevation in the country (approximately 1,400 m; at the Senqu River gorge exit to South Africa) is higher than the highest point of approximately 90 countries; even Lesotho's valleys are at altitude; the capital Maseru is at approximately 1,600 m; the highlands exceed 3,000 m across large areas
• Lesotho is one of only three countries in the world completely surrounded by a single country (the others being San Marino and Vatican City, both surrounded by Italy); it is entirely surrounded by South Africa; this geographic reality makes its economy essentially entirely dependent on South African economic policy
• The Lesotho Highlands Water Project (LHWP) is Africa's largest single water infrastructure project: the Katse Dam (185 m; Phase 1A; 1996), Mohale Dam (Phase 1B; 2004), and under-construction Polihali Dam (Phase 2; 2020s+) form a system that diverts water from the Orange/Senqu River through tunnels under the Drakensberg to South Africa's Vaal River system serving Johannesburg and Pretoria (approximately 20 million people); Lesotho earns approximately $30-50 million/year in royalties
• The Letšeng diamond mine (3,100 m altitude; Drakensberg; operated by Gem Diamonds 70%; Lesotho government 30%) has the world's highest average price per carat of any diamond mine (approximately $2,000-2,500/carat vs industry average approximately $100-150/carat): its Type IIa diamonds (structurally pure; rare) include some of the world's largest gem diamonds found in recent decades; the 603-carat Lesotho Promise was found here in 2006
• Africa's only ski resort of note is in Lesotho: Afriski Mountain Resort (3,222 m; Maloti Mountains; northern Lesotho) is Africa's highest ski resort and the only one with significant snowfall in most winters; it attracts South African winter tourists; the existence of a ski resort in Africa is itself remarkable
• The Basotho nation was founded by King Moshoeshoe I (approximately 1786-1870): one of Africa's greatest diplomatic leaders; he assembled disparate Sotho-Tswana-speaking people into the Basotho nation during the Mfecane (the 19th century wave of migrations and conflicts in southern Africa); he used diplomacy (rather than primarily military force) to neutralize the Boer republics; he asked to become a British Protectorate in 1868 (Basutoland) to prevent absorption by the Orange Free State; this strategic choice preserved Lesotho's existence as a separate entity and eventually led to independence rather than incorporation into South Africa
• Lesotho's chronic political instability: between 2012 and 2022, Lesotho held five general elections and experienced two attempted coups (2014; 2017); the political fragmentation (no party has won an outright majority in any election since 1998) has made governance extremely difficult; PM Motsoahae Thomas Thabane resigned in 2020 amid murder charges (he and his current wife were accused of murdering his previous wife); Prime Minister Matekane's RFP party (formed just 3 months before the 2022 election) won the most seats with approximately 35% of votes

Frequently Asked Questions

Who governs Lesotho?

Prime Minister Samuel Matekane (Revolution for Prosperity; RFP) has governed since October 28, 2022, after his newly-formed party (created just 3 months before the October 2022 elections) won the most seats. Matekane is a businessman (mining and contracting). King Letsie III has been the constitutional monarch since 1996. Lesotho has experienced extreme political instability: five general elections between 2012 and 2022; attempted coups in 2014 and 2017; a scandal involving former PM Thabane and his wife being charged with murdering his previous wife (2020). The RFP's victory was seen as a desire for fresh governance outside the established parties.

What is the Lesotho Highlands Water Project?

The Lesotho Highlands Water Project (LHWP) is Africa's largest water infrastructure project: a system of dams and tunnels that diverts water from the Orange/Senqu River system in Lesotho's mountains through tunnels under the Drakensberg to South Africa's Vaal River (serving Johannesburg and Pretoria; approximately 20 million people). The 1986 Treaty between Lesotho and South Africa established the project. Phase 1 built the Katse Dam (185 m tall; one of Africa's tallest) and Mohale Dam; Phase 2 is building the Polihali Dam (under construction 2020s). Lesotho earns approximately $30-50 million/year in water royalties and generates hydropower (Muela plant; 72 MW) for domestic use. The project is why South Africa has adequate water despite being a semi-arid country.

What makes Lesotho's diamonds so valuable?

The Letšeng mine (3,100 m altitude; Gem Diamonds 70%; Lesotho government 30%) has the world's highest average diamond price per carat (~$2,000-2,500/carat vs industry average of ~$100-150/carat). The mine produces Type IIa diamonds: a rare category (less than 2% of diamonds are Type IIa) characterized by structural purity (essentially no nitrogen impurities), colorlessness, and exceptional transparency. These stones are used for the finest gem jewelry and investment purposes. Famous Letšeng diamonds include the 603-carat Lesotho Promise (2006), the 550-carat Letšeng Legacy (2007), and several other exceptional stones exceeding 100 carats. The mine produces relatively few carats per year but earns exceptional prices.

Related Countries

• South Africa: South Africa completely surrounds Lesotho; SACU membership (~90% of imports from South Africa); LHWP (Lesotho sells water to South Africa; critical for Gauteng's 20 million people); SACU transfer payments fund approximately 30% of Lesotho's government budget; Basotho mine workers in South Africa send remittances (~20% of GDP)
• Eswatini: Both are tiny landlocked SACU kingdoms almost entirely surrounded by South Africa; both are Commonwealth members; both have high HIV rates; comparison of small southern African kingdom governance
• Botswana: Both are SACU members; comparison of southern African small state governance; Botswana's diamonds vs Lesotho's Type IIa gem diamonds
• Namibia: Both are SACU members; comparison of southern African development paths; SACU revenue transfer mechanisms affect both
• United States: AGOA garment exports (~50% of Lesotho exports go to U.S.; approximately 40,000 workers in textile factories); U.S. is Lesotho's most important merchandise export destination
• Belgium: Antwerp (Belgium) is the world's diamond trading capital; Letšeng diamonds are sold and valued in the Antwerp diamond market