EU-Lesotho Partnership

Then-EU development commissioner Andris Piebalgs with Lesotho’s ministers for finance and development planning at the signing ceremony of the EU’s 2014-2020 national indicative program for the African country. Photo by: European Commission The European Union has extended its long-standing partnership with Lesotho with the release of its 2014–2020 country strategy. The new plan outlines EU’s efforts toward achieving its overarching goal of eradicating poverty in the southern African country by way of sustainable measures, integration with the global economy, and the promotion of democracy, human rights and rule of law. The partnership supports Lesotho’s National Strategic Development Plan, which articulates the government’s strategy for reducing poverty and achieving sustainable development. While the country has made significant progress in establishing a stable democratic government, bottlenecks in its key sectors still exist. With high export potential, water is considered as the country’s prime resource. Yet in spite of its abundance, collection and distribution remain limited. According to EU data, only 77 percent of the population has stable water supply, while only 26 percent and 31 percent of rural and urban households, respectively, have access to sanitation services. The government also notes gaps in the energy sector, as access to electricity remains restricted to a mere 25 percent of the population due to outdated power distribution networks and energy infrastructure. Other challenges identified by the EU include strengthening state institutions, addressing climate change, combating HIV and AIDS, and broadening social protection. Funding levels (2014-2020) EU assistance to Lesotho under the A-allocation of the 11th European Development Fund amounts to 142 million euros ($164.55 million). This will be used to finance macroeconomic support as well as sectoral policies, programs and projects. As illustrated below, Lesotho has enjoyed increasing levels of funding since the ninth EDF cycle, which covered fiscal years 2001–2006. As part of EU’s strategy, a B-allocation envelope will also be made accessible should any unforeseen expenditures arise. This could be used to cover humanitarian assistance, emergency and post-emergency support, and debt relief contributions. The total funding for the B envelope will be determined as the need arises. Both A and B-allocations may be revised on the basis of midterm and end-of-term reviews. Funding priorities In its NSDP, the government of Lesotho outlined its development agenda, which include sustaining fiscal consolidation, upgrading water and energy infrastructure, fostering private sector growth, developing human resources, and combating HIV and AIDS. To assist the government in its efforts, the EU-Lesotho partnership strategy will focus on three key areas: Water: Support in this area will focus on widening the reach of water sanitation and distribution to industries, commercial centers and households. Energy: Interventions in this sector will be geared toward expanding access to low-cost, clean and reliable supply of electricity. Governance: This component will focus on strengthening government institutions to increase efficiency in the delivery of public goods and services. The 28-member bloc sees strengthening the water and energy sectors as a crucial to enabling economic development and raising the standard of living in Lesotho since both are intrinsically linked with climate change adaptation, increasing agricultural productivity and raising competitiveness of local businesses. Meanwhile, the EU also realizes that enhancing governance in areas such as public finance management, decentralization and the protection of human rights would not only improve public service delivery, but also contribute to a more effective implementation of development activities across all sectors. Below is a breakdown of the EU A-allocation by intervention area. Devex analysis The EU has supported Lesotho with increasing levels of funding through much of the past four decades and will continue to engage the country as one of its beneficiaries for years to come. As a lower-middle-income country, Lesotho needs to further strengthen its economy and continue its pursuit for inclusive development. While several opportunities for growth are apparent, the EU notes that existing gaps in governance could deter achievements in its target sectors. With several ongoing and planned initiatives in the water and energy sector, strong political will to continue building on previous efforts and effectively pursue sectoral reforms will be of high importance. Taking this into consideration, the EU has committed to supporting the government in preparing implementation plans that are backed by risk management measures. Strengthening the governance sector will be the most challenging of all the EU objectives due in large part to weak oversight mechanisms. Close management of capacity-building programs will therefore be crucial during this funding period. The EU also noted the importance of supplementing this effort with frequent stakeholder dialogues and assessment of risks. Preparations are already underway for Lesotho’s next general elections, scheduled to be held in February this year. Last December, an electoral pledge among political parties and a memorandum of understanding between the Lesotho Defense Force and the Lesotho Mounted Police Service were signed, to which the EU, U.N. and U.S. diplomatic missions in Lesotho expressed their approval. The 28-member bloc also stressed the importance of having peaceful and credible elections for the country to continue on its path to progress. With much at stake, the EU, along with the rest of Lesotho’s development partners stand ready to support the Southern African country during this crucial period. Contact Delegation of the European Union to the Kingdom of Lesotho Tel: (266-22) 272-200 Fax: (266-22) 272-255 Email: