Despite persistent challenges, Lesotho offers promising opportunities across its energy sector. With abundant solar, wind, and water resources, the country is well-positioned to expand renewable energy generation. Currently, Lesotho meets about 50 percent of its peak energy demand through domestic hydroelectricity, and it has the potential to supply surplus power to the Southern African grid. The government aims to achieve 100 percent renewable energy production within the decade by expanding hydropower through Phase II of the Lesotho Highlands Water Project and launching multiple solar and wind initiatives. A centerpiece of this vision is King Letsie III’s $1 billion Just Energy Transition (JET) Fund, designed to generate 3,000 MW of renewable energy through a three-phase national rollout. Phase 1 includes 1,470 MW from the Kobong Pumped Storage Scheme and the Maputsoe solar farm, alongside a new transmission line to South Africa’s Venus substation. Phase 2 adds 330 MW of wind, solar, and hydro capacity, while Phase 3 will expand the Letseng wind farm by 1,000 MW, positioning Lesotho as a clean energy exporter. The JET Fund will operate as a corporate-guaranteed structure based in London. As electricity demand grows, the government is advancing projects to reduce reliance on imports, capitalize on carbon credits, and expand off-grid solar solutions for rural communities. These developments create significant openings for technical experts in energy generation and distribution.

Lesotho has established itself as a significant player in the textile and garment industry taking advantage of the African Growth and Opportunity Act (AGOA) to export to the United States. The country’s low labor costs and proximity to South Africa make it an attractive location for textile manufacturing. Lesotho imports almost all of its manufacturing inputs and consumer goods. Opportunities exist to introduce new consumer goods and invest in manufacturing for both local and international markets. Please visit AGOA on https://agoa.info/ 

Lesotho’s rich cultural heritage, beautiful landscapes, and outdoor adventure opportunities create a solid foundation for tourism.  There is growing interest in activities such as hiking, canoeing, mountain climbing, camping, horse riding, fishing, and bird watching. The government is focusing on developing tourism infrastructure and providing incentives for investors in accommodation development, tour operations, and related services. The government has expressed interest in attracting more U.S. tourists and U.S. investment in the sector. Lesotho has one of the most pristine and unspoiled natural environments in the region, with attractive scenery and potential for eco-tourism. The rugged countryside makes Lesotho ideal for off-road sports; Lesotho hosts the “Roof of Africa” motorcycle rally every year. It has the world’s longest commercial single-drop abseil at204m. 
 
Lesotho is known for its large and high-quality diamonds, and the mining sector has potential. Its mining operations are mostly concentrated on diamonds.  The country has multiple operating mining companies. The mining sector offers opportunities for investment in exploration and processing of diamonds. The Ministry of Mines undertook surveys which reflected potential for additional mines. The government believes there could be an opportunity to explore other areas of mining, including critical minerals. 

Lesotho has a comparative advantage in producing high-quality agricultural products, supported by its favorable climate and abundant water resources relative to other countries in the region. The government is prioritizing sector modernization to boost exports and strengthen food security. There are investment opportunities in horticulture, poultry, and dairy farming, as well as in the country’s established wool and mohair industries, which primarily export to South Africa. Additionally, Lesotho exports water to South Africa and has plans to expand exports to Botswana and Namibia. As the sector grows, there are also emerging opportunities for U.S. companies and investors to supply agricultural inputs—including improved seeds, fertilizers, and equipment—to help increase productivity and meet growing domestic and export demand.  Opportunities in commercial agriculture include trout farming, livestock, and horticulture.

The construction of dams under the Lesotho Highlands Water Project (LHWP) has led to opportunities in the aquaculture space. Lesotho currently has two companies that export trout to South Africa, Japan, and the United States.  The completion of the Polihali Dam will provide more opportunities for new companies to enter into this sub-sector. There are also opportunities for U.S. businesses in franchising, restaurants, services, retail shops and hotels. The commercial agriculture sector which includes trout farming, livestock, and horticulture is another area of opportunity.