MASERU – Lesotho and China have intensified their alliance after signing an agreement to cancel part of Lesotho’s debt. The deal was signed on Thursday in Maseru.
Finance and Development Planning Minister Dr. Rets’elisitsoe Matlanyane signed on behalf of the Lesotho government while China’s Ambassador to Lesotho, Yang Xiaokun, signed for the Chinese government.
Under the new protocol, China will disregard two interest-free loans worth a total of M214.466 million. The loans were supposed to be paid back by the end of December 2024.
Minister Matlanyane explained that the first loan, M119.805 million, was given in 2011 under the Economic and Technical Cooperation Agreement. It was used to renovate the Manthabiseng Convention Centre. The second loan, M95.804 million, was given in 2012 for the JUNCAO Mushroom Cultivation Project, which teaches farmers how to grow mushrooms using grass technology to improve food security and create jobs.
The Minister said the waiver is good news for both the government and people of Lesotho. “This decision gives us important relief,” she said. “It will help us manage our public debt better and support our plans to keep government spending under control.” Lower debt means the government can use more money for services like health, education, and roads.
Ambassador Xiaokun said the loan cancellation follows a promise made by President Xi Jinping. Last year, President Xi announced that China would cancel all interest-free government loans due by the end of 2024 for the least developed African countries that have diplomatic ties with China. Lesotho is one of those countries.
“This signing shows the principles that guide China’s work with Africa,” the Ambassador said. “We respect the sovereignty and independent choices of African countries. We do not interfere in their internal affairs.” He added that Chinese companies have created more than 1.1 million jobs in Africa over the past three years.
Lesotho and China have worked together for many years on different projects. China has helped build several major facilities in the country, including the State Library, the New Parliament Building, and the Maseru District Hospital.
Officials from both countries said the loan waiver is another sign of the strong friendship and cooperation between Lesotho and China. They hope to continue working together on development projects that benefit the people of Lesotho.
