Maseru – Government of Lesotho and the United States celebrated the commencement of the Millennium Challenge Account’s second compact on Thursday 11 April.
The implementation clock started ticking on 30 March 2024, and is set to last for five years.This second compact involves a significant investment of $300 million from the U.S. government, matched by an additional $22.5 million from the government of Lesotho.
These investments go beyond mere infrastructure or health systems; they are fundamentally about improving the lives of the Basotho people. Building on the success of the first compact of $362 million MCC and GOL, which concluded in September 2013, the new compact aims to further enhance water supply, increase access to essential health services, and remove barriers to private sector investment.
The health projects under the first compact included training health practitioners in infection prevention and disease control. The focus of the second compact is on investing in the economic potential of Basotho.
Dr. Retselisitsoe Matlanyane, the Minister of Finance and Development Planning, emphasized that the market-driven Irrigated Horticulture Project is not just about irrigating 1500 hectares of land; it is about improving livelihoods and communities’ economic well-being.
The MCC’s approach includes policy and institutional reforms to bring about systematic, long-term changes, such as improvements in fertilizer and seed markets, trade policy, product regulation, and fiscal reform.
The compact aims to empower farmers with modern techniques, market linkages, and sustainable practices, turning fallow lands into thriving orchards and farms. Land registration is set to begin approximately a year from now, safeguarding ownership and land rights and paving the way for the construction of irrigation infrastructure and dams.
The Millennium Challenge Account (MCA) and its contractors are committed to completing the infrastructure on time to enable the first production cycle around the year 2027.
This compact also supports the Government of Lesotho’s efforts to care for survivors of Gender-Based Violence (GBV) and reduce the high incidence of GBV.
This includes strengthening referral pathways and coordinating forums to implement relevant elements of the counter Domestic Violence Law passed in 2022. Under the health systems strengthening project, the government aims to build a robust healthcare system and increase access to quality services, improving health outcomes across the nation.
“By the end of next year, 2025, this project will institutionalize a health management information system (e-Register) for use in primary healthcare services,” explained Matlanyane.
The envisioned outcomes of the compact include a significant reduction in food imports, increased self-reliance, improved private sector participation in policy formulation, and job creation.
It is estimated that more than 90,000 jobs will be created over time, directly and indirectly, thus enhancing economic growth and reducing poverty.
Prime Minister Samuel Ntsokoane Matekane noted that the entry into force of the compact coincides with a defining moment for Basotho as they celebrate and commemorate 200 years of the Basotho nation.
