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Lesotho’s Matekane courts carbon-market cash, partners for water and clean power

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By Lebone Rodah Mosima 

Lesotho Prime Minister Sam Matekane has asked global partners to back climate and resource smart projects in emerging economies, pitching his mountain kingdom as a base for renewable-powered data centres and a potential exporter of “dispatchable green power” into the Southern African grid.

Speaking at the World Governments Summit (WGS) in Dubai, Matekane said sustainability had become “both a constraint on growth and a competitive strategy”.

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He said that emerging economies were now central to innovation, resilience and inclusive growth, and that governments needed proactive leadership to shape the shift to low-carbon growth, digital transformation and changing trade patterns.

“In a world of constant shocks — energy, climate, or geopolitics — resilience is the new growth model,” Matekane said.

“Countries that secure affordable and clean power, reliable water, and climate-smart food systems will grow faster, protect their citizens, and remain competitive.”

The WGS, held annually in Dubai since 2013, ran from 3 to 5 February under the theme Shaping Future Governments.

It drew more than 500 ministers and representatives from over 150 governments, according to the WGS.  

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Matekane said smaller and vulnerable economies should use multilateral platforms to ensure global governance remained “fair, responsive and inclusive”.

 “As a small, land-linked economy and the water tower of the Southern African Region, our strategic importance is far larger than our size,” he said.

Lesotho’s priorities include expanding renewable energy — hydropower, solar and wind — to cut reliance on imported electricity and support households and industry, Matekane said.

“Our focus is simple: we want to execute climate and resource smart projects,” he said.

“Abundant water and cool weather position Lesotho as the best place to invest in setting up data centres and global connectivity via renewable energy production.”

Matekane said Lesotho could exceed 1,000 megawatts by combining existing and planned hydropower capacity, and that the electricity would be monetised through peak and balancing power sales into the Southern African Power Pool, ancillary services at home, and independent power production.

On adaptation, he said Lesotho was pursuing community-based programmes to address drought, erratic rainfall and soil erosion, alongside stronger early-warning systems and disaster preparedness.

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“That is why we are opening opportunities for carbon-credit viable preservation and rehabilitation programmes,” he said.

“These include catchment restoration, wetland protection, invasive species removal, and climate adaptation. Protecting this ecosystem is not optional; it is an economic imperative.”

He also shared plans to promote agro-processing, value addition and climate-smart agriculture to boost food security, jobs and export earnings.

“We can irrigate at scale; increase cropping intensity and supply agro-processing reliably,” he said.

On water security, Matekane pointed to the Lesotho Highlands Water Project, which began more than three decades ago, as a regional supply and hydropower anchor.

He said Lesotho planned future investments in the Lesotho-Botswana Water Transfer in coming years, with potential expansion to Namibia.

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“Lesotho is of course the water source and gateway of the Senqu Basin region, underpinning a US$450 billion sub-regional economy across Southern Africa that serves over 60 million people,” he said.

“We are ready to collaborate with partners across regions – we recognise this mix of public and private investments has a strong multiplier effect on employment and economic growth,” he said. “We are therefore committed to leveraging investments for inclusive human progress and development.”

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