Lesotho has received the final termination notice for the US$300 million (about M6bn) business, health and horticulture compact, a project supported by the United States through the Millennium Challenge Corporation (MCC).
Compact II was officially launched in April 2024, following its approval in 2022.
In a statement on Tuesday, Deputy Prime Minister Nthomeng Majara announced that the government received the MCC’s final termination notice on November 19, with the remaining months allowing for the winding up of the Millennium Challenge Account-Lesotho II (MCA-Lesotho II) by April 18, 2026.
“The government understands the implications of the closure to the nation, particularly communities where the project was going to be implemented, the farmers who had committed their fields, the youth, women, and other sectors including businesses,” Majara said.
She noted that Lesotho has made significant progress in restructuring the project to ensure its continuation and is committed to maintaining transparency throughout the transition process.
“We are committed to maintaining transparency throughout this process and will ensure that the nation is regularly updated on its transition to the government of Lesotho taking over the funding and implementation of the programme,” Majara added.
The project aimed to improve health outcomes, support business development, and enhance agricultural productivity, with goals including upgrading 138 health centres and 14 hospitals, installing 30,000 improved pit latrines, and delivering portable water to 95,000 households in Maseru District.
