Lesotho generates around $200 million a year by exporting water to South Africa through the Lesotho Highlands Water Project (LHWP). The project, which began in the 1980s, channels water from Lesotho’s highlands to South Africa’s Vaal River system, supplying cities like Johannesburg and Pretoria.
Recent recalculations of royalties have increased Lesotho’s monthly earnings from M130 million to M298 million, highlighting the economic importance of the water trade. This revenue is a significant portion of the country’s income, supporting a nation with limited natural resources and a small industrial base.
However, despite the financial gains, many rural communities near the water infrastructure still lack access to clean drinking water, raising concerns about equitable distribution. Looking ahead, the construction of the Polihali Dam is expected to boost water delivery and revenue even further.
Lesotho’s water exports underscore the country’s vital role in Southern Africa’s water supply while highlighting ongoing challenges in managing resources fairly.
