Maseru – The Government of the Kingdom of Lesotho has secured a major financial reprieve after the People’s Republic of China agreed to cancel interest free loans worth RMB 89.976 million, equivalent to about M214.466 million.
The agreement was signed on April 9, 2026, by Lesotho’s Minister of Finance and Development Planning, Dr Retšelisitsoe A Matlanyane, and China’s Ambassador to Lesotho, Yang Xiaokun.
The two loans were granted under bilateral cooperation agreements concluded in 2011 and 2012. The first facility, amounting to RMB 49.996 million or about M119.805 million, was signed on December 20, 2011. It financed the refurbishment of the Maseru Manthabiseng Convention Centre, a key venue used to host national, regional and international gatherings.
The second loan of RMB 39.98 million, approximately M95.904 million, was signed on June 27, 2012. It funded the UNCAO Mushroom Cultivation Project under Lesotho’s Ministry of Agriculture. Through this initiative, farmers were introduced to modern farming techniques aimed at improving low cost mushroom production, boosting food security and strengthening livelihoods.
Both loans were scheduled for repayment by the end of December 2024. Their cancellation now reduces pressure on Lesotho’s public debt and supports the country’s efforts to stabilise its finances and drive economic recovery.
Speaking during the signing ceremony, Dr Matlanyane described the agreement as timely and significant, noting that it reflects the strong and longstanding partnership between Lesotho and China. She said the debt relief will create fiscal space for the Government to redirect resources towards priority development areas.
The Government of Lesotho conveyed its appreciation to the Government of China for the gesture, saying it reflects mutual cooperation and a shared commitment to sustainable development.
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