Maseru, Aug. 18 — Lesotho wants to move beyond seeing its diaspora only as a source of money sent to families, and instead work with Basotho abroad as partners in national development, business growth and technology transfer.
This was the focus of a validation workshop for the National Diaspora Remittances Investment Framework hosted by the Ministry of Finance and Development Planning with technical support from the United Nations Economic Commission for Africa (UNECA) in Maseru on Tuesday.
Director of Private Sector and Finance Affairs in the Ministry of Finance and Development Planning, Ms. Maseiso Lekholoane, said remittances remain a major part of Lesotho’s economy.
She explained that in 2024 Basotho abroad sent home about US$475 million, which is around 21 percent of the country’s Gross Domestic Product.
According to her, this shows how important the diaspora is to the economy, and it also shows why Lesotho needs to create ways to channel more of that money into productive investments.
She mentioned that the proposed framework aims to build a transparent, digital and simplified environment that will make it easier for the diaspora to invest back home.
She also indicated that the goal is to position the diaspora as a key source of development finance, not just household support.
Speaking at the workshop, United Nations Resident Coordinator in Lesotho, Ms. Taija Kontinen-Sharp, said migration is a structural part of Lesotho’s economy, with more than 99 percent of Basotho migrants moving to South Africa.
She noted that this trend affects young and educated Basotho the most, and that 46 percent of adults have considered leaving the country to look for work.
Ms. Kontinen-Sharp said Lesotho is one of the most remittance-dependent countries in the world, so it is important to put credible systems in place that can turn migration and diaspora contributions into lasting development.
She stressed that the focus should shift from only increasing remittance inflows to creating an environment where members of the diaspora feel confident to invest in Lesotho.
“The opportunity before Lesotho is to move from migration potential to concrete and actionable policies,” she said.
She also emphasised the need for continued cooperation between the Ministry of Finance and Development Planning, the Ministry of Foreign Affairs and international partners to strengthen the link between migration and development.
UNECA Economic Affairs Officer and Subregional Officer for Southern Africa, Mr. Mzwanele Mfunwa, said the framework will look at regulatory, institutional and financial ways to use diaspora contributions for national development.
He said this includes stronger investment protection, setting up diaspora directorates, formalising remittance channels and introducing new financial tools such as diaspora bonds.
Mr. Mfunwa added that the process will also produce a reform roadmap with clear pillars, stakeholder roles, specific actions and measurable indicators.
He said migration and diaspora contributions should be built into both national and local development plans, supported by better data collection and practical tools.
Meanwhile the UNECA Southern Africa Office, which supports 11 member states including Lesotho, is providing technical assistance to strengthen the framework.
The Lesotho National Development Corporation is also expected to be involved in engaging the diaspora, especially around trade and investment. International financial institutions could further support this by providing credit enhancement and risk-mitigation options.
The workshop therefore marks a shift in thinking, from viewing the Basotho diaspora mainly as a source of support for households, to recognizing it as a potential source of capital, skills, technology and entrepreneurship that can directly help transform Lesotho’s economy.
Ends/TS/tl
