InfraPITCH: Lesotho Highland Water Project–Phase II.

Executive Summary

Case Study 

Lesotho Highlands Water Project – Phase II

Project Overview

Victory Igweh and Testimony Olateju presented one of Africa’s most significant transboundary water infrastructure initiatives, the Lesotho Highlands Water Project (LHWP) Phase II.

This flagship project, developed jointly by the governments of Lesotho and South Africa under a 1986 treaty, is designed to augment water supply to South Africa’s industrial heartland, Gauteng, while simultaneously generating much-needed hydroelectric power for Lesotho.

 Phase II represents a critical expansion of the existing scheme, increasing the volume of water transferred and bolstering regional energy and water security.

The scale of the project is immense, making its financial structuring and risk allocation a primary focus. The South African government is responsible for the water component, which is financed through money raised on the markets by the Trans-Caledon Tunnel Authority (TCTA) with no direct government contribution.

The Lesotho government, in turn, covers the costs of the hydropower component. The presentation by Victory Igweh and their team would have highlighted this sophisticated financial structure, which is emblematic of the complex public-private partnerships needed for such mega-projects.

The project’s progression is a testament to the potential of regional cooperation in tackling shared challenges, though it is not without risk. Jurors’ questions likely probed the ambitious 2029 completion date, project phasing, and cost overruns, challenges which often plague such large-scale developments.

The project is a powerful example of how early-stage infrastructure can drive economic development and energy independence through bilateral collaboration.

Watch the InfraPITCH

Watch the video on Vimeo

Events at The African Catalyst

More about The African Catalyst