MILLENNIUM CHALLENGE ACCOUNT – LESOTHO I
The Kingdom of Lesotho and the Government of the United States through its Development Agency, Millennium Challenge Corporation (MCC) have signed a USD 300 million-grant funding known as Lesotho Health and Horticulture Compact to advance development of Lesotho by investing in three main projects namely Health Systems Strengthening (HSS), Market Driven Irrigated Horticulture (MDIH), and Business Environment and Technical Assistance (BETA).
The primary objectives of the USD $118.6 million MDIH project include increasing rural incomes, promoting inclusive agricultural growth, and establish sustainable models for irrigation, water resource management, and land management. In support of these objectives, MDIH will implement activities that bi capacity and provide financial support to smallholder farmers as they transition from subsistence to commercial horticulture production. Specifically, the proj supports programming to secure land rights and participation of existing landholders, including women and youth, in the irrigation schemes.
The project aims to achieve this by building irrigation infrastructure covering up to 1,580 hectares in the identified four (4) irrigation scheme sites. Three (3) of them are in the of Leribe district; Likhakeng (100 ha), Manka (600 ha), and Tsoili-Tsoili (760 ha). The fourth site will be in the southern district of Mohale’s Hoek; Phamong (120 ha). These sites will be made available for production through support for the partnering of smallholders and anchor farmers in commercial agriculture.
Each horticultural irrigation scheme offers room for multiple investors, ensuring that opportunities are abundant, land tenure is secure, comprehensive irrigation infrastructure is tailored to investor needs, and grants are made available for planting materials and infrastructure. In addition, they aim to enhance the quality and value of agricultural value chains in Lesotho, with a particular focus on empowering small-scale enterprises to become reliable suppliers of products, inputs, and integrated cold chain (ICC) services.
Various partnership options between investors and smallholder farmers will be facilitated by the Project to maximize mutual benefits. Extensive consultations have been held with smallholder farmers and local communities since 2019. Investors will be encouraged to collaborate with the Project to provide technical support to smallholder farmers, and local service providers and preference will be given to investors planning to collaborate with local farmers on the scheme and provide technology transfer where necessary. This includes input supply, modern technology, and post-harvest infrastructure to meet market standards. Community engagement is at the heart of this Project.
The MDIH irrigation schemes are in line with Lesotho’s second National Strategic Development Plan 2019-2028 (NSDP |I), which identifies agriculture as a catalyst for economic growth through increased production, processing, and marketing in the horticultural sector.
MCA Lesotho II is looking for commercial anchor farmer investors (AFIs) who can collaborate with the Project and smallholder farmers to elevate horticultural practices and meet market demands. AFis with financial resources, aggregation capabilities, and market connections are encouraged to step forward.
This is the first Call for Investors, and there are advantages to being among the first investors to participate. Investors are welcome to explore the possibilities offered by the MDIH Project and are encouraged to submit their responses to this CFI by 30 November 2023 and further information or details pertaining to the Project can be obtained from the following officials:
Sekoala Molapo at [email protected] or 22317017;
Palesa Motleleng at [email protected] or 22317017; and
Charlotte Moeketsi at [email protected] or 22317017.
Do not miss this opportunity to invest in Lesotho’s horticultural irrigation schemes and join the efforts in creating a sustainable and inclusive future for agriculture in Lesotho