Supporting Agricultural Producer Groups and Agribusinesses in Lesotho
Overview
The Ministry of Agriculture, Food Security and Nutrition, through the Smallholder Agriculture Development Project II (SADP II), invites eligible commodity-based producer groups and agribusinesses to apply for funding under the Matching Grant Programme (MGP).
The programme is financed by the Global Agriculture and Food Security Programme (GAFSP) under the supervision of the International Fund for Agricultural Development (IFAD).
The grants aim to strengthen agricultural value chains, improve market access, and promote partnerships between smallholder producers and agribusinesses across Lesotho.
Grant Categories
1. Commodity-Based Producer Groups
- Grants of up to LSL 1,000,000.
- Priority will be given to groups supported by SADP II.
2. Agribusinesses
- Grants of up to LSL 1,500,000.
- Applicants must demonstrate a mutually beneficial partnership with SADP II-supported producer groups.
Who Can Apply?
Eligible applicants include:
- Registered commodity-based producer groups, associations, and cooperatives.
- Registered agribusiness firms operating in agriculture-related activities.
- Applicants operating in any of Lesotho’s ten districts.
Priority will be given to producer groups with:
- At least 50% women members.
- At least 40% youth participation.
- Women in leadership positions.
Note: Government employees are not eligible to apply.
Applicant Contribution
Successful applicants must contribute towards the investment cost as follows:
Producer Groups
- Minimum contribution of 20% of the grant amount requested.
Agribusinesses
- Minimum contribution of 30% of the grant amount requested.
The full contribution must be available before grant funds can be disbursed.
Eligible Investments
The grant may be used to fund:
- Harvesting and post-harvest equipment.
- Processing, storage, grading, and packaging facilities.
- Production equipment (including irrigation equipment, pumps, boreholes, and water tanks).
- Construction of storage, processing, and marketing infrastructure.
- Product development initiatives.
- Compliance with food safety and quality standards.
- Marketing and promotional activities.
What Will Not Be Funded?
The grant will not cover:
- Salaries and wages of applicants or group members.
- Any expenditure incurred before the date of signing the Grant Agreement or after the project closing date.
- Purchase, rental, or leasing of land and existing buildings.
- Land surveys.
- Expenses incurred before grant approval.
- Environmentally harmful activities.
- Any other costs not directly linked to approved capital investments.
Application Requirements
- Agribusiness applicants must clearly identify the producer groups they will work with.
- Applications should indicate the number of beneficiaries, disaggregated by sex, age, and other relevant categories.
- Land used for the proposed investment must be registered in the name of the applicant enterprise or group.
Submission of Applications
Closing Date: 26 August 2026
Applications may be submitted to the following SADP II officers:
| Contact Person | Area | Telephone |
|---|---|---|
| Ts’epang Monnye | Quthing & Qacha’s Nek | +266 5000 4725 |
| Liteboho Mohoshe | Mafeteng & Mohale’s Hoek | +266 6246 3280 |
| Mamosebetsi Befolo | Maseru & Thaba-Tseka | +266 5733 1568 |
| Mamolleloa Kao | Berea, Leribe, Butha-Buthe & Mokhotlong | +266 6812 9982 |