World Bank Group Helps Lesotho to Expand Energy Access and Economic Opportunity for Nearly 147,000 People

MASERU, May 27, 2026 - The World Bank Group is helping Lesotho bring reliable, affordable electricity to nearly 147,000 residents and businesses, reduce energy poverty, and create the conditions for stronger household incomes and private sector growth through a $50 million credit from the International Development Association (IDA).

The Accelerating Sustainable and Clean Energy Access Transformation in Lesotho (ASCENT - Lesotho) project will deploy an integrated approach to electrification focusing on expanding the grid network in peri-urban, rural and highland areas and last mile electrification deploying standalone solar systems to reach underserved and remote populations.

ASCENT-Lesotho is part of the broader regional ASCENT program, which aims to accelerate electricity access across Eastern and Southern Africa in line with Mission 300, a joint World Bank Group-African Development Bank initiative to connect 300 million people to electricity by 2030.

Despite significant progress in recent decades, the country continues to face challenges. Household electricity access has grown from 7% in 2004 to 59% in 2024, however at the current pace of roughly 4,000 new connections per year, the country may not meet its universal access goal by 2030, which requires more than 45,000 new connections annually. The gap is sharpest in rural areas, where only 43% of households have electricity compared to 84% in urban areas, and where many families still rely on kerosene, candles, and biomass for lighting and cooking.

In response, ASCENT will expand grid connections across selected urban, peri-urban, and rural areas, with a focus on communities that have some of the lowest electrification rates in the country. For households that are unlikely to be reached by the grid in the near term, ASCENT will pilot innovative off-grid and distributed renewable energy solutions to ensure no community is left behind. The project will also deliver targeted technical assistance to support utility reform, strengthen national electrification planning, and promote the adoption of clean cooking which addresses both the structural and household-level barriers that have slowed progress toward universal energy access.

Off-grid solar is critical to achieving universal energy access in Lesotho, providing a least-cost electrification option for households beyond the reach of the grid such as mountainous regions where grid extension is costly and technically complex.

"Expanding access to reliable and sustainable electricity is critical to reducing energy poverty, improving household productivity, supporting micro, small, and medium enterprises growth, and strengthening essential social services. Expanding energy access contributes to the country's broader development agenda," says Retselisitsoe Matlanyane, Minister of Finance and Development Planning for Lesotho.

Lesotho's National Energy Compact under Mission 300 serves as the government's roadmap to establish the regulatory, institutional, and financial conditions needed for energy access to be delivered and sustained over time. These commitments are being operationalized through ASCENT-Lesotho, which directly supports implementation of the National Energy Compact.

"Lesotho possesses abundant renewable energy resources such as solar, wind, and hydropower, which have the potential to surpass Lesotho's energy needs. Harnessing these resources into transformational energy sources will ensure that every Mosotho has access to power," says Dinara Djoldosheva, World Bank Country Representative for Lesotho. "This is a catalyst for job creation and private sector growth. The human cost of inadequate energy access falls disproportionately on women and girls and expanding electricity access will be an impactful intervention to reduce the energy burden in many households across Lesotho."

Beyond its direct investments, ASCENT Lesotho includes critical technical assistance to strengthen sector institutions, improve energy security, close the gender gap in energy access, and build market confidence laying the foundations for a sustainable and inclusive energy sector.

Across its operations, the World Bank Group supports countries in creating more and better jobs by building the foundations for growth, strengthening private sector development, and mobilizing investment that expands economic opportunity.

Contacts: World Bank Media Relations: [email protected]