Lesotho moves to unlock diaspora investment potential through new practical remittances–investment framework

Maseru, Lesotho, 18 August 2026 (ECA) - The Government of the Kingdom of Lesotho, in partnership with the United Nations Economic Commission for Africa (ECA) and the United Nations system, has concluded a national workshop aimed at strengthening the country's capacity to leverage remittances, diaspora investment, skills and networks for national and sustainable development.

The Workshop on the Remittances-Investment National Framework, held in Maseru, brought together policymakers, financial institutions, private sector representatives, development partners and other stakeholders to review and discuss a proposed practical regulatory, institutional and financial framework, alongside a matrix of policy reforms, better leverage Diaspora Contribution to National and Sustainable Development in Lesotho and channel remittances into productive investment.

The workshop forms part of ECA's Programme on Strengthening the Migration-Development Nexus in Africa, which supports six countries to integrate migration and diaspora contributions into national development plans and strategies and to develop adequate framework and tools to unlock the Potential of Remittances and Diaspora Contributions for Sustainable Development in Africa.

Opening the workshop, Ms. Maseeiso Lekholoane, Director of Private Sector and Financial Affairs, Ministry of Finance and Development Planning, called for a shift from viewing the Basotho diaspora primarily as a source of household remittances to recognising them as strategic partners in development.

She highlighted the diaspora's potential contribution through financial capital, skills, knowledge, entrepreneurship, technology and international networks, identifying agriculture and agro-processing, manufacturing, tourism, renewable energy and infrastructure as potential areas for productive investment. She stressed that the framework should be practical, coordinated and nationally owned, building on existing initiatives and partnerships.

Mr. Khaled Hussein, Chief of Section, ECA Subregional Office for North Africa, highlighted the scale of the opportunity facing Lesotho. Remittances represent approximately 21 per cent of the country's GDP, while diaspora savings retained abroad offer further potential for development financing. Based on an estimated 2:1 ratio between remittances sent and diaspora savings retained abroad, he noted that an additional resource pool equivalent to roughly 10.5 per cent of GDP could potentially be mobilised.

Mr. Hussein also cautioned that remittance is a resilient financial source for Lesotho's economy, but dependence carries risks, emphasising the need to strengthen data, financial regulation and the business environment, while creating mechanisms to channel a greater share of diaspora savings into long-term investments such as renewable energy and tourism.

Addressing participants, Ms. Taija Kontinen-Sharp, United Nations Resident Coordinator in Lesotho, emphasised that migration represents more than the movement of people. It also involves the movement of skills, knowledge and human capital.

She called for a framework that harnesses diaspora expertise, technology, networks and market connections to support investment, job creation, economic diversification and sustainable development. She further underscored the importance of aligning Lesotho's diaspora policy, Remittance Strategy, proposed diaspora bond, migration and development policy and labour migration framework as complementary pillars of a coherent national approach.

Presenting the workshop objectives, Mr. Mzwanele Griffiths Mfunwa, Economic Affairs Officer, ECA Subregional Office for Southern Africa, highlighted the need for stronger national policy alignment, investment protection, compliance and transparent access to investment opportunities. He also stressed the importance of measurable indicators to track policy reforms and practical tools to integrate migration and diaspora considerations into national and sub-national development planning and policies.

The workshop placed Lesotho's experience within the broader African financing landscape. ECA noted that Africa received approximately US$124 billion in remittances in 2025, alongside an estimated US$53 billion in diaspora savings held abroad, while the continent faces an annual financing gap estimated at between US$400 billion and US$1.2 trillion.

Participants therefore examined how a greater share of remittances and diaspora savings could be directed beyond household consumption towards productive investment, enterprise development, job creation and long-term capital formation, while maintaining the important role remittances play in supporting household welfare.

The workshop concluded with a call for stronger national ownership, enhanced institutional capacity and inclusive diaspora engagement. Participants emphasised that coordinated action by government, the private sector, financial institutions, development partners and diaspora communities to implement the matrix of policy reforms will be essential to unlocking the full contribution of migration and diaspora resources to Lesotho's development.

Media Contact

Bryll Mulangala

Communications United Nations Economic Commission for Africa (ECA) Subregional Office for Southern Africa Email: [email protected]

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