SADC greenlights US $1.87M for Lesotho–Botswana Water Transfer Project

The Southern African Development Community (SADC) has approved US $1.83M to advance preparations for the proposed Lesotho–Botswana Water Transfer Project, a cross-border initiative aimed at improving long-term water security across parts of Southern Africa.

The funding, provided through SADC’s Project Preparation and Development Facility (PPDF), will support two key studies: a full Environmental and Social Impact Assessment (ESIA) and a detailed feasibility study. These assessments will determine the technical practicality, environmental implications, financial structure and institutional framework of the planned 700-kilometre water transfer system before construction decisions are made.

The project proposes transporting water from Lesotho’s highland catchments through South Africa to Botswana. Central to the plan is a dam to be constructed on the Makhaleng River, which feeds into the Senqu River system. The dam would regulate and store water earmarked for transfer.

Current projections indicate that around 150 million cubic metres of water per year could be delivered to Botswana, while additional volumes would be retained to meet needs within Lesotho and South Africa along the pipeline corridor. Beyond supplying drinking water, the infrastructure is expected to support irrigation, industrial consumption and electricity generation. Plans also include a 45MW small hydropower facility at the dam site, adding an energy dimension to the multi-purpose development.

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The PPDF operates under the SADC–Germany cooperation programme and is financed by the German government. It is jointly implemented by KfW and the Development Bank of Southern Africa (DBSA). The mechanism is designed to help prepare large-scale regional infrastructure projects by funding early-stage technical and environmental work that can attract future investment.

The feasibility study will examine potential funding models, legal arrangements and governance structures, while the ESIA will assess environmental risks, social impacts and mitigation measures. Together, these studies aim to clarify the project’s overall viability and reduce uncertainty for prospective financiers. Southern Africa is increasingly vulnerable to water shortages due to population growth, economic expansion and climate variability. Botswana has faced mounting pressure on its water systems, particularly during prolonged dry spells.

By tapping into Lesotho’s high-altitude water resources, the proposed scheme seeks to improve regional drought resilience and stabilise supply. Officials expect the project to support agricultural productivity, industrial activity and broader economic development, while contributing to energy security through hydropower generation.

The concept of transferring water from Lesotho to Botswana has been under discussion for more than a decade, following agreements between Lesotho, Botswana and South Africa to explore shared water development options. Technical consultations have also taken place under regional water cooperation frameworks.

The approval of US $1.83M signals a shift from preliminary discussions to structured project preparation. Although the amount represents early-stage funding, it is considered a crucial step toward mobilising the significantly larger capital required to build the dam, pipeline and associated facilities.

Full implementation will depend on securing substantial additional financing from development banks, donor partners and possibly private investors. Effective transboundary coordination will also be essential, including agreements on cost allocation, benefit-sharing, environmental protection and community safeguards. If realised, the Lesotho–Botswana Water Transfer Project could serve as a model for regional cooperation, strengthening water, food and energy security while deepening collaboration among the participating countries.

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