[{"bbox": [96, 178, 1134, 445], "category": "Text", "text": "Natural resources, including renewables, exist in abundance in Lesotho and if used in a sustainable and equitable manner have the potential to transform the country's economy into one that is green, circular and resilient. Lesotho is endowed with a great potential for renewable energy generation but it currently imports the majority of its electricity. Lesotho supplies a third of water to the economic powerhouses of Gauteng (the region of Johannesburg and Pretoria) and yet less than a third of its population has access to safely managed drinking water. Improved access to water and electricity is expected to unlock commercial opportunities and introduce trade possibilities between Lesotho, South Africa and the wider region, resulting in jobs and socio-economic development. At the same time, in order to overcome political instability and establish a conducive environment for this vision to be realised, Lesotho has embarked on national reforms in seven areas: constitutional, parliamentary, security sector, public sector, judiciary, economic and media reforms."}, {"bbox": [96, 474, 1134, 661], "category": "Text", "text": "Against this backdrop, the MIP 2021-2027 for Lesotho focusses on two priority areas: (1) green and resilient economy - contributing to the Green Deal Team Europe Initiative for Lesotho and (2) good governance, peaceful and just society. Under the first priority area, EU cooperation aims to facilitate Lesotho's move towards a circular economy that becomes increasingly sustainable and self-sufficient with regard to energy generation and consumption and that provides affordable access for all to energy, water and sanitation. Under the second priority area, EU cooperation will support the process of national reforms undertaken by Lesotho, and efforts to improve service delivery to the citizenry, particularly social protection."}, {"bbox": [96, 686, 1134, 873], "category": "Text", "text": "The MIP is fully aligned with Lesotho's second five-year NSDP II. The NSDP II consists of four key priority areas: (1) Enhancing Inclusive and Sustainable Economic Growth and Private Sector-led Job Creation, (2) Strengthening Human Capital, (3) Building Enabling Infrastructure, and (4) Strengthening National Governance and Accountability Systems. In terms of policy alignment, the policies set out in the Plan are consistent with the United Nation's 2030 Sustainable Development Goals (SDGs) and the African Union Agenda 2063. Furthermore, the MIP is aligned with EU external political priorities and puts focus on key challenges related to environment and climate change, such as the European Green Deal and the Global Gateways⁷."}, {"bbox": [96, 898, 1134, 1139], "category": "Text", "text": "With regard to the energy sector, access to modern and sustainable energy is a prerequisite for economic growth and poverty alleviation. Lesotho has one of the lowest electricity access rates in the Southern African region, especially when compared to its closest neighbours - South Africa and Eswatini. In 2017, only 34% of the population had access to electricity via the national grid. As a result of an intensive electrification plan, the access rate has almost tripled over the ten years from 2007 to 2017, from 14% to 34%⁸. Access to grid-supplied electricity is much lower in rural areas of Lesotho - with a 20% access rate in rural areas as compared to 70% in urban areas. The country's electricity generation capacity is 72 Megawatts (MW) from the Muela hydropower plant managed by Lesotho Highland Development Authority while the country's peak power demand is 160 MW. The deficit is covered with imports from South Africa and Mozambique."}, {"bbox": [96, 1163, 1134, 1377], "category": "Text", "text": "Nonetheless, Lesotho's potential for generating clean, renewable energy is widely recognised. Solar, wind and hydropower are options to replace the unsustainable use of biomass and fossil fuels and reduce greenhouse gases emissions. An Electrification Master Plan has been developed with EU support and is now a reference document for the Ministry of Energy. State finance for infrastructure expansion is limited and private sector investments, foreign or domestic, remain slow and restrained. This is largely due to perceived and real political risks on the one hand, but also red tape and non-conducive regulations on the other. Infrastructure expansion for power generation (solar, wind or hydro) and distribution (mix of on-grid and off-grid solutions) through a conducive business environment will be the key for achieving universal access to energy, with positive environmental impact."}, {"bbox": [85, 1417, 341, 1449], "category": "Section-header", "text": "## 2.2 Problem Analysis"}, {"bbox": [96, 1463, 318, 1491], "category": "Text", "text": "Short problem analysis:"}, {"bbox": [85, 1527, 478, 1551], "category": "Footnote", "text": "⁷ COM/2019/640 final and JOIN(2021)30 final"}, {"bbox": [85, 1551, 1142, 1602], "category": "Footnote", "text": "⁸ UNDP, UNCDF, 2020, Lesotho: Energy and the Poor, Unpacking the investment case for clean energy, https://www.undp.org/sites/g/files/zskgke326/files/publications/UNDP-UNCDF-Lesotho-Energy-and-the-Poor.pdf"}, {"bbox": [1038, 1681, 1143, 1705], "category": "Page-footer", "text": "Page 5 of 25"}]