Economic Impact

Phase II will stimulate economic growth in Lesotho and South Africa. Lesotho will benefit from the royalties it earns on the water supplied to South Africa and from the electricity generated within the country, while South Africa will benefit from the reliable water supply to its industrial hub, Gauteng. Basotho and South African consultants and contractors will participate in the implementation of Phase II, which also promises business and employment opportunities for communities in the implementation area. read more

Phase II will stimulate economic growth in Lesotho and in South Africa. Lesotho will benefit from the increase in royalties it earns on the water transferred to South Africa, while water delivery to South Africa will increase progressively from 780 million cubic metres per annum to more than 1 270 million cubic metres per annum.

The development of a facility to generate hydropower at the Kobong Pumped Storage Scheme is subject to further feasibility studies which will review the economic and institutional viability of the Kobong Scheme. At the same time, the further feasibility studies will explore alternative viable hydropower generation schemes that will increase the electricity generation capacity in Lesotho towards meeting the country’s electricity requirements.

Lesotho will also benefit from the new infrastructure developments, employment opportunities and a boost in economic growth, while South Africa will benefit from the guaranteed supply of high quality water employment opportunities and infrastructure developments in the towns along the border with Lesotho.

It is expected that during the implementation of Phase II, Basotho and South African nationals, both individuals and firms, will benefit from the technology transfer capacity building, employment and tender opportunities Phase II will offer. The number of people employed will increase during 2017 when the first construction contracts are awarded, building towards the main works starting in 2020. The numbers will peak at between 2 500 and 3 000 through 2021 to 2023, before reducing in late 2024 and 2025 as the project approaches completion.

Apart from the direct labour engaged on Phase II, significant opportunities will arise in sectors such as food/catering, health and tourism. There will also be increased demand for accommodation and agricultural products, and business opportunities in the aquaculture and water sports sectors will be boosted.

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