The Millennium Challenge Account (MCA II) delegation has convened a meeting with Heads of Departments to announce the official closure plan of the horticulture project site at Phamong.

Speaking during the meeting, MCA Resettlement Specialist under the Environmental and Social Performance Division, Ms. Maleshoane Ntsika, explained that the United States Government Foreign Aid Assessment Review process, which began in January 2024 and concluded in April 2025, resulted in the decision to cut foreign aid to Lesotho. She noted that this development led to the termination of contracts for some healthcare workers.

Ntsika stated that the compact comprised four poverty alleviation projects aimed at promoting economic growth. These included Health Systems Strengthening, Business Environment and Technical Assistance, Market Driven Irrigated Horticulture (MDIH), and the American Catalyst Facility Development Project. The projects were earmarked for implementation in Mohale’s Hoek and Leribe districts.

She further indicated that the government has expressed interest in continuing with the project and is currently seeking funding, as the initiative is costly. The proposed budget has been submitted to the Ministry of Finance and Development Planning. However, she emphasised that it remains unclear how the government intends to proceed with implementation.

Meanwhile, District Administrator Ms. Moleboheng Lebele expressed concern over the closure of the compact, noting that the project would have contributed significantly to job creation. She expressed hope that the government would find alternative means to support its continuation.

In an interview with the news department, Government Spokesperson Mr. Boitelo Rabele acknowledged the importance of the project. He explained that due to budgetary constraints, it would not be feasible to implement the entire project at once, as would have been possible under the original funding arrangement.

Rabele said government plans to implement the project in phases, adding that further clarity would be provided during the 2026/2027 budget speech scheduled for next week.

The Kingdom of Lesotho, through the Ministry of Foreign Affairs and International Relations, and the United States of America, acting through the Millennium Challenge Corporation (MCC), signed the Lesotho Health and Horticulture Compact II in May 2022. The agreement provided a grant of up to US$300 million.

The Market Driven Irrigated Horticulture (MDIH) project sites were located in the Tsoili-Tsoili, Manka and Likhakeng community councils, as well as at Phamong in Mohale’s Hoek.