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Lesotho continues to import electricity from its neighbours. Its current generating capacity at Muela (72MW) does not meet the country's needs. However, during the period under review, four mini-hydro plants were developed in the country: at Mantsonyane (2MW), at Semonkong (180kW), at Tlokoeng (670kW) and Tsoelike (400kW).

The LEC (Lesotho Electricity Corporation) and the LHDA (Lesotho Highlands Development Authority) dominate the electricity supply industry in Lesotho. The LEC is the only transmitter, distributor and supplier of electricity in Lesotho, and the LHDA is the main power generator through its Muela Hydro Power (MHP) Station at Katse Dam. At a rated capacity of 72 MW, this station sells all the energy it produces to the LEC, but can also export small amounts to South Africa. In 2014, the average electricity selling price to LEC stood at M 0.11/kWh and the MHP Station exported less than 1% of the energy to South Africa at an average price of M 0.21/kWh.

The energy produced by the MHP Station is complemented by two mini-hydro plants (Semonkong and Mantsonyane). To fill the energy deficit, which ranged between 41% and 51% during the period 2008-2013, power was imported from Mozambique (EDM) and South Africa (ESKOM) (Table 4.4). In 2013-2014, LEC bought 515.12 GWh of energy from the MHP Station and imported 285 GWh from Mozambique and South Africa.

Table 4.4 Demand and supply of hydropower, 2008-13
Maximum demand (MW) Installed capacity (MW) Imported capacity (MW)
2008 122.5 72 50.5
2009 133.4 72 61.4
2010 138 72 66
2011 141.7 72 69.7
2012 147.6 72 75.6
2013 143 72 71

Given its vast water resources, Lesotho has developed together with South Africa the Lesotho Highlands Water Project (LHWP) with two main objectives: (a) to increase its electricity production and (b) to export/transfer water to South Africa to raise its revenues from water royalties and electricity sales. The project consists of four phases, the first phase was completed in 2004 and the second phase was launched in March 2014. The last phase is expected to be finalized by 2020. In 2011, Lesotho received about R 615 million in royalties for water sales under the LHWP. This project is considered to be one of the largest water transfer schemes in the world. It is expected that by 2020, five dams and 200 kilometres of tunnels will have been constructed between the two countries.

The water and electricity sectors in Lesotho are mainly governed by the Water Act 2008 which regulates the management, protection, conservation and use of water resources. In addition to this legal instrument, since 2009 Lesotho has developed a number of regulations and rules regarding for instance licence applications (2012) , licence fees (2009 and 2013) , electricity prices (2009) and the resolution of disputes to improve transparency and predictability in these sectors.

Other entities with some responsibilities in the water sector are the Commissioner of Water (CoW), Department of Rural Water Supply (DRWS) and the Department of Water Affairs (DWA). The DWA is responsible for water resource management, and the CoW acts as the custodian of raw water resources. The DRWS' main responsibility is to ensure the provision of water supply in rural areas.

During the period 2008-15, Lesotho did not register any significant changes in its tourism legislation or institutions. The main legislation governing the sector is the Accommodation, Catering and Tourism Enterprises Act 1997 and its Regulations, and the Tourism Act 2002 (as amended), which establishes the Lesotho Tourism Development Corporation. These acts are complemented by other legal instruments that regulate for instance the conservation of monuments and natural parks, the operations of casinos, and liquor trading (Table 4.11). (...)

Table 4.11 Main legal instruments in the tourism sector
Legislation Date of publication in the Gazette
Environment Act 2001 ..
Historical Monuments, Relics, Fauna and Flora Act 1967 13 December 1967
(...)

Tourism development is the responsibility of the Ministry of Tourism, Environment and Culture (MTEC) and the Lesotho Tourism Development Corporation (LTDC). The MTEC is in charge, inter alia, of developing and implementing tourism policies and legislation and of issuing tourism licences and environment impact assessment (EIA) clearances (Section 2.3.2). (...)