Minister may benefit from Lesotho’s R100-billion AI and hydropower deal
Public works minister Matjato Moteane is a shareholder in a local firm the government plans to invite to participate
Lesotho has inked the biggest foreign investment deal in its history, a $6.2 billion (around R100 billion) pact with US-based Convalt Energy. The project involves constructing a hydropower plant and an AI data center, projecting the country to become a regional energy exporter. However, concerns have arisen about potential conflicts of interest due to political influences, which may undermine the promise of citizens benefiting without bearing any costs.
The energy minister, Lejone Mpotjoane, confirmed the signing of a binding agreement, inviting local partners to join the project. One such firm is Sekhametsi Investment Consortium, of which Moteane, a co-founder and shareholder, is involved. Moteane's shareholding amounts to approximately R27 million at current values. Mpotjoane, when questioned about potential conflicts owing to Sekhametsi's political ties, was evasive and abruptly ended the conversation.
Moteane has declared his interest in Sekhametsi to the cabinet, but it remains unclear if he informed the corruption watchdog as required by law. Sekhametsi CEO Thuso Green stated that they have not yet been approached to collaborate. The deal's structure raises doubts about the government's selection process and project structuring.
Mpotjoane had previously stated that Lesotho would not invest any money in the project, leaving all risks to Convalt. The financing details are yet to be disclosed after the feasibility study.
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