Maseru, Lesotho - 8 June 2026: The Government of Lesotho, with support from the United Nations Development Programme (UNDP Lesotho and UNDP Africa Sustainable Finance Hub), convened a validation workshop to review and validate the feasibility study for a Sovereign Sustainable Diaspora Bond, marking an important milestone in the country's efforts to mobilize and diversify innovative financing for sustainable development.
The workshop brought together representatives from the Ministry of Finance and Development Planning, the Central Bank of Lesotho, the Ministry of Foreign Affairs and International Relations, Lesotho National Development Corporation, other public institutions, development partners, financial sector stakeholders (including commercial banks, insurance companies, and asset managers), and technical experts to discuss the feasibility study's findings and chart a pathway toward implementation.
Building on an earlier pre-feasibility analysis, this comprehensive feasibility study further assessed and refined the potential for Lesotho to mobilize capital from both institutional and diaspora investors through a sovereign sustainability bond aligned with national development priorities and international sustainability standards. The proposed bond instrument would channel financing toward eligible green and social investment projects that support the country's National Strategic Development Plan II (NSDP II) and Sustainable Development Goals (SDGs).
The workshop featured presentations and discussions on the proposed bond structure, sustainable project pipeline, sustainability of a bond framework, regulatory landscape, macroeconomic and fiscal sustainability, investor capacity and appetite, and implementation mechanisms for participation of institutional and diaspora investors. Stakeholders agreed that the sovereign sustainable diaspora bond initiative would be an important step toward diversifying Lesotho's development finance sources, deepening domestic capital market development, enhancing impact-oriented public financial management, and leveraging the country's strong diaspora connections to support national development objectives.
A key outcome of the validation workshop was broad stakeholder consensus and support for continuing preparations toward a sustainable bond programme while strengthening governance and accountability arrangements, project preparation, sustainable bond framework development and external review, capacity building, investor engagement, and diaspora participation mechanism establishment.
Lesotho holds high diaspora capital potential from Basotho living abroad, particularly in South Africa. The proposed sustainable diaspora bond seeks to complement existing development financial flows by providing diaspora communities and institutional investors with an opportunity to contribute directly to the country's sustainable development through transparent and impact-oriented investments.
This initiative forms part of UNDP's broader support to the Government of Lesotho under its Integrated National Financing Framework (INFF), which aims to mobilize, leverage and align public and private financing with national development priorities and the SDGs.
Moving forward, the Government, together with UNDP and other partners, will refine and implement the next steps required to advance the sustainable diaspora bond programme, based on the feedback received during the validation workshop.
Mr. Matsabisa Thamae, Director of Financial Markets, Central Bank of Lesotho (CBL):
“Diaspora bond offers opportunity for another potential massive funding, beyond just remittances. We reaffirm CBL’s commitment to financial market development and to collaborating with anybody who contributes to the development of capital markets.”
Ms. Lineo Palime, Director of Diaspora Affairs, Ministry of Foreign Affairs and International Relations:
“This initiative reflects the Government’s commitment to advancing sustainable development and strengthening the ties between Lesotho and its diaspora community. It provides a valuable platform for Basotho living abroad to contribute meaningfully to the country’s socio–economic transformation while fostering a shared sense of national ownership.”
“The Sovereign Sustainable Diaspora Bond represents an innovative approach to development finance by creating an opportunity for Basotho living abroad to contribute directly to national development through a structured and transparent investment instrument,” said Mr. Limomane Peshoane, Deputy Resident Representative OIC, UNDP.
This bond initiative would position Lesotho among a growing number of countries exploring innovative financing instruments that combine sustainable finance principles with diaspora and institutional capital to support medium to long-term national development outcomes.
For further information, please contact:
Motulu Molapo
Development Finance Officer
UNDP Lesotho Country Office
motulu.molapo@undp.org
Ankun Liu
SDG Finance and South-South Cooperation Specialist
UNDP Africa Sustainable Finance Hub
ankun.liu@undp.org
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