Page "Economy of Lesotho" Paragraph 1

Water and diamonds are Lesotho's only significant natural resources.

Water is being exploited through the 30-year, multi-billion dollar Lesotho Highlands Water Project ( LHWP ), which was initiated in 1986.

The LHWP is designed to capture, store, and transfer water from the Orange River system and send it to South Africa's Free State and greater Johannesburg area, which features a large concentration of South African industry, population and agriculture.

At the completion of the project, Lesotho should be almost completely self-sufficient in the production of electricity and also gain income from the sale of electricity to South Africa.

The World Bank, African Development Bank, European Investment Bank, and many other bilateral donors are financing the project.

Diamonds are produced in Leteng, Mothae, Liqhobong and Kao mines.

The sector suffered a set back in 2008 as the result of the world recession but rebounded in 2010 and 2011.

It is a major contributor to the exports of Lesotho.