MASERU, May 1 (AGCNewsNet) — An R6-billion development initiative in Lesotho funded by the United States is facing collapse as Washington moves to shut down the Millennium Challenge Corporation (MCC) programme, which was expected to benefit over 2.5 million people.

Launched in 2023, the Lesotho Health and Horticulture Compact aimed to transform the country’s primary healthcare system, improve food production, and boost small businesses—particularly those owned by women and youth. The MCC had committed $300 million (about 6 billion Maloti), with Lesotho expected to contribute $22.3 million.

The compact included three flagship projects:

l A $75.4-million health initiative focused on improving maternal and child care, modernizing data systems, and supporting HIV/AIDS treatment;

l A $118.6-million food security project to expand irrigation and increase rural incomes; and

l A $62-million business development programme.

Despite its ambitious scope, the project is being quietly shut down, with staff, contractors, and partner communities left in limbo. Internal correspondence obtained by GroundUp reveals that contractors have been told to prepare for closure, while implementation partners like Canadian consulting firm Cowater International have begun returning equipment and shutting down offices.

Limpho Maema, acting CEO of the Lesotho Millennium Challenge Account, confirmed that discussions were ongoing between MCC and the Lesotho government. However, she did not deny reports of closure, stating only that “a definitive decision will be communicated.”

In Mohale’s Hoek, one of the areas targeted for agricultural expansion, local land committees say they’ve received no formal updates since January. “People trusted us to negotiate access to their fields,” said committee member ‘Maamohelang Tomo. “Now the silence is heartbreaking. They ask for answers, but we have none.”

Meanwhile, Lesotho’s Foreign Minister Lejone Mpotjoane referred all inquiries to the Finance Ministry. Finance Minister Retselisitsoe Matlanyane, currently abroad, declined to comment due to scheduling constraints.

The US Embassy in Maseru has also remained silent on the shutdown. Previous queries had been redirected to Washington.

As per the compact agreement, any unspent funds must be returned to MCC—raising concerns that already vulnerable communities may see no benefit at all.

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Source: Eye Witness News