A missed connection
As Lesotho opts out of Afreximbank’s AAM2026, risking economic lifeline amid trade pressures
MOSA MAOENG
MASERU — Just months after a high-powered delegation from the African Export-Import Bank (Afreximbank) wrapped up a strategic mission to Maseru aimed at re-engaging stakeholders and unlocking the kingdom’s significant economic potential, the government of Lesotho has confirmed it will not participate in the institution’s flagship 33rd Annual Meetings (AAM2026) scheduled for June in Egypt.
The decision, which has raised eyebrows among economic analysts and private-sector observers, signals a potentially costly retreat from a critical platform that could offer the very financial architecture Lesotho desperately needs to navigate mounting external pressures.
The confirmation came from the Ministry of Finance, which told Public Eye that Lesotho will not be taking part in the high-level gathering set for El Alamein, Egypt, from June 21 to 24. The decision stands in stark contrast to the fanfare and optimism that accompanied Afreximbank’s recent mission to the country – a visit explicitly designed to pivot Lesotho away from traditional aid dependency and toward bankable, self-sustaining economic development.
For a nation currently grappling with the dual shocks of newly introduced United States tariffs and the lingering uncertainties surrounding the African Growth and Opportunity Act (AGOA) trade pact, the absence from AAM2026 is more than a diplomatic footnote. It represents a missed opportunity to secure tailored financing, forge strategic partnerships, and position itself within a continental shift toward economic sovereignty – a theme that sits at the very heart of this year’s meetings.
Afreximbank’s recent mission to Lesotho was anything but routine. The delegation, led by senior officials including Regional Director for Southern Africa Humphrey Nwugo, engaged in bilateral discussions with government ministries and private-sector stakeholders.
The objective was clear – identify bankable opportunities in key sectors such as textiles, water, agriculture, and mining, and deploy the Bank’s suite of financial and non-financial instruments to transform Lesotho into a competitive hub for intra-African trade.
In an exclusive interview following the visit, Nwugo underscored the timeliness of the engagement.
“Lesotho has been a shareholder of Afreximbank since 2009 and has a strong opportunity to unlock greater value from the Bank’s programs and facilities through expanded collaboration,” he said. He further noted that the country’s high-value natural resources – water, agricultural and grazing land, and minerals – could significantly benefit from Afreximbank’s renewed focus on beneficiation under the leadership of President Dr George Elombi.
That focus on beneficiation – the processing of raw materials into finished goods – is particularly critical for Lesotho. With the US recently imposing a 15 percent tariff on exports from the country, and AGOA’s long-term future still uncertain, Lesotho’s textile industry – its largest manufacturing employer – faces an existential threat.
The Afreximbank mission was meant to offer alternatives: diversifying export markets, strengthening regional value chains, and leveraging the African Continental Free Trade Area (AfCFTA) as a buffer against external shocks.
Yet, despite the fanfare of the visit, the government’s confirmation of non-participation in AAM2026 suggests a failure to convert strategic dialogue into tangible follow-through.
The 33rd Annual Meetings, themed “Intra-African Trade and Industrialisation: Pathway to Economic Sovereignty,” are not merely ceremonial gatherings. They are decision-making forums where project preparation deals are structured, investment agreements are signed, and continental priorities are set.
For a country like Lesotho-landlocked, least-developed, and heavily reliant on preferential trade access – the cost of absence is measured in missed capital, lost partnerships, and deferred industrial potential.
One of the most immediate opportunities Lesotho will miss is access to Afreximbank’s project preparation facilities. At the 32nd Annual Meetings held in Abuja, Nigeria, in June 2025, the Bank unveiled a series of project preparation deals aimed at unlocking investment across Africa. These initiatives are designed to help countries de-risk infrastructure and industrial projects, making them attractive to private investors.
Lesotho, which struggles to move projects from conception to bankability, would have benefited immensely from such support – particularly in water infrastructure, agro-processing, and mining beneficiation.
AAM2026 will serve as a critical platform for operationalizing the AfCFTA, the continental free-trade area that Afreximbank has championed through instruments like the Pan-African Payment and Settlement System (PAPSS). Lesotho’s absence means losing the chance to engage directly with the architects of these systems, potentially delaying its integration into Africa’s emerging single market.
At a time when US tariffs are closing doors, the failure to aggressively pursue African market access represents a strategic misstep.
The Annual Meetings bring together heads of state, central bank governors, private-sector leaders, and institutional investors from across Africa and beyond. For smaller economies, these gatherings offer a rare opportunity to pitch projects directly to capital holders.
Lesotho’s non-participation means its private sector – already constrained by limited access to affordable finance – will miss out on deal-making opportunities that could have catalyzed growth in textiles, tourism, and renewable energy.
Beyond finance, AAM2026 offers a platform for policymakers to align on continental strategies. With the US tariff regime introducing new volatility, Lesotho’s absence means it will not participate in dialogues on trade defense mechanisms, currency stabilization, or industrial policy coordination – all of which are essential for a small, open economy vulnerable to external shocks.
Afreximbank’s mandate is uniquely suited to countries like Lesotho. Unlike traditional development finance institutions that often impose rigid conditionalities, Afreximbank operates as a pan-African multilateral financial institution focused on financing and promoting intra- and extra-African trade. Over the past three decades, it has deployed innovative structures to support the transformation of Africa’s trade architecture.
For low-income countries, the Bank offers a range of instruments that go beyond conventional lending. These include:
· Trade finance facilities that help local businesses access working capital and letters of credit, addressing one of the most persistent barriers to export growth.
· Special Economic Zone (SEZ) support, which is particularly relevant for Lesotho, given its existing textile SEZs that now face an uncertain future under US tariffs.
· SME development programs that provide both financing and technical assistance to small and medium enterprises – the backbone of Lesotho’s economy.
· Beneficiation and value-addition initiatives that help countries move up the value chain, reducing reliance on raw material exports and capturing more value locally.
Moreover, Afreximbank has been a stalwart supporter of the AfCFTA, launching PAPSS – a payment platform adopted by the African Union to facilitate cross-border trade in local currencies. For Lesotho, which conducts most of its trade in Dollars and Rands, adopting such a system could reduce transaction costs and insulate the economy from currency volatility.
The decision to skip AAM2026 is not occurring in a vacuum. It follows years of what some analysts describe as a hesitant engagement with continental financial institutions. Despite being a shareholder since 2009, Lesotho has yet to fully leverage Afreximbank’s programmes.
Historical commitments to strengthening the textile sector – including previous agreements to set up lines of credit and enhance institutional capacity for export financing – have seen only partial implementation.
At the 32nd Annual Meetings in Abuja, Nigeria, Lesotho engaged with the Bank to address its unique economic challenges under the theme “Building the Future on Decades of Resilience.” That engagement, however, appears to have yielded limited follow-through. The non-participation in AAM2026 raises questions about the government’s capacity to translate high-level diplomatic engagements into concrete economic outcomes.
The timing of Lesotho’s withdrawal could hardly be worse. The US tariff imposition has already sent shockwaves through the textile sector, which employs an estimated 40 000 Basotho, mostly women. AGOA uncertainty compounds the problem, leaving manufacturers hesitant to invest in new capacity.
Meanwhile, the country’s water and mining sectors – both flagged by Afreximbank as high-potential areas – remain underdeveloped due to limited investment and infrastructure gaps.
In this context, the Annual Meetings in Egypt represented a chance to present a unified, urgent case for support. Instead, Lesotho will be absent while neighboring countries and regional competitors seize the opportunity to pitch projects, secure financing, and build alliances.
The theme of AAM2026 – “Intra-African Trade and Industrialisation: Pathway to Economic Sovereignty” – speaks directly to the challenges facing Lesotho. Economic sovereignty is not achieved through isolation or passivity. It is built through active participation in the institutions and platforms that shape continental trade policy, finance, and industrial strategy.
By opting out of the Afreximbank Annual Meetings, Lesotho risks being left behind at a moment when the continent is accelerating toward integration. The finance ministry’s confirmation to Public Eye is a stark acknowledgment that, despite a promising visit from a high-powered delegation and despite the clear roadmap laid out for resilience, the country is not yet ready to seize the opportunities before it.
For a nation facing tariffs, trade uncertainty, and the urgent need for economic diversification, this is more than a missed conference. It is a missed chance to rewrite its economic future.
