Economy of Lesotho 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
History of Lesotho head of the army, the Prime Minister fled the country alleging a coup was taking place. Kamoli denied that any coup had occurred. History of Lesotho The history of people living in the area now known as Lesotho () goes back as many as 40,000 years. The present Lesotho (then called Basutoland) emerged as a single polity under paramount chief Moshoeshoe I in 1822. Under Moshoeshoe I, Basutoland joined other tribes in their struggle against the Lifaqane associated with the reign of Shaka Zulu from 1818 to 1828. Subsequent evolution of the state was shaped by contact with the British