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
Geology of Lesotho Geology of Lesotho The geology of Lesotho is built on ancient crystalline basement rock up to 3.6 billion years old, belonging to the Kaapvaal Craton, a section of stable primordial crust. Most of the rocks in the country are sedimentary or volcanic units, belonging to the Karoo Supergroup. The country is notable for large fossil deposits and intense erosion due to high rainfall and a rare case of southern African glaciation during the last ice age. Lesotho has extensive diamonds and other natural resources and has the highest concentration of kimberlite pipes anywhere in the world. Lesotho shares many commonalities