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 the Lower Karoo which hosts the coal seams does not outcrop in Lesotho. The country has quarrying of Quaternary clay deposits, Drakensberg Group fine-grained basalts and sandstones in the Elliot, Molteno and Clarens Formations. 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