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
Foreign relations of Lesotho resident diplomatic missions in Lesotho. Foreign relations of Lesotho are administered by the Ministry of Foreign Affairs and International Relations. Lesotho has historically maintained generally close ties with Ireland (Lesotho's largest bi-lateral aid donor), the United States, the United Kingdom, Germany, and other Western states. Although Lesotho decided in 1990 to break relations with the People's Republic of China (P.R.C.) and re-establish relations with the Republic of China (commonly known by its main island as "Taiwan"), it has since restored ties with the P.R.C. Lesotho, along with Brunei, Malaysia, Swaziland, and Tonga, is a Commonwealth member state with its own