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
Lesotho Highlands Lesotho Highlands The Lesotho Highlands are formed by the Drakensberg and Maloti mountain ranges in the east and central parts of the country of Lesotho. Foothills form a divide between the lowlands and the highlands. Snow is common in the highlands in the winter. The Highlands are located to the southeast of the Highveld, encompassing the whole eastern part of Lesotho. The average annual rainfall is nearly 1,000 mm (40 inches) in some parts of the high ranges. Temperature is closely related to elevation in the Lesotho Highlands. In general, the mean July (winter) temperatures stay around 7 °C (45