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 1855. The country set up diplomatic channels and acquired guns for use against the encroaching Europeans and the Korana people. Territorial conflicts with both British and Boer settlers arose periodically, including Moshoeshoe's notable victory over the Boers in the Free State–Basotho War, but the final war in 1867 with an appeal to Queen Victoria, who agreed to make Basutoland a British suzerainty. In 1869, the British signed a treaty at Aliwal with the Boers that defined the boundaries of Basutoland and later Lesotho, which by ceding the western territories effectively reduced Moshoeshoe's kingdom to half its previous size. The extent