Movements·lesotho_matekane_coalition_fiscal_reform_2022_present

Lesotho Matekane coalition fiscal reform 2022-present

LSO·2022 – present·Revolution for Prosperity-led coalition

Leaders: Sam Matekane (Prime Minister, 2022-) · Retselisitsoe Matlanyane (Minister of Finance and Development Planning)

Doctrine — stated goals and content

Lesotho's post-2022 coalition agenda is framed around restoring fiscal credibility, reducing dependence on volatile SACU revenue, keeping the Highlands water-transfer programme moving, and improving private-sector access to finance. The movement is coded narrowly around budget, water infrastructure, and financial-inclusion measures where official and IMF documentation provides a clear policy basis.

Policy-content fingerprint — how the framework codes this movement on its axes

spending level

fiscal.spending_level

General government spending as share of GDP, excluding transfers already captured under fiscal.transfer_expansion to avoid double-counting.

mixed · moderate

The Highlands project expands infrastructure investment while the FY2024/25 budget aimed to save SACU windfalls and restrain spending.

↑

sectoral subsidy

fiscal.sectoral_subsidy

Targeted industrial and sectoral subsidies (renewable energy, chip manufacturing, agriculture, green hydrogen, etc).

increased · moderate

expanded sectoral subsidies

Water-transfer infrastructure concentrates state resources in a strategic export and hydropower-linked sector.

↑

financial deregulation

regulatory.financial_deregulation

Financial-sector regulation — banking separation, capital requirements, cross-border activity rules, derivatives oversight.

increased · weak

tighter financial regulation

Financial-sector and inclusion strategies broaden access to formal finance and digital channels.

↑

rule of law

institutional.rule_of_law

Rule of law as institutional substrate — contract enforcement, judicial independence, equal treatment before the law. Upstream of most other axes.

increased · weak

stronger rule of law

Budget discipline and financial-sector strategies add formal fiscal and regulatory frameworks.

Policies enacted

· lso_highlands_water_project_phase_ii_2023
· lso_fy2024_25_sacu_fiscal_consolidation_budget
· lso_financial_inclusion_strategy_ii_2024

References

IMF, Kingdom of Lesotho 2025 Article IV Consultation.
Lesotho Highlands Development Authority, Phase II project materials.
Government of Lesotho financial-sector and financial-inclusion strategy materials.