A few of the kingdom’s major assets

Lesotho’s assets include royalties paid to its government by the Trans-caledon Tunnel Authority (TCTA), as well as payments for power from Eskom.

TCTA is South Africa’s state-owned entity charged with financing and implementing bulk raw water infrastructure projects.

It is an agency of the Department of Water and Sanitation. The entity assists the government in its pursuit of water security for South Africa and in realising its constitutional obligation of ensuring universal access to this essential resource.

Lesotho, a mountainous enclave within SA, earns much of its foreign exchange by selling water and power to SA from the Lesotho Highlands Water Project. Water royalties amount to $70-million a year (R1-billion), FSG has stated.

The project was instituted as a bi-national project spanning the borders of SA and Lesotho in accordance with a treaty signed in 1986.

The project diverts water from the Senqu River System in Lesotho to SA’S economic hub, the water-stressed Gauteng region.

In Lesotho, the authority implements the programme, while in South Africa, TCTA is responsible.