JOHANNESBURG - Gem Diamonds Ltd said it has recovered a 198-carat white diamond from its flagship mine in Lesotho that should fetch “an exceptional price” when sold this year.

The pledge was made by a Basotho delegation on a visit to Namibia, which included Lesotho Prime Minister Dr Thomas Thabane, who is the leader of the All Basotho Convention; the Deputy Prime Minister Mothetjoa Metsing, Lesotho Congress for Democracy leader; and the Minister of Home Affairs Joang Molapo who represented the leader of the Basotho National Party.

The two-day visit to Namibia was a follow-up to President Hifikepunye Pohamba’s visit to Lesotho last month.

Word doing the rounds was that the visit was to solicit advice from President Pohamba, in his capacity as the Chairperson of the SADC Organ on Politics, Defence and Security Cooperation, on how to peacefully co-exist in the tripartite political matrimony.

The World Bank approved anadditional $15.5 million for the second phase of Lesotho’s WaterSector Improvement Project that will improve supply to about30,000 people.

The project will support the Metolong Dam and Water SupplyProgram, the preparation of the hydro-electric power componentof phase 2 of the Lesotho Highlands Water Project and expandwater services in the lowlands of the country, the Washington-based institution said in an e-mailed statement.

More than 40 percent of Lesotho’s population, especiallypoorer households, does not have adequate access to water andsanitation services, World bank Country Director for Lesotho,Asad Alam says in the statement. “Roughly 75 percent of thepopulation live in rural areas where water service is scarce.”

The World Bank's Board of Executive Directors approved today additional financing in the amount of US$15.435 million for the Water Sector Improvement Project, Phase 2.

This project will further support the long-term sustainability of the Metolong Dam and Water Supply Program, advance preparation of the hydropower component under Phase 2 of the Lesotho Highlands Water Project (LHWP2), and assist the Government of Lesotho in preparing a comprehensive investment program for the expansion of water service in the Lowlands of Lesotho. Some 30,000 people, of whom 18,000 are women, will benefit from the delivery of water services by 2016.

Water is one of Lesotho's most important natural resource, contributing eight percent to Lesotho's overall gross domestic product (GDP). It is central to the country's long-term growth prospects. Periodic water supply breakdowns in recent years, due both to drought conditions and infrastructure failures, have affected production in this sector.

Since 2010, the economy has been performing well with growth of real Gross Domestic Product (GDP) averaging over 5 percent a year and inflation held to single-digit levels. International reserves have recovered to close to five months of import coverage after dipping to 3? months of imports in 2012 in the wake of the balance of payments and fiscal crisis caused by the sharp drop in revenues from the Southern African Customs Union (SACU) in fiscal years 2010/11 and 2011/12.

The recovery from the crisis was achieved with the help of a sustained fiscal adjustment effort supported by the IMF with a three-year arrangement under the Extended Credit Facility (ECF), which was successfully concluded in September 2013.

The economic outlook for Lesotho is positive with strong economic growth and low inflation. Economic activity is expected to be supported by large public investment projects, including the second phase of the Lesotho Highland Water Project. The authorities are also taking steps to strengthen the role of the private sector. However, there are risks, most notably from the high volatility of SACU revenues.

Despite the recent strong growth, unemployment remains high and poverty is widespread, while some social indicators on primary and secondary education and HIV/AIDS highlight the future challenges.