Lesotho’s political crisis may complicate reform plans

Significance

The investigation and related revelations have ratcheted up pressure on the prime minister, triggering a political crisis in the small, strife-torn nation. This has worsened divisions in the ruling All Basotho Convention (ABC) and prompted Thabane to announce his planned resignation, albeit without setting a fixed date.

Impacts

• Worsening instability will be a further disincentive to investors wary of the country’s frequent institutional upheaval.
• Renewed turmoil may undermine efforts to deal with devastating drought, which has left one-quarter of the population facing severe hunger.
• Thabane may potentially look to collapse the current coalition and form a new party to contest in fresh polls.