A loan agreement of US $ 10 million was signed in Maseru on 30 July 2007, between the Arab Bank for Economic Development in Africa (BADEA) and the Kingdom of Lesotho to finance the construction of Metolong Dam for Drinking Water. The loan, which is to be reimbursed over a period of 30 years, includes a grace period of 10 years and has an annual interest rate of 1%.

The Metolong Dam Project lies approximately 35 km east of the capital Maseru and aims to provide an additional 71,000m3 of water daily for both domestic and industrial consumption in the capital city, as well as neighbouring cities and villages. It also aims at reducing poverty and creating employment thanks to the construction of a dam on the river Fothiatsana, which will allow its impoundment and regulation as well as the use of some of the river's water

Moreover, BADEA signed in Dakar on 03 August 2007, a loan agreement totaling US $ 6.5 million dollars to the Republic of Senegal to help finance an Integrated Agricultural Development project in Ndiawara Region (Basin of the Senegal River). The loan is to be reimbursed over a period of 30 years and includes a grace period of 10 years, with an annual interest rate of 1%.

By supplying agricultural inputs and materials, the project aims at developing the agricultural areas, diversifying agricultural product to improve the agricultural yield and supporting the participation of women in agricultural activities. It also aims at developing parallel activities by providing micro credit loans, improving living conditions, reducing the suffering of the populations by supplying infrastructures for drinking water, creating jobs and increasing the income of farmers in order to curb migration and reduce poverty.

The two loans were granted on highly concessional terms, in accordance with BADEA's Fifth Five-Year-Plan (2005-2009).

The two agreements were signed, on behalf of BADEA by H.E. Mr. Ahmed Abdallah Al-Akeil, Chairman of the Board of Directors, and on behalf on the beneficiary countries by H.E. the Minister of Finance for the Kingdom of Lesotho and H.E. the State Minister, Minister of Economics and Finance for the Republic of Senegal.

The total BADEA’s commitments for the 43 African beneficiary countries during the period March 1975 to June 2007, stands at US$ 3315.822 million, financing 421 projects and 396 technical assistance operations and including the funds allocated through Heavily Indebted Poor Countries Initiative (HIPC) and 14 special operations in the context of the Emergency Aid Programme from which several African countries affected by drought and desertification benefit.