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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.

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