Only 7% of Lesotho households are connected to the national grid

The move is part of an push to connect more homes in the tiny mountain kingdom to the national grid.

"We decided to privatise because the government does not have the capacity to finance household connections," an official told Reuters news agency.

This will be among Lesotho's largest privatisations, which include the sale of an airline and telecom firms.

Fixed price

According to figures furnished to Reuters, the LEC (Lesotho Electricity Company) was established in 1969.

But after 30 years, it has managed to wire just 7% of the country's 400,000-odd households into the national electricity network.

Lesotho, landlocked and entirely surrounded by South Africa, has a population of about 2 million.

The government's privatisation department has placed advertisements in South African newspapers inviting parties to place bids for the majority stake.

According to the advertisements, the sale will be at a set price, rather than one determined by auction.