Lesotho, with a population of 2.3 million is geographically surrounded by and is economically integrated with South Africa from which it receives approximately 80% of its imports for final consumption.

Lesotho is a landlocked country surrounded by the Republic of South Africa. The country experienced economic and political changes over last two decades. The changes involved shift from dependence on subsistence agriculture and remittances by Diaspora in South Africa, toward intensified mining, water exports, services and manufacturing exports.

The country enjoys ready access to the South African market. It is also a member of Southern African Customs Union and does not pay tariffs to export goods to other SACU members – Namibia, Botswana, South Africa and Swaziland.

The country is one of the top ten exporters to the United States under the African Growth and Opportunity Act and was one of the top exports of textiles and garments under AGOA. The United States of America is the largest recipient of Lesotho’s exports, mostly garments exported under AGOA.

The economy of the country is based on agriculture, livestock, manufacturing, mining, and it depends on inflows of workers’ remittances and receipts from South African Customs Union. 

Lesotho gets most of its foreign exchange via earnings from the SACU, water exports to South Africa and to a lesser extent, remittances from migrant labourers employed in South Africa. The economy is export driven.

The major economic sectors are manufacturing, mining, agriculture and services. As per the Lesotho Export Data, the major exports of the country are garments, water, diamonds, electricity, wool and mohair.

The country is ranked 122 among 190 in the 2020 Doing business report by the World Bank. The main export partners of Lesotho are South Africa, United States, Canada, the European Union and Madagascar. Exports in Lesotho decreased to 3350.16 LSL million in the first quarter of 2021 from 4298.70LSL million in the fourth quarter of 2020.

As per the Lesotho Import Data, the main imports of the country are food, fuel, machinery and building materials. The main import partners are South Korea, China, Taiwan, Hong Kong, United States and South Africa.

The country can assume a leadership position in the sub-region and in Africa as an investment destination of choice and shall be competitive in the multilateral trading system while maintaining highest consumer protection standards.

All these will be achieved through development of policies conducive to promotion of entrepreneurial skills and transfer of appropriate technology and application of state of the art technology and through smart partnership of private and public sectors.

Visit the Following Page for More Information-

What Is The Largest Export Import Data Bank? How To Use It For Business’s Benefit?