Lesotho

 

Lesotho

1. Country / Territory Brief

A Member of the WTO since May 1995, Lesotho is a landlocked country surrounded by the Republic of South Africa. The

country has experienced economic and political changes over the last two decades.

The changes have involved shifts from dependence on subsistence agriculture and remittances, by the diaspora in South Africa,

toward intensified mining, water exports, manufacturing exports, and services. The main exports from the country include

manufactures (mainly textiles, clothing, footwear and other consumer goods); Agricultural products (food and raw materials);

and, mining products. Lesotho’s main trade partners are mainly South Africa, United States (AGOA), Canada, the European

Union and Madagascar.

In terms of the business environment, Lesotho ranked 136th out of 189 economies in the World Bank’s 2014 Doing Business

Survey. The Government’s long-term development goals are reflected in its “Vision 2020”, issued in 2002; and, the National

Strategic Development Plan (NSDP) approved in March 2012.

ITC’s on-going work in Lesotho aims to develop national capacity in the production and marketing of high-value Fresh Fruit and

Vegetables (FFVs) and developing of value chains in the agriculture sector. This is important to the country as part of the

SADC, SACU and Lesotho will benefit from the tripartite agreement covering SADC, COMESA and EAC. This new development

will require serious negotiations on Trade Facilitation issues as well as attracting inward FDI for critical transformation.

2. People and Economy

2.1 People

Total population

(growth rates per annum) 1,972,199 in 2012 with growth rates of 1.0% p.a during 2008-2012

Population density

(people per sq. km of

land area)

65 in 2012

Female population 51.0% in 2012

Population below 15

years of age 36.8% in 2008 ; 38.5% in 2012

Urban population 25.4% in 2012

Population living below

$1.25 a day at purchasing

power parity (PPP)

NA

Ranking in the Human

Development Index (HDI) 158 out of 186 in 2012

Evolution of the Human Development Index (HDI)

Source: United Nations Development Programme Human Development Indicators

Note: The Human Development Index measures the overall development of a nation and ranges from 0 (low level of

development) to 1 (highest level of development). The United Nations Development Programme (http://hdr.undp.org)

provides a detailed explanation. ITC Regional group refers to ITC definition

Health Life expectancy at birth (years) (48); Mortality rate, under-5 (per thousand live births) (99.6) in

2012

Education Education index - expected and mean years of schooling (rank) ( 129 out of 191) in 2012

Income level GNI per capita in PPP terms (constant 2005 international $) (1,911) in 2012

Inequality Inequality-adjusted HDI (rank) (111 out of 191)in 2012

Poverty Multidimensional Poverty Index (rank)( 41 out of 191) in 2012

Gender Gender inequality index (rank) (36 out of 191) in 2012

Sustainability NA

2.2 Economy

Added value per sector

(current US$ and % of GDP)

Sector added value

2004 2008 2012

US $ %GDP US $ %GDP US $ %GDP

Agriculture 109 9.6 120 8 161 7.4

Industry 367 32.5 559 37.3 754 34.6

Manufacturing 248 22 285 18.9 268 12.3

Services 654 57.9 822 54.7 1,265 58

Source: World Bank World Development Indicators (WDI)

Note: Added value is US$ terms are expressed in million, GDP US$, and

"6,976 to be read 6'976"

Evolution of GDP (constant 2005 US$)

Source: World Bank World Development Indicators (WDI)

Note: ITC calculations based on the World Bank WDI

Evolution of GDP per capita (constant 2005 US$)

Source: World Bank World Development Indicators (WDI)

Note: ITC calculations based on the World Bank WDI

Aid Dependency (Official Development Assistance/Gross National Income)

Source: World Bank World Development Indicators (WDI)

Note: ITC calculations based on the World Bank WDI. Regional group

refers to ITC definition

Remittances as a Share of GDP

Remittances as a Share of GDP

2004 2008 2012

Remittance ($ millions) 627 576 NA

Remittance (% GDP) 5081.9 3531.5 NA

Source: World Bank World Development Indicators (WDI)

Note: ITC calculations based on World Bank WDI, IMF BOP statistics,

and "6,976 to be read 6'976"

3. Trade Performance

3.1 General Trade Performance

3.1.1 Evolution of Trade Ratio to GDP - Goods

3.1.2 Evolution of Trade Ratio to GDP - Services

3.1.3 Evolution of Total Trade

3.1.4 Trade Map

3.1.5 Export and Import by Leading Destination - Export

3.1.6 Export and Import by Leading Destination - Import

3.1.7 Evolution of Exports and Imports by Destination - Export

3.1.8 Evolution of Exports and Imports by Destination - Import

3.1.9 Total Export Growth

Source: ITC, calculations based on ITC’s Trade Competitiveness Map data.

Note:Graph shows decomposition of the country’s export growth in value terms by diversification pattern over the indicated

period.

3.1.10 Marginal Export Growth

Source: ITC, calculations based on ITC’s Trade Competitiveness Map data.

Note:Graph shows decomposition of the country’s export growth in value by structural driving effects over the indicated period.

Values are in US$ thousands.

3.1.11 Composition of Trade in Services - Export

3.1.12 Composition of Trade in Services - Import

3.1.13 Evolution of FDI

3.2 Sector Trade Performance

3.2.1 Sectoral Diversification in Products - Export

3.2.2 Sectoral Diversification in Products - Import

3.2.3 Sectoral Diversification in Destinations - Export

3.2.4 Sectoral Diversification in Destinations - Import

3.2.5 Sectors by World Demand - Export

3.2.6 Sectors by World Demand - Import

3.2.7 Trade Performance Index

4. Trade Strategy and Policy

4.1 Trade and Development Strategies

Year Strategy name Sector

2011

Southern Africa ADB Regional Integration Strategy Paper

The document provides an overview of the current political, economic and social...

2009

UNDAF Lesotho 2008-2012

The UNDAF is alligned with the MDGs and the objectives set in...

2008

Interim National Development Plan

The Interim National Development Framework provides a bridge between the Poverty

Reduction...

2007

Industrialisation Master Plan

The Industrialisation Master Plan provides a framework for industrial policy in

Lesotho...

Textile Industry, Garment

Industry

2004

Poverty Reduction Strategy Paper - Lesotho 2005-2007

The Poverty Reduction Strategy outlines a mid-term development plan in allignement

with...

2003

Integration into the World Trading Environment

The DTIS provides an overview of Lesotho's economic performance over the last...

2002

Lesotho National Vision 2020

The Lesotho National Vision aims at transforming Lesotho by 2020 into a...

4.2 Domestic and Foreign Market Access

Overview: Trade Policy and Business Environment

INDICATOR, UNITS RANK/132 SCORE

Domestic Market Access The pillar assesses the level and complexity of a country’s tariff protection

as a result of its trade policy. This component includes the effective trade-weighted average tariff

applied by a country, the share of goods imported duty free and the complexity of the tariff regime,

measured through tariff variance, the prevalence of tariff peaks and specific tariffs, and the number

of distinct tariffs.

102 4.13

Foreign Market Access The pillar assesses tariff barriers faced by a country’s exporters in destination

markets. It includes the average tariffs faced by the country as well as the margin of preference in

destination markets negotiated through bilateral or regional trade agreements or granted in the form

of trade preferences.

23 3.71

Tariff rate (%) This indicator is calculated as a trade-weighted average of all the applied tariff rates,

including preferential rates that a country applies to the rest of the world. The weights are the trade

patterns of the importing country’s reference group (2012 data). An applied tariff is a customs duty

that is levied on imports of merchandise goods.

76 6.13

Complexity of tariffs , index 1-7 (best) This indicator is calculated as the average of the following

indicators: Tariff dispersion, Specific tariffs and Number of distinct tariffs. See description of each

individual indicator for more details. Prior to averaging, values for each indicator were transformed to

a 1–7 score, using the min-max method.

90 4.92

Tariffs dispersion (standard deviation) This indicator reflects differences in tariffs across product

categories in a country’s tariff structure. The variance is calculated across all the tariffs on imported

merchandise goods, at the 6-digit level of the Harmonized Schedule.

101 11.58

Tariffs peaks (%) This indicator is the ratio of the number of tariff lines exceeding three times the

average domestic tariff (across all products) to the MFN (most-favoured nation) tariff schedule. The

tariff schedule is equal to the total number of tariff lines for each country. These tariffs are revised on

a yearly basis.

95 9.72

Specific tariffs (%) This indicator is the ratio of the number of Harmonized System (HS) tariff lines,

with at least one specific tariff, to the total number of HS tariff lines. A specific tariff is a tariff rate

charged on fixed amount per quantity (as opposed to ad valorem)

90 3.76

Number of distinct tariffs This indicator reflects the number of distinct tariff rates applied by a country

to its imports across all sectors.

90 309.00

Share of duty-free imports (%) Share of trade, excluding petroleum, that is imported free of tariff

duties, taking into account MFN tariffs and preferential agreements. Tariff data is from 2013 or most

recent year available and imports data is from 2012

100 32.07

Tariffs faced (%) This indicator is calculated as the trade-weighted average of the applied tariff rates,

including preferential rates that the rest of the world applies to each country. The weights are the

trade patterns of the importing country’s reference group (2012 data). A tariff is a customs duty that is

levied by the destination country on imports of merchandise goods

69 5.42

Index of margin of preference in destination markets, 0-100 (best) This indicator measures the

percentage by which particular imports from one country are subject to lower tariffs than the MFN

rate. It is calculated as the average of two components: 1) the trade-weighted average difference

between the MFN tariff and the most advantageous preferential duty (advantage score), and 2) the

ratio of the advantage score to the trade-weighted average MFN tariff level. This allows capturing

both the absolute and the relative margin of preference.

5 67.22

Source : World Economic Forum, Global Enabling Trade Report 2014

4.3 Trade Facilitation

Logistics Performance Index (LPI): Country Comparison

Source: World Bank, Logistics Performance Index (LPI)

Logistics Performance Index – Evolution

Source: World Bank, Logistics Performance Index (LPI)

4.4 Business and Regulatory Environment

Multilateral Trade Instruments

Abstract

The Trade Treaties Map tool is a web-based system on multilateral

trade treaties and instruments designed to assist trade support

institutions (TSIs) and policymakers in optimizing their country's legal

framework on international trade

Instrument

ratified : 77 / 266 instruments

Ratification

rate : 29%

Weighted

score : 39.3/100

Ratification

Rate Rank

Weighted

Score

Rank

In World : 143 / 193 140 /

193

In Region : Sub-

Saharan

Africa

27/ 47 26/ 47

In

Development

level :

Least

developed

country

20/ 48 18/ 48

Graph

Presents a visual illustration breaking down a country’s ratification level

according to various categories and compares it to the world average.

Instruments ratified Click here for a full list and more details about these

multi-lateral trade instruments

4.5 Infrastructure

Indicator Value Rank/148

Quality of overall infrastructure How would you assess general infrastructure (e.g.,

transport, telephony, and energy) in your country? [1 = extremely underdeveloped—

among the worst in the world; 7 = extensive and efficient—among the best in the

world] | 2012–13 weighted average.

2.79 117

Quality of roads How would you assess roads in your country? (1 = extremely

underdeveloped; 7 = extensive and efficient by international standards) | 2010, 2011. 2.87 106

Quality of railroad infrastructure How would you assess the railroad system in your

country? (1 = extremely underdeveloped; 7 = extensive and efficient by international

standards) | 2010, 2011.

n/a n/a

Quality of port infrastructure How would you assess port facilities in your country? (1 =

extremely underdeveloped; 7 = well-developed and efficient by international

standards). For landlocked countries, this measures the ease of access to port

facilities and inland waterways | 2010, 2011.

2.89 118

Quality of air transport infrastructure How would you assess passenger air transport

infrastructure in your country? (1 = extremely underdeveloped; 7 = extensive and

efficient by international standards) | 2010, 2011.

2.30 135

Individuals using Internet (%) Internet users are people with access to the worldwide

network. 75.30 112

Mobile telephone subscriptions/100 pop According to the World Bank, mobile cellular

telephone subscriptions are subscriptions to a public mobile telephone service using

cellular technology, which provides access to switched telephone technology.

Postpaid and prepaid subscriptions are included. This can also include analogue and

digital cellular systems but should not include non-cellular systems. Subscribers to

fixed wireless, public mobile data services, or radio paging services are not included.

4.59 124

Fixed broadband Internet subscriptions/100 pop: The International Telecommunication

Union considers broadband to be any dedicated connection to the Internet of 256

kilobits per second or faster, in both directions. Broadband subscribers refers to the

sum of DSL, cable modem and other broadband (for example, fiber optic, fixed

wireless, apartment LANs, satellite connections) subscribers.

0.07 123

Source: World Economic Forum, Global Enabling Trade Report 2014

5. ITC and the Country/Territory

5.1 ITC Projects

5.1.1 Current projects

Lesotho - Horticulture productivity and trade development

5.1.2 Recent projects

No Recent Projects Found!

5.2 Events

5.2.1 Upcoming events

No data

5.2.2 Recent events

No data

5.3 ITC Contacts

Silencer MAPURANGA

Senior Trade Promotion Officer

+41 22 730 0327

mapuranga@intracen.org

Ruben PHOOLCHUND

Chief, Office for Africa

+41 22 730 0508

phoolchund@intracen.org

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6. Trade Information Sources and

Contacts

6.1 Trade Information Sources

This section provides a list of country specific print and online publications on trade-related topics, including both ITC and

external sources.

6.1.1 ITC publications

Business Guide to Trade Remedies in South Africa and the Southern African Customs Union: Anti-Dumping,

Countervailing and Safeguards Legislation, Practices and Procedures

Guide to trade remedy procedures (anti-dumping, countervailing and safeguard) aimed at exporters from developing countries

and transition economies, with particular reference to trade remedy legislation and practices of South Africa...

Lesotho : Managing the Trade Support Network

Paper presented at ITC Regional Executive Forum : 'Small States in Transition : From Vulnerability to Competitiveness' , Port of

Spain, Trinidad and Tobago, 18-21 January 2004 - outlines the...

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Lesotho - Supply Survey on Textiles and Clothing

Market Opportunities in South Africa as a Result of the SADC Trade Protocol - Subregional Trade Expansion in

Southern Africa

Document was prepared for providing statistical up-date of trading complementarities between the South African Customs

Union (SACU), and members of the Southern African Development Community (SADC), and to capture potential...

Doing Business in the Southern African Customs Union (SACU) : A Brief Analysis of South African Legislation

Paper presented at ITC World Export Development Forum : 'Bringing down the Barriers - Charting a Dynamic Export

Development Agenda', Montreux, Switzerland, 8-11 October, 2007 - focuses on The Southern...

Read more

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Multilateral Trading System and the New Political Economy for Textiles and Clothing: An Introduction for Least

Developed Countries

Study focuses on the WTO Agreement on Textiles and Clothing, ATC and its implications on Least Developed Countries.

Discusses issues affecting trade in textiles and clothing, technical and marketing considerations...

Zambia : Quality Management for Services : An Exploratory Outline

Paper presented at ITC Executive Forum : 'Export of Services : Hype or High Potential? Implications for Strategy-Makers' ,

Montreux, Switzerland, 5-8 October, 2005 - explains how to go about...

6.1.2 Selected printed information sources

2004 The Services Sector in Southern Africa

2007 - Draper, Peter EU-Africa Trade Relations: The Political Economy of Economic Partnership Agreements

2006 - Grant C Southern Africa and the European Union: the TDCA and SADC EPA

2006 - Cadot, Olivier The Origin of Goods : Rules of Origin in Regional Trade Agreements

2003 Global Competitiveness and Regional Market Integration

2006 - Kyambalesa H; Houngnikpo M C Economic Integration and Development in Africa

2006 - Sandrey R Trade Liberalisation : What Exactly does it Mean for Lesotho?

2007 - Fundira T The SACU-EFTA Agreement : Current Trading Relationship and Implications

2009 - Erasmus G Safeguards and Trade Remedies in the SADC and ESA Economic Partnership Agreements

2012 Policy Priorities for International Trade and Jobs

2007 - Sandrey R; Jensen G Revisiting the South African-China Trading Relationship

2013 Africa Competitiveness Report

2006 - Sandrey R Trade Creation and Trade Diversion Resulting from SACU Trading Agreements

2005 - Manduna C The Challenges Facing Least Developed Countries in the GATS Negotiations : A Case Study of Lesotho

2003 - De la Rocha M The Cotonou Agreement and its Implications for the Regional Trade Agenda in Eastern and Southern

Africa

2010 - Kiratu S; Roy S Beyond Barriers : The Gender Implications of Trade Liberalization in Southern Africa

2010 - Bursvik E Supporting Regional Integration in East and Southern Africa : Review of Select Issues

2010 Regional Agricultural Trade for Economic Development and Food Security in Sub-Saharan Africa : Conceptual

Background and Fields of Action for Development Cooperation

2006 - Meyn, Mareike Regional Integration and EPA configurations in Southern and Eastern Africa : What are the feasible

alternatives?

2010 - Carr M; Williams M, eds. Trading Stories: Experiences with Gender and Trade

2007 Trade Information Brief: Aquaculture

2007 EPA Negotiations in Southern Africa : Some Issues of Concern

2011 - Sandrey R Cape to Cairo : An Assessment of the Tripartite Free Trade Area

2004 Action plan of priority actions for integrating regional supply chains to increase competitive trade in the Textile, Garment

and Handicraft Sectors

2006 EPA Negotiations, SADC Configuration : Executive Brief

2008 Perfil de la Industria Paraguaya de Software

2009 Characteristics of Malaysia's Animal Feed Market

2014 Perspectives on Global Development 2014: Boosting Productivity to Meet the Middle-Income Challenge

2010 Mobilizing Aid for Trade for SPS-Related Technical Cooperation in the Greater Mekong Sub-Region

2010 Leather Garments in the EU

2006 Overview of the Current State of Organic Agriculture in Kenya, Uganda and the Republic of Tanzania and the

Opportunities for Regional Harmonization

2007 Export Diversification and Value Addition for Human Development : Addressing the Impact of the Agreement on Textiles

and Clothing Expiration on Cambodia

2006 - Ruffing, Lorraine Deepening Development Through Business Linkages

2012 OECD Economic Surveys: Chile

2005 - Magder, D Egypt after the Multi-Fiber Arrangement: Global Apparel and Textile Supply Chains as a Route for Industrial

Upgrading

2006 Bangladesh: Furniture Export Market Sector Brief

2012 Cotton Contamination Surveys, 2001 - 2003 - 2005 - 2007 - 2009 - 2011

2006 - Boutou, Olivier Management de la sécurité des aliments : De l'HACCP à l'ISO 22000

2006 Trading up : Economic Perspectives on Development Issues in the Multilateral Trading System

2004 Perfiles de mercado para productos bolivianos en los mercados de Argentina, Brasil, Chile, Colombia, Ecuador, México,

Paraguay, Perú, Uruguay y Venezuela

2010 Vietnam: Oilseeds and Products

2007 Organic Farming in the Czech Republic: 2007 Yearbook

2007 - Gibbon P; Bolwig S Economics of Certified of Organic Farming in Tropical Africa: A Preliminary Assessment

2006 The Relationship of Third-party Certification (TPC) to Sanitary / Phytosanitary (SPS) Measures and the International

Agri-Food Trade; Case Study: Guatemala- with Emphasis on Food Safety

2007 - Ismail F Mainstreaming Development in the WTO : Developing Countries in the Doha Round

2009 Market Report. Focus on the Nordic Market - Fresh Fruit and Vegetables

2001 - Karlöf, Bengt Benchlearning : Good Examples as a Lever for Development

2003 - Martin W; Pangestu M, eds. Options for Global Trade Reform : A View from the Asia-Pacific

2010 L'industrie sri lankaise du textile-habillement

2000 - Hauber, Christiane Formation, Prevention & Determination of Cr (VI) in Leather

2013 Economic and Business Review for Central and South-Eastern Europe

2006 - Gebreselassie Fanta, Elias Does Value Addition at Oilseed Production and/or Spreading the Gain from Export of

Oilseed Products Increase the Income of Primary Producers?

2010 - Pannier J Recueil de jurisprudence douanière (1990-2010)

2002 - Beswick R; Dunn DJ Plastics in Packaging : A RAPRA Market Report

2006 Doubling Aid : Making the Big Push Work

2006 Determining 'likeness' under the GATS : Squaring the Circle?

2014 Africa Investor

2004 Guidelines on Microfinance : Making Financial Markets Work for the Poor

2007 Libéralisation des échanges de services et développement du tourisme

2007 Offre de Emballage en Afrique de l'ouest

2008 An Overview of the Mobile Phone Banking Industry

2007 Sixth World Congress on Seafood Safety, Quality and Trade

2007 - Wood, Aileen A Comprehensive Library Staff Training Program in the Information Age

2005 - [s.n] The Science of Shrinkage Control : An Interactive Guide to Improved Shrinkage Performances

2011 Libéralisation du transport aérien en Afrique

2012 - Wollenberg E; , eds. Climate Change Mitigation and Agriculture

2009 - Novogratz J The Blue Sweater: Bridging the Gap Between Rich and Poor in an Interconnected World

2011 - Cadot O Impact Evaluation of Trade Interventions : Paving the Way

2011 - Banerjee A V; Duflo E Poor Economics : A Radical Rethinking of the Way to Fight Global Poverty

2014 Edible Nuts in Turkey

2011 Perfil de Frutas Tropicales Frescas y Procesadas en Chile

2011 Germany: Product Brief Fresh Fruits

2010 - Reilly D, Reilly A, Lewis J Towards an Australian Date Industry: An overview of the Australian domestic and

international date industries

2011 Feasibility Study for a Cotton Spinning Mill in 11 [Eleven] Sub-Saharan African Countries

2011 Foro Público de la OMC

2011 - Cooksey B The Investment and Business Environment for Export Horticulture in Northern Tanzania

2011 Potential Supply Chains in the Textiles and Clothing Sector in South Asia : An Exploratory Study

2011 - Macrory P; Stephenson S Making Trade in Services Supportive of Development in Commonwealth Small and Lowincome

Countries

2012 - Fold, Niels; Whitfield, Lindsay Developing a Palm Oil Sector: the Experiences of Malaysia and Ghana Compared

2011 Opportunities for Trade in Services of Canada

2011 - Bartels L; Goodison P EU Proposal to End Preferences of 18 African and Pacific States : An Assessment

2011 India and Latin America and the Caribbean : Opportunities and Challenges in Trade and Investment Relations

2009 Information Management Resource Kit: Web 2.0 and Social Media for Development

2013 Human Resource Management

2011 - Goswami A G; , eds. Exporting Services : A Developing Country Perspective

2011 Guides de bonnes pratiques produits phytosanitaires pour la culture des piments (Capsicum Frutescens, Capsicum

Annuum, Capsicum Chinense) et poivrons (Capsicum Annuum)

2008 Guides de bonnes pratiques phytosanitaires pour la mangue (Mangifera indica) issue de la production biologique

2010 Financial Services in Agriculture Value Chain Report : A Study of Five Kenyan Sub-Sectors namely Potato, Dairy,

Coffee, Extensive Livestock and Domestic Horticulture

2014 Human Relations

2008 Romania: Organic Agriculture

2011 A Profile of the South African Mango Market Value Chain

2008 Poland - Organic Products: Certification and Subsidies to Domestic Production

2007 - Greene, W Emergence of India's Pharmaceutical Industry and Implications for the U.S. Generic Drug Market

2007 - Liapis, Peter S. Preferential Trade Agreements : How Much Do They Benefit Developing Economies?

2007 Environment and Regional Trade Agreements

2006 Bulgaria: Organic Products

2006 Lithuania: Organic Products - Organic Farming in Lithuania

2008 Marché de la maroquinerie à Hong Kong

2007 - Warnholz, Jean-Louis Poverty Reduction for Profit? : A Critical Examination of Business Opportunities at the Bottom of

the Pyramid

2007 OECD Economic Surveys : Ukraine Economic Assessment

6.1.3 Selected online information sources

SADC Trade Development Programme

Southern African Enterprise Network (SAEN)

Non-Tariff Barriers Reporting, Monitoring and Eliminating Mechanism

Lesotho Textile Exporters Association (LTEA)

TradeMark Southern Africa (TMSA)

Lesotho Bureau of Statistics

Lesotho National Development Corporation (LNDC)

Southern Africa Resource Watch (SARW)

6.2 Trade Contactser Fax Number Email Website

Lesotho National Development

Corporation

Kingsway

Street Maseru

+26622312012

+26622310038

info@lndc.org.ls

http:www.lndc.org.ls