Subject (Course): Foreign Trade and Doing Business in Lesotho. Maseru:
- Introduction to the Kingdom of Lesotho (Southern Africa).
- Doing Business in Maseru.
- The Economy of the Kingdom of Lesotho
- Foreign Trade of Lesotho
- Market access
- Lesotho Customs and Excise Administration
- Business and Investment Opportunities in Lesotho
- Textile and garment sector
- Plastic products
- Leather and footwear
- Consumer electrical and electronic appliances
- Food processing and beverages
- Environmental projects
- Health sector
- Development of infrastructure
- Case Study:
- Lesotho Highlands Water Project
- Exporters’ guide to preferential trade arrangements applicable to Lesotho
- Lesotho Textile Industry
- Lesotho National Development Corporation
- History of the Basotho
Objectives of the subject “Foreign Trade and Doing Business in the Kingdom of Lesotho”:
- To analyse the economy and foreign trade of Lesotho
- To evaluate business opportunities in the Kingdom of Lesotho
- To explore Lesotho's trade relations with the student's country
- To know Lesotho's Free Trade Agreements (FTAs)
- To develop a business plan for the Lesotho's market
Sample of the subject - Foreign Trade and Doing Business in Lesotho:
Subject Description (Doing Business in Lesotho).
The Kingdom of Lesotho (Africa):
Lesotho: “The Switzerland of Africa.”
An African monarchy and landlocked country.
- Lesotho is a monarchy
- Capital: Maseru (393,000)
- Frontiers of Lesotho: South Africa
- Area: 30,355 square kilometres
- Population 1.9 millions of people
- The main languages: Sesotho, Zulu, and English
- The currency of Lesotho: Loti (plural Maloti)
The main religion in Lesotho: Christianity.
- Christians (90% of the population)
- Protestants (45%)
- Catholics (45%).
Lesotho belongs to the Southern African Economic Area of the African Civilisation.
Foreign trade of Lesotho:
Economic Profile of Lesotho.
- Free market economic system
- GDP growth rate: 6.5%. 4,4% average since 2003.
- Manufacturing: 10.3% of GDP
- Service industries: 53%
- Agriculture: 10.3%
- The inflation: 5,9%
- Unemployment: 25%
- The main resources: water.
- The main economic activities: farming and animal
husbandry, clothing, footwear, textiles, food processing, and construction
- Most dynamic sectors: real estate and service
Lesotho Textile Industry.
- The United States Growth and Opportunity Act (AGOA) is one of the reasons for the growth of the Lesotho textile industry;
today Lesotho is one of the top African exporters of garments to the US market (340 million dollars).
- Textile products exported to Southern African Customs Union (SACU)
members are exported without taxes.
- More than 40,000 people work in this sector, mainly woman.
- Global brands like Wal-Mart or Pepe Jeans has facilities in Lesotho.
- Lesotho Textile Exporters Association is the main employer association of the sector.
Lesotho Highlands Water Project is one of the biggest projects in Africa. In this bi-national project (Lesotho and
South Africa) works near 2,500 people.
Lesotho National Development Corporation is the institution of the Government of Lesotho that design and implements the industrial development policy.
International Trade of Lesotho:
- Imports: 89% of Lesotho's imports are from South
Africa, other import partners are the countries of the Southern African Development Community (SADC) region
- Exports. The main export markets of Lesotho (86%) are South Africa and the United States.
- European markets represent 21%
The nearest port: the Port of Durban (South Africa). Distance Durban - Maseru: 552 kilometres
Free Trade Agreements (FTA) and Preferential Access of Lesotho:
- Southern African Development Community (SADC)
- COMESA-EAC-SADC Tripartite
- Southern African Customs Union (SACU)
- India-Southern Africa Customs Union
- Preferential market access arrangements with Australia, Canada, the European Free Trade Area (EFTA), the European Union (EU), Japan, New Zealand, Turkey, and the United States.
- Cotonou Agreement
- Generalised System of Preferences (EU-GSP)
- African Growth and Opportunity Act (AGOA)
Lesotho is a member of:
- African Union (AU) - Convention on Preventing and Combating Corruption
- African Development Bank
- Economic Commission for Africa (ECA)
- New Partnership for Africa's Development (NEPAD)
- Forum India-Africa-Lesotho
- Forum China-Africa-Lesotho
- Africa-South America Summit (ASA)
- International Monetary Fund (IMF)
- World Custom Organisation
- World Bank (WB)
- World Trade Organisation (WTO)
- Multilateral Investment Guarantee Agency (MIGA)