Business in Lesotho

EENI- School of International Business

Subject Subject (Course): Foreign Trade and Doing Business in Lesotho. Maseru:


  1. Introduction to the Kingdom of Lesotho (Southern Africa).
  2. Doing Business in Maseru.
  3. The Economy of the Kingdom of Lesotho
  4. Foreign Trade of Lesotho
  5. Market access
  6. Lesotho Customs and Excise Administration
  7. Business and Investment Opportunities in Lesotho
    - Textile and garment sector
    - Plastic products
    - Leather and footwear
    - Consumer electrical and electronic appliances
    - Food processing and beverages
    - Mining
    - Environmental projects
    - Energy
    - Health sector
    - Development of infrastructure
  8. Case Study:
    - Lesotho Highlands Water Project
    - Exporters’ guide to preferential trade arrangements applicable to Lesotho
    - Lesotho Textile Industry
  9. Lesotho National Development Corporation
  10. History of the Basotho

Objectives of the subject “Foreign Trade and Doing Business in the Kingdom of Lesotho”:

  1. To analyse the economy and foreign trade of Lesotho
  2. To evaluate business opportunities in the Kingdom of Lesotho
  3. To explore Lesotho's trade relations with the student's country
  4. To know Lesotho's Free Trade Agreements (FTAs)
  5. To develop a business plan for the Lesotho's market


Subject “Doing Business in Lesotho” is studied...
  1. Doctorate in Business in Africa
  2. Professional Masters (e-learning): Africa, International Business
  3. Course: Southern Africa

Course learning materials in English or French Lesotho Portuguese Lesoto Spanish Lesoto

Credits of the subject “Foreign Trade and Doing Business in Lesotho”: 0.5 ECTS Credits

Recommendations for Basotho students.

Sample of the subject - Foreign Trade and Doing Business in Lesotho:
Doing Business in Lesotho

We Trust in Africa

Description Subject Description (Doing Business in Lesotho).

The Kingdom of Lesotho (Africa):

Lesotho: “The Switzerland of Africa.”

An African monarchy and landlocked country.

  1. Lesotho is a monarchy
  2. Capital: Maseru (393,000)
  3. Frontiers of Lesotho: South Africa
  4. Area: 30,355 square kilometres
  5. Population 1.9 millions of people
  6. The main languages: Sesotho, Zulu, and English
  7. The currency of Lesotho: Loti (plural Maloti)

The main religion in Lesotho: Christianity.

  1. Christians (90% of the population)
  2. Protestants (45%)
  3. Catholics (45%).

Lesotho belongs to the Southern African Economic Area of the African Civilisation.

Foreign trade of Lesotho:
Foreign trade of Lesotho

Economic Profile of Lesotho.

  1. Free market economic system
  2. GDP growth rate: 6.5%. 4,4% average since 2003.
  3. Manufacturing: 10.3% of GDP
  4. Service industries: 53%
  5. Agriculture: 10.3%
  6. The inflation: 5,9%
  7. Unemployment: 25%
  8. The main resources: water.
  9. The main economic activities: farming and animal husbandry, clothing, footwear, textiles, food processing, and construction
  10. Most dynamic sectors: real estate and service

Lesotho Textile Industry.

  1. 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).
  2. Textile products exported to Southern African Customs Union (SACU) members are exported without taxes.
  3. More than 40,000 people work in this sector, mainly woman.
  4. Global brands like Wal-Mart or Pepe Jeans has facilities in Lesotho.
  5. 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:

  1. Imports: 89% of Lesotho's imports are from South Africa, other import partners are the countries of the Southern African Development Community (SADC) region
  2. Exports. The main export markets of Lesotho (86%) are South Africa and the United States.
  3. European markets represent 21% of exports.

The nearest port: the Port of Durban (South Africa). Distance Durban - Maseru: 552 kilometres

Southern African Customs Union (SACU)

Free Trade Agreements (FTA) and Preferential Access of Lesotho:

  1. Southern African Development Community (SADC)
  2. COMESA-EAC-SADC Tripartite
  3. Southern African Customs Union (SACU)
  4. India-Southern Africa Customs Union agreement
  5. 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.
  6. Cotonou Agreement
  7. Generalised System of Preferences (EU-GSP)
  8. African Growth and Opportunity Act (AGOA)

Custom Union of the Southern African Development Community

Lesotho is a member of:

  1. African Union (AU) - Convention on Preventing and Combating Corruption
  2. African Development Bank
  3. Economic Commission for Africa (ECA)
  4. New Partnership for Africa's Development (NEPAD)
  5. Forum India-Africa-Lesotho
  6. Forum China-Africa-Lesotho
  7. Africa-South America Summit (ASA)
  8. International Monetary Fund (IMF)
  9. World Custom Organisation
  10. World Bank (WB)
  11. World Trade Organisation (WTO)
  12. Multilateral Investment Guarantee Agency (MIGA)

COMESA-EAC-SADC Tripartite Agreement

SADC-European Union Free Trade Agreement

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