Doing Business in Lesotho

The objectives of the subject “International Trade and Business in the Kingdom of Lesotho” are the following:

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

The Subject “Foreign Trade and Business in Lesotho” belongs to the following Online Programs taught by EENI Global Business School:

Doctorate: African Business, World Trade.

Masters: Business in Africa, International Business, Foreign Trade.

Course: Business in Southern Africa.

Languages: or Lesotho Lesoto Lesoto.

Credits of the subject “Foreign Trade and Business in Lesotho”: 1

Free Trade Agreements and Preferential Access of Lesotho

1. Lesotho and the Southern African Economic Area;
2. SADC
   1. EU-SADC Free Trade Agreement.
3. COMESA-EAC-SADC Tripartite Agreement;
4. Southern African Customs Union (SACU)
   1. India-Southern Africa Customs Union (SACU) Agreement;
   2. EFTA-Southern African Customs Union (SACU) Free Trade Agreement;
   3. UK-SACU and Mozambique Economic Partnership Agreement;
   4. MERCOSUR-Southern African Customs Union (SACU) Preferential Trade Agreement.
5. African Continental Free-Trade Area;
6. Preferential market access arrangements with Australia, Canada, the European Free Trade Association (EFTA), Japan, New Zealand, Turkey, and the U.S.;
7. EU-Lesotho:
   1. Africa-EU Strategic Partnership;
   2. Generalized System of Preferences (EU-GSP).
8. U.S.-Lesotho: African Growth and Opportunity Act (AGOA).

1. WTO
   1. Agreement on Trade in Services (GATS);
   2. Agreement on the Application of Sanitary Measures;
   3. Agreement on Technical Barriers to Trade;
   4. Agreement on Preshipment Inspection;
   5. Agreement on Safeguards;
   6. Trade Facilitation Agreement.
2. WCO
   1. Revised Kyoto Convention.
3. Convention Harmonization of Frontier Controls of Goods;
4. Hamburg Rules (Sea);
5. International Maritime Organization (IMO) - not a member
   1. Istanbul Convention - not a member.
6. Customs Convention on Containers - not a member.

African Trade and Economic Organizations:

1. Economic Commission for Africa (ECA);
2. African Union
   1. AU Convention on Combating Corruption;
   2. AUDA-NEPAD.
3. African Development Bank;
4. Africa-India Cooperation;
5. Africa-BRICS;
6. Africa-Turkey Partnership;
7. Afro-Arab Cooperation;
8. BADEA;
9. Africa-Asia Partnership;
10. Africa-Korea Partnership;
11. Africa-Japan Cooperation;
12. Africa-South America Summit;
13. Forum on China-Africa Cooperation.

Global Organizations:

1. UN
   1. UNCTAD;
   2. ITC;
   3. UNCITRAL;
   4. WIPO.
2. WB;
3. WTO;
4. International Monetary Fund (IMF);
5. Multilateral Investment Guarantee Agency (MIGA).

The Kingdom of Lesotho

1. Lesotho (Africa) is a monarchy;
2. Mosotho Capital: Maseru (393,000);
3. Borders of Lesotho: South Africa;
4. Mosotho Area: 30,355 km²;
5. Population of Lesotho: 2.2 million people
   1. Bantu.
6. The main languages are Sesotho, Zulu, and English;
7. Currency of Lesotho: Loti (plural Maloti);
8. Independence from the UK in 1966;
9. The currency of Lesotho: Loti and South African Rand;
10. The Rand Monetary Area is formed by Lesotho, Eswatini, Namibia and South Africa (the South African rand as a common currency).

More information about Lesotho (EENI African Business Portal).

Main religion in Lesotho: Christianity.

1. African Traditional Religions;
2. Christians (90% of the population)
   1. Protestants (45%);
   2. Catholics (45%).

Lesotho belongs to the Southern African Economic Area (African Civilization).

Economic Profile of Lesotho.

1. Lesotho has a Free market economic system;
2. Manufacturing: 10.3% of the GDP;
3. Service industries: 53%;
4. Agriculture: 10.3%;
5. Inflation of Lesotho: 5.9%;
6. Unemployment in Lesotho: 25%;
7. The main resource: water;
8. The main economic activities of Lesotho are farming and animal husbandry, clothing, footwear, textiles, food processing, and construction;
9. Most dynamic sectors of Lesotho are real estate and services.

Lesotho Textile Industry.

1. The United States Growth and Opportunity Act (AGOA) is one of the reasons for the textile industry growth; today Lesotho is one of the top African garments exporter to the U.S. market (340 million dollars);
2. Textile exported products to the 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.

Lesotho Highlands Water Project is one of the largest projects in Africa. In this bi-national project (Lesotho and South Africa) working 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 comes from South Africa, other import partners are the Southern African Development Community (SADC) countries;
2. Exports. The main export markets of Lesotho (86%) are South Africa and the U.S.;
3. The European markets represent 21% of exports.

Nearest port: Port of Durban (South Africa).

1. Distance from Durban to Maseru: 552 kilometers.

Foreign trade of Lesotho:

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