Business in Lesotho

EENI- School of International Business

Subject: Foreign Trade and Doing Business in Lesotho. Maseru. Syllabus:

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

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

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

Sample of the subject - Doing Business in Lesotho:
Doing Business in Lesotho

We Trust in Africa

Description of the Subject (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

The 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. 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

The 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. The Textile products exported 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. The Lesotho Textile Exporters Association is the main employer association of the sector

The 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.

The Lesotho National Development Corporation is the institution of the Government of Lesotho that design and implements the industrial development policy.

The International Trade of Lesotho:

  1. Imports: 89% of Lesotho's imports are 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 United States
  3. The 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)
    1. SADC-European Union Economic Partnership Agreement (negotiation)
  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 Association (EFTA), Japan, New Zealand, Turkey, and the United States
  6. Africa-European Union Strategic Partnership (Cotonou)
  7. Generalised System of Preferences (EU-GSP)
  8. African Growth and Opportunity Act (AGOA)

Custom Union of the Southern African Development Community

EFTA-Southern African Customs Union (SACU) Free Trade Agreement

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



U-EENI University Catalonia is Spain