Economy of Lesotho

Lesotho’s major natural resource is water, often referred to as ‘white gold’ by the Basotho people. During 1995 and 1997, with intense construction activities involving the multi-million Lesotho Highlands Water Project, Lesotho registered an impressive economic performance – the real GDP growth rate made Lesotho one of the top ten performers in Africa at this time. Completion of a major hydropower facility in January 1998 now permits the sale of water to South Africa, generating royalties that will be an important source of income for Lesotho. The positive impact of the water project (refer to separate section for further details) and the small but rapidly growing manufacturing sector contributed to the spurt in economic growth. The lessening economic contribution of the project as it nears completion will be more than offset by royalty payments from South Africa.

The Post Office Building- Maseru

The economy of Lesotho is based on subsistence farming and animal husbandry, as well as small-scale industries that include clothing, footwear, textiles, food processing and construction. The small manufacturing base depends largely on farm products to support the milling, canning, leather and jute industries. The great majority of households gain their livelihoods from subsistence farming and migrant labour, with a large portion of the adult male workforce employed in South African mines (although the number of such mine workers has declined steadily over the past years). In the past financial year, Lesotho’s economy slowed down substantially because of major political conflicts causing temporary disruption in business activities. Unemployment remains high and is one of the most serious problems facing Lesotho, with poverty still severe.

In order to attain its macroeconomic objectives, the government of Lesotho is continuing to place high priority on parastatal privatization and private sector development, with this strategy forming the primary source of growth and employment creation. Based on free market principles and private ownership of property, the Lesotho economy presents a relatively open economic and business climate. Any institutional and regulatory constraints that impede growth are being addressed.

Lesotho’s fiscal policy for 1999/2000 and beyond is focused on maintaining budgetary expenditures at sustainable levels. Characterised by the growing importance of the private sector and increased globalisation of production and trade, the economy of Lesotho faces the beginning of a purposeful development phase.

The slow-down in the world economy during 1998/99 has had far reaching effects on developing countries, with aid and private capital flows to emerging markets reducing. South Africa itself has the most developed and well-diversified economy, with agriculture, mining, secondary industry, commerce and a broad structure of service establishments contributing to the wealth of the nation. Lesotho’s ability to achieve its sustainable human development objectives is closely linked to the evolving economic and political dynamics of this larger neighbour, as well as other countries of the Southern African Development Community (SADC). Economic swings in South Africa are the largest single influence on Lesotho’s economy, with inflation following the trends in this country. Proceeds from membership in a common customs union with South Africa form the majority of government revenues expected to be significantly affected by events currently taking place in the world economy

Industry of Lesotho

The economy of Lesotho has developed considerably due to the contributions from Lesotho Industry. The mission that has been set up by the Ministry of Trade and Industry is to generate more revenue and enable settings for industrial, commercial and agri-business expansion.
Lesotho has extensive range of light industries that consist of tapestry weaving, tire remodeling, production of textiles and diamond processing. In Lesotho, production of candles, shoes, ceramics, electric lighting, fertilizers, explosives and furniture takes place. During the period of 1980s, industrial development was promoted in Lesotho by the Lesotho National Development Corporation to provide a boost to the production of fruits, beer, vegetables, wire, steel and parachutes.
There has been instances of immense growth in the manufacturing sector of Lesotho in recent times. Manufacturing in the country largely depends on the agricultural inputs to support canning, milling, jute and leather industries.

Mining industry is also on rise in Lesotho due to the rich deposition of uranium in the country. Diamond is the chief profitable mineral of the country. Urban growth in Lesotho has supplied to the augmentation of catering and construction sectors. The important materials exported from Lesotho Industry are clothing, ceramics, cut diamonds, inedible crude materials, furniture, miscellaneous manufactured wool and goods. The year 1991 witnessed the opening of a television assembly plant at Lesotho
Workers in Lesotho's garment factories are staying healthy thanks to a HIV programme supported by DFID.

More than 40,000 people in the landlocked southern African country are employed in the garments industry, which every year produces millions of t-shirts, jeans and other high street staples for sale around the world.
These items are Lesotho's biggest earning exports, and business appears to be booming. Yet in the country's garments factories there is a health challenge that, as well as having a huge human cost, could stand in the way of the ongoing growth of the garments sector: the massive prevalence of HIV infection - more than 40% - among workers

Rivers and Dams of Lesotho

Below is an overview of the main features of the first three phases of the project.

Phase IA Phase IB Phase II Phase III

Name Katse Dam Mohale Dam Mashai Dam Tsoelike Dam

Dam height (m) 155 153 182 155

Power generation* (MW)

(installed capacity)

110 N/A 166 N/A

Water transfer capacity* (m³/s) 16.9 10.1 28.0 8.6

Transfer tunnels Yes Yes Yes No

The Orange River (Afrikaans/Dutch: Oranjerivier), Gariep River, Groote River or Senqu River is the longest river in South Africa. It rises in the Drakensberg mountains in Lesotho, flowing westwards through South Africa to the Atlantic Ocean. The river forms part of the international borders between South Africa and Namibia and between South Africa and Lesotho, as well as several provincial borders within South Africa. Although the river does not pass through any major cities, it plays an important role in the South African economy by providing water for irrigation, as well as hydroelectric power. The river was named by Robert Jacob Gordon after the Dutch Royal House

Lesotho- Geography

Lesotho is the only independent state in the world that lies entirely above 3,281ft in elevation.Its lowest pt. 4,593ft is thus the highest in the world.Over 80% of the country lies above 5,906ft .Lesotho is also the southernmost landlocked country in the world and is entirely surrounded by the country of South Africa.
Basutoland gained its independence from Britain and became the Kingdom of Lesotho in 1966.

 Because of its elevation, the country's climate is cooler than in most other regions at the same latitude. Its climate zone can be classified as continental.
Lesotho is poor in natural resources. Economically the most important resource is water. The Lesotho Highlands Water Project allows exporting water from the Malibamatso, Matsoku, Senqu and Senqunyane rivers to South Africa, while also generating hydroelectric power for Lesotho's needs. As of April 2008, the first phase of the project has been completed. The project already accounts for an estimated five percent of Lesotho's GDP, and when fully completed, it could account for as much as 20 percent.


The main mineral resource is diamonds from the Letseng diamond mine in the Maluti mountain range. The mine produces very few stones, but has the highest dollar ratio per carat of any diamond mine in the world. Other mineral resources include coal, galena, quartz, agate and uranium deposits, but their exploitation is not considered commercially viable. Clay deposits can be found in the country, and are used for producing tiles, bricks and other ceramics.
Much of the population engages in subsistence farming, even though only 10.71% of the country's surface is classified as arable land and 0.13% has permanent crops Much of the land has been ruined by soil erosion. The most fertile farmlands are in the northern and central lowlands, and in the foothills between the lowlands and the mountains. Large tracts of the fertile farmland to the north of the country—in the Free State region of South Africa—were lost to European colonists in wars during the 19th century

Lesotho - History (Africa).

Lesotho  officially the Kingdom of Lesotho, is a landlocked country and enclave, completely surrounded by its only neighbouring country, the Republic of South Africa. It is a small country with a population of approximately 2 million. Its capital and largest city is Maseru. Lesotho is a member of the Commonwealth of Nations. The name Lesotho translates roughly into the land of the people who speak Sesotho. About 40% of the population live below the international poverty line of US $1.25 a day.

The present Lethoso ( then called Basutoland) emerged as a single polity under king Moshoeshoe I in 1822.

In 1854 the British pulled out of the region, and in 1858 Moshoeshoe fought a series of wars with the Boers in the Free State-Basotho War, losing a great portion of the western lowlands. The last war in 1867 ended when Moshoeshoe appealed to Queen Victoria, who agreed to make Basutoland a British protectorate in 1868. In 1869, the British signed a treaty at Aliwal North with the Boers that defined the boundaries of Basutoland and later Lesotho, which by ceding the western territories effectively reduced Moshoeshoe's kingdom to half its previous size.[citation needed]

Following the cession in 1869, the British initially transferred functions from Moshoeshoe's capital in Thaba Bosiu to a police camp on the northwest border, Maseru, until administration of Basutoland was transferred to the Cape Colony in 1871. Moshoeshoe died on March 11, 1870, marking the end of the traditional era and the beginning of the colonial era, and was buried at Thaba Bosiu. During their rule between 1871 and 1884, Basutoland was treated similarly to territories that had been forcefully annexed, much to the chagrin of the Basotho. This led to the Gun War in 1881. In 1884, Basutoland was restored its status as a Crown colony, with Maseru again its capital, but remained under direct rule by a governor, though effective internal power was wielded by traditional chiefs.
1959 stamps for the Basutoland National Council.
Basutoland gained its independence from Britain and became the Kingdom of Lesotho in 1966.

( Summary of 48 poor countries )Rank of Moldova from the Poorest

Summary of 48 Poor countries

Africa...Asia......LatinAmerica........Europe

33..........13...............1............................1

Rank of Maldova from the poorest: 48th

Rank from the Richest: 157th

National average per capita income using atlas method in 2003: 590 ( India -530)

Politics in Moldova

The politics of Moldova takes place in a framework of a parliamentary representative democratic republic, whereby the prime minister is the head of government and of a multi-party system. Executive power is exercised by the government. Legislative power is vested in both the government and parliament. The judiciary is independent of the executive and the legislature. The position of the breakaway republic of Transnistria, relations with Romania, and integration into the EU dominate the political agenda
Summary of the 28 November 2010 Parliament of Moldova election results


Parties and coalitions Votes % +/− Seats

Party of Communists of the Republic of Moldova 676,761 39.32 −5.37 42

Liberal Democratic Party of Moldova 506,365 29.42 +12.85 32

Democratic Party of Moldova 218,847 12.72 +0.18 15

Liberal Party 171,434 9.96 −4.72 12
Office Name Party Since

President Nicolae Timofti Independent 23 March 2012

Prime Minister Vlad Filat Liberal Democratic Party

Alliance for European Integration 25 September 2009