Overview

The Kingdom of Lesotho is made up mostly of highlands where many of the villages can be reached only on horseback, by foot or light aircraft.

During the winter shepherds wearing only boots and wrap-around blankets have to contend with snow. While much of the country, with spectacular canyons and thatched huts, remains untouched by modern machines, developers have laid down roads to reach its mineral and water resources. Lesotho is one of few African countries to see snow regularly. The Lesotho Highlands Water Project was completed in the 1990s to supply South Africa with fresh water.

Economic Indicators 2021 and 2022

Capital City	Maseru
Country size:	30 355 km2
GDP at current prices:	R37.4 billion (2023)
Population:	2,103,555 (2023)
Independence Day	4 October
Website	www.gov.is
GDP per capita:	R14,613
Real economic growth rate:	-0.4%
Annual inflation rate:	5.2%
Merchandise imports (intra-SACU Trade):	R18.1 billion
Merchandise exports (intra-SACU Trade):	R4.2 billion
Imports to the Rest of the World	R28.2 billion (2023)
Exports to the Rest of the World	R16.1 billion (2023)

 Economic Performance 2021

Lesotho’s nominal GDP is estimated at M37.8 billion in 2021 against the previous projection of M33.1 billion in 2020. GDP is forecast at M41.7 billion in 2022. Lesotho’s the overall economic growth declined by -6.8 percent of GDP in 2020 due to the pandemic. Growth later improved to 2.9 percent in 2021 as some sectors recovered from the pandemic shock. These projections are, however, subject to risks relating to the future path of the pandemic and its impact on key sectors of the economy.

Lesotho continues to be faced with a current account deficit. The deficit stood at M688 million (1.8 percent of GDP in 2020/21) widening to M2 billion (5.4 percent of GDP) in 2021/22 mainly due to declining terms of trade since 2012/13 as growth in exports was lower than growth in imports.

Growth is estimated at 2.3 and 2.4 percent in 2023 and 2024 respectively driven by growth in mining output and construction sectors-especially from the Lesotho Highlands Water Project II including wholesale & retail trade sectors.