Lesotho

Small, landlocked, and mountainous, Lesotho relies on remittances from miners employed in South Africa, customs duties from the Southern Africa Customs Union (SACU), and export revenue for the majority of government revenue. However, the government has recently strengthened its tax system to reduce dependency on customs duties. Completion of a major hydropower facility in January 1998 permitted the sale of water to South Africa and generated royalties for Lesotho. Lesotho produces about 90% of its own electrical power needs. As the number of mineworkers has declined steadily over the past several years, a small manufacturing base has developed based on farm products that support the milling, canning, leather, and jute industries, as well as an apparel-assembly sector. Despite Lesotho’s market-based economy being heavily tied to its neighbor South Africa, the US is an important trade partner because of the export sector’s heavy dependence on apparel exports. Exports have grown significantly because of the trade benefits contained in the Africa Growth and Opportunity Act. The economy is still primarily based on subsistence agriculture, especially livestock, although drought has decreased agricultural activity. The extreme inequality in the distribution of income remains a major drawback. Lesotho has signed an Interim Poverty Reduction and Growth Facility with the IMF. In July 2007, Lesotho signed a Millennium Challenge Account Compact with the US worth $362.5 million. Economic growth dropped in 2009, due mainly to the effects of the global economic crisis as demand for the country’s exports declined and SACU revenue fell precipitously when South Africa - the primary contributor to the SACU revenue pool - went into recession, but growth returned to 3.5% in 2010.

$3.31 billion (2010 est.)

$3.198 billion (2009 est.)

$3.148 billion (2008 est.)

$1.799 billion (2010 est.)

3.5% (2010 est.)

1.6% (2009 est.)

3.9% (2008 est.)

$1,700 (2010 est.)

$1,700 (2009 est.)

$1,600 (2008 est.)

854,600 (2007 est.)

45% (2002)

49% (1999)

63.2 (1995)

56 (1986-87)

21.9% of GDP (2010 est.)

6.1% (2010 est.)

7.2% (2009 est.)

10.66% (31 December 2009)

14.05% (31 December 2008)

13% (31 December 2009 est.)

16.19% (31 December 2008 est.)

$653.3 million (31 December 2010 est)

$509.5 million (31 December 2009 est)

$1.057 billion (31 December 2010 est.)

$876 million (31 December 2009 est.)

$177.7 million (31 December 2010 est.)

$147.3 million (31 December 2009 est.)

corn, wheat, pulses, sorghum, barley; livestock

food, beverages, textiles, apparel assembly, handicrafts, construction, tourism

3% (2010 est.)

502 million kWh

516.9 million kWh (2007 est.)

0 kWh (2008 est.)

50 million kWh; note - electricity supplied by South Africa (2008 est.)

0 bbl/day (2009 est.)

2,000 bbl/day (2009 est.)

0 bbl/day (2007 est.)

1,553 bbl/day (2007 est.)

0 bbl (1 January 2010 est.)

0 cu m (2008 est.)

0 cu m (2008 est.)

0 cu m (2008 est.)

0 cu m (2008 est.)

0 cu m (1 January 2010 est.)

-$125 million (2010 est.)

$194 million (2009 est.)

$985 million (2010 est.)

$821 million (2009 est.)

manufactures 75% (clothing, footwear, road vehicles), wool and mohair, food and live animals

US 58.9%, Belgium 37%, Madagascar 1.2% (2008)

$1.766 billion (2010 est.)

$1.572 billion (2009 est.)

food; building materials, vehicles, machinery, medicines, petroleum products

China 26.3%, Taiwan 20.1%, Hong Kong 16.4%, South Korea 14.1%, India 9.2% (2008)

$893 million (31 December 2010 est.)

$988 million (31 December 2009 est.)

$647 million (31 December 2010 est.)

$671 million (31 December 2009 est.)

maloti (LSL) per US dollar - 7.9 (2010), 8.4737 (2009), 7.75 (2008), 7.25 (2007), 6.85 (2006)