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Geography, agriculture and the economy

Geography

Lesotho is a predominantly mountainous, landlocked country that is completely surrounded by the territory of the Republic of South Africa. Formerly Basutoland, the Kingdom of Lesotho gained independence from the United Kingdom of Great Britain and Northern Ireland in 1966. Three fourths of the country, which has an area of about 30,350 km2, is covered by highlands with an average altitude of more than 1,600 m above sea level. Rainfall is sporadic and unreliable.

Summers are warm to hot, while winters are cold in the lowlands and foothills, and very cold in the mountains. Natural resources are limited, but Lesotho's rivers and mountainous terrain have a potential for hydroelectric development.

The population of 1.8 million is composed mainly of the Basotho people. About eight out of ten people live in the lowlands and foothills, where most of the country's scarce arable land is found. As the population grows, more people are moving into marginal areas, where poor land use and management result in further degradation of natural resources.

Agriculture

Agriculture's share in the gross domestic product (GDP) has declined to about 18 per cent. Yet more than half of the population depends on agriculture for a livelihood. Only about 25 per cent of the country's land has agricultural potential. Less than 10 per cent of the land is arable and the remainder of the agricultural land supports livestock. Soils and vegetative cover are poor, much of the land is severely degraded, and recurrent drought and hailstorms devastate crops.

Farmers cultivate mainly maize, sorghum and wheat on about 80 per cent of the total planted area. Most of them practice rainfed farming, and productivity is low. Crop production accounts for 70 per cent of agricultural GDP, and livestock production for 30 per cent.

Economy

Lesotho is a member of the South Africa Customs Union (SACU). Custom and excise duties collected from SACU sources account for about 50 per cent of government revenue. The country's economic performance has improved dramatically over the past decade, with support from development partners for structural adjustments to improve the efficiency of the public sector, promote investment opportunities in the private sector and diversify the fiscal revenue base.

In the past, Lesotho relied largely on remittances from migrant workers employed in South Africa for foreign exchange. Now it is beginning to exploit the economic potential of its rivers and mountainous terrain. After the completion of a large-scale hydropower facility in 1998, water has become a major export to South Africa. A thriving manufacturing base has developed in recent years, and there is a rapidly expanding apparel-assembly sector.

 

Source: IFAD