Lesotho

Quick Facts

🇱🇸
Capital:
Maseru
Official Language(s):
English, Sotho
Currency:
Lesotho loti (L), South African rand (R)
Population:
2,142,252

Overview

Lesotho, formally the Kingdom of Lesotho, formerly known as Basutoland, is a landlocked country in Southern Africa. As an enclave of South Africa, with which it shares a 1,106 km (687 mi) border, it is the largest sovereign enclave in the world, and the only one outside of the Italian Peninsula. It is situated in the Maloti Mountains and contains the highest peak in Southern Africa. It has an area of over 30,000 km2 (11,600 sq mi) and has a population of about two million. Its capital and largest city is Maseru. The country is also known by the nickname The Mountain Kingdom/The Kingdom in the Sky.

Institutional Framework

The strength of a country's institutions directly impacts its economic development and stability. Strong institutions reduce uncertainty, protect property rights, and enable efficient markets through:
  • Rule of law and contract enforcement
  • Control of corruption
  • Government effectiveness and regulatory quality

* Indicators normalized to 0-100 scale

Economic Structure

The composition of an economy reveals its strengths, vulnerabilities, and potential for growth. Understanding the balance between sectors (agriculture, industry, services) and their sophistication helps assess economic resilience and development opportunities.

Economic Health & Trade

Economic Scale & Power

An economy with $2,412,130,056.559B(2021) GDP, showing moderate growth at 2.3%(2021). Emerging economy with development potential.

GDP Growth
2.3%(2021)
GDP PPP
$5,755,132,494.466

Economic Structure

Economic structure shows 49.8%(2021) in services, 32.1%(2021) in industry, and 6.0%(2021) in agriculture. Balanced economic structure.

Economic Health & Trade

Economic health indicators show 18.2%(2021) unemployment and 6.0%(2021) inflation. Trade profile with 46.1%(2021) exports and 93.0%(2021) imports as % of GDP.

Unemployment
18.2%(2021)
Inflation
6.0%(2021)
Exports/GDP
46.1%(2021)
Imports/GDP
93.0%(2021)

Innovation & Competitiveness

Innovation capacity determines a country's ability to compete in the global knowledge economy. Key indicators like R&D investment, patent applications, and high-tech exports reveal the potential for sustainable economic growth and value creation.

High-Tech Exports

0.1

% of manufactured exports

ICT Exports

0.5

% of total goods exports

Digital Adoption

43.7

% of population using internet

Mobile Connectivity

79.8

Subscriptions per 100 people

Manufacturing Value

16.5

% of GDP

International Position

A country's integration into global markets affects its economic opportunities and risks. Trade relationships, financial flows, and geographic advantages or constraints shape its development trajectory and resilience to external shocks.

Financial & Trade Geography

Trade Profile

Trade represents 139.19%(2021) of GDP, with a trade balance of -46.89%(2021).

FDI Inflows
-0.51%(2021)
FDI Outflows
N/A

Financial Security

External Debt

66.84%(2021)

Foreign Reserves

$0.80B(2021)(4.1 months of imports)

Supply Chain & Technology

Technology Trade

ICT Imports
2.95%(2021)
High-Tech Exports
0.07%(2021)

Economic Structure

Manufacturing
16.54%(2021)
Services
49.80%(2021)

Trade Agreements & Dependencies

Trade Agreements

No major trade agreements

Critical Dependencies

    Growth Trajectory

    Understanding growth patterns helps predict future economic performance and development challenges. Key factors include productivity trends, investment levels, and structural transformation progress, which together determine long-term prosperity potential.

    Growth Potential Indicators

    Human Capital

    Education and workforce development

    13.1/100

    Trade Position

    International trade and competitiveness

    20.1/100

    Economic Structure

    Sectoral balance and sophistication

    34.5/100

    Demographics & Human Capital

    Demographics are fundamental to understanding a country's economic potential and challenges. The population structure influences everything from labor force availability to social security systems and public spending priorities.

    Demographics

    Population Overview

    Total population of 2,261,542(2021) with 1.1%(2021) annual growth. Median age is N/A with fertility rate at 3.018 births/woman(2021).

    Life Expectancy
    53.062 years(2021)
    Birth Rate
    26.107 per 1,000(2021)

    Age Structure

    Working-age population (60.6%(2021)) with youth at 35.6%(2021) and elderly at 3.8%(2021). Total dependency ratio: 65.0%(2021).

    Young Dependency
    58.7%(2021)
    Old Dependency
    6.2%(2021)

    Gender & Migration

    Population is 51.3%(2021) female and 48.7%(2021) male, with sex ratio of 1.028 males/female(2021) at birth. Net migration: -3,449(2021).

    Male Mortality
    552.668/1,000(2021)
    Female Mortality
    432.957/1,000(2021)

    Development Indicators

    Urban population growing at 2.7%(2021) annually, with 70.5%(2021) in rural areas. Literacy rate: N/A.

    Urbanization
    29.5%(2021)
    Infant Mortality
    57.7 per 1,000(2021)

    Population Structure

    The population pyramid visualizes the age and gender distribution, revealing crucial insights about economic sustainability. A balanced pyramid with a strong working-age population (typically ages 15-64) indicates greater economic potential, as this group supports both the younger and older generations through:
    • Labor force participation and productivity
    • Tax contributions to support social services
    • Innovation and economic growth

    An aging population (top-heavy pyramid) or youth bulge (bottom-heavy) can create demographic pressures on social systems and economic stability.

    Source: World Bank Development Indicators

    Security Context

    Security considerations fundamentally affect economic development and investment attractiveness. Both geographic factors and military capabilities influence a country's stability and its ability to protect economic interests and maintain sustainable growth.

    Geographic & Resource Security

    Food & Agriculture

    Arable land comprises 7.2%(2021) of territory, with 80.1%(2021) total agricultural land. Cereal yield: 972.4 kg/hectare(2021).

    Food Production Index
    102.16(2021)
    Cereal Production
    98,320.46 MT(2021)

    Energy Security

    Net energy imports at N/A of consumption. Renewable energy makes up 50.4%(2021) of total. Electricity access: N/A.

    Resource Rents
    N/A

    Water Resources

    Fresh water resources of 788 m³/capita(2021) per person. Annual precipitation: 1.137 mm(2021).

    Forest Area
    1.5%(2021)

    Environmental Vulnerability

    2312.6%(2021) of population affected by climate disasters. Forest coverage at 1.5%(2021) providing natural buffer.

    Annual Rainfall
    1.137 mm(2021)

    Military & Security

    Military Capabilities

    Military expenditure at N/A of GDP. Armed forces personnel: N/A ( N/A of labor force).

    Arms Exports
    296 USD(2021)
    Arms Imports
    N/A

    Strategic Status

    Military Alliances

    No major military alliances

    Nuclear Status

    Non-Nuclear State

    Security Environment

    Refugee population: 138,422(2021)Internally displaced: 138,914(2021)

    Strategic Geography

    Strategic Features

    • Landlocked country
    • Borders 1 countries