| Title | Chapter 12: Strengths, weaknesses, opportunities and threats analysis for international trade in Lesotho |
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| DOI | https://doi.org/10.4102/aosis.2025.BK536.12 |
| Landing page | https://books.aosis.co.za/index.php/ob/catalog/book/536 |
| License | https://creativecommons.org/licenses/by-nc-nd/4.0/ |
| Copyright | Denis Nfor Yuni & Tsotang Tsietsi (eds.). Licensee: AOSIS (Pty) Ltd. The moral rights of the editors and authors have been asserted. |
| Publisher | AOSIS |
| Long abstract | This chapter analyses Lesotho’s international trade landscape through a strengths, weaknesses, opportunities and threats (SWOT) analysis, identifying the key factors that the country faces. Lesotho, a small mountainous kingdom wholly surrounded by the Republic of South Africa(RSA), confronts unique challenges and opportunities in international trade. Strengths include preferential trade arrangements, such as the Africa Growth and Opportunity Act (AGOA), which grants duty-free access to the United States market for Lesotho’s textiles and apparel industry, a major contributor to exports. While Lesotho benefits from a skilled and relatively inexpensive labour force, several economic challenges impede its growth. The country’s landlocked geography increases transportation expenses, and its mountainous terrain complicates infrastructure development. Furthermore, over-reliance on a single industry – textile and clothing manufacturing – makes the economy vulnerable to external shocks. Lastly, slow progress in implementing legal and institutional framework obligations may also hinder growth. Despite these structural bottlenecks, opportunities exist for economic diversification. For example, Lesotho can leverage its scenic beauty and cultural heritage to develop tourism. Additionally, regional integration efforts, such as those by the Southern African Development Community (SADC), offer expanded markets. Threats include competition from other low-wage countries and potential changes in the trade policies of major partners. Climate change also poses risks to Lesotho’s water resources, which are crucial for the textile industry. By capitalising on its strengths and addressing its weaknesses, Lesotho can harness opportunities in international trade. However, mitigating threats requires proactive strategies focused on diversification and resilience. This SWOT analysis provides a framework for policymakers to navigate Lesotho’s path towards a more robust and sustainable trading future. |
| Print length | 24 pages |
| Language | English (Original) |
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Tseko Nyesemane is the Deputy Commissioner of the Frontier Services (Customs) Department within the Client Services division at the Revenue Services Lesotho. He has over two decades of experience in customs operations, trade facilitation, and regional integration, including leading cross-border initiatives. Nyesemane holds a PhD in Economic and Management Sciences with Business Administration (Project Management) from North-West University, an MA in Economics from Renmin University of China, an MCom in Programme Management from Cranefield College, and a BA in Economics from NUL, Lesotho. Nyesemane also holds a Postgraduate Diploma in Higher Education from NUL, which supports his involvement in mentoring, strategy development, institutional reform, and professional development initiatives within the customs and trade environment.
Marcel Ratsiu is a regional expert in trade facilitation at the Department of Capacity Building, World Customs Organization (WCO) in Brussels, Belgium. Ratsiu is also affiliated with the NUL WTO Research Chair Programme. He holds a Master of Customs, Taxation and International Trade Law from the University of Münster in Germany, as well as a Master of Business Administration (MBA) in Supply Chain and Logistics Management from Guglielmo Marconi University in Italy. With over 20 years of experience, Ratsiu is a seasoned programme management specialist, holding a certificate from UCT, South Africa. Ratsiu specialises in international trade, supply chain and customs management, with a strong focus on regional integration, trade facilitation and customs procedures.