Chapter 9: Agricultural sector and international trade in Lesotho

This chapter discusses the status of the agricultural sector and international trade; the drivers, opportunities and barriers of agricultural production and trade in Lesotho; trade agreements and policy developments affecting agricultural trade; the history of agricultural production and trade in Lesotho; agricultural trade patterns over the past 25 years and transition pathways from food insufficiency to food self-sufficiency and export. Lesotho is an agro-based economy as agriculture is the biggest informal employment source for most Basotho. At the inception of development planning at the beginning of the 1970s, Lesotho’s agricultural sector contributed significantly to gross domestic product, which contributed around 40%. The first five-year development plan for Lesotho was from 1970/71 to 1974/75, with the highest priority during the plan period being agricultural productivity in both crop and livestock sectors. Lesotho’s distant history shows that it used to export its agricultural produce. However, the reality now is that Lesotho is a net food importer. It depends on imports for over 80% of its food requirements. Lesotho has a dearth of studies on agricultural and international trade activity. This study seeks to fill this gap. The study collected data through desktop research, stakeholder consultations, key informant interviews and questionnaires. The researchers collected secondary data from the Bureau of Statistics, United Nations Comtrade and Food and Agriculture Organisation Corporate Statistics to address the objective of this study. The stakeholder consultations and interviews involved government ministries, the private sector, and parastatals. Primary data were gathered from representatives from the Ministry of Trade, Industry, Business Development and Tourism, Revenue Services Lesotho and the Ministry of Agriculture, Food Security and Nutrition. Lesotho has an agro-based economy, with agriculture serving as the primary source of informal employment for the majority of Basotho. This study utilised both primary and secondary data sources to analyse and describe the agricultural sector and international trade in Lesotho. The chapter recommends subsectors with massive potential for investment in the country to enhance international trade. These include aquaculture, cannabis and horticulture (e.g. apples, peaches and potatoes). There is a need to promote and practice sustainable agriculture and improve access to climate finance for smallholder farmers to enhance their adaptive capacity. The study also recommends public and private investment in the better utilisation of the country’s vast water resources to unlock the agricultural sector’s potential by reducing dependency on rainfed production systems.