Lesotho: Trade Profile
Though it is a landlocked country, foreign trade plays a key role in Lesotho’s economy, representing around 149% of GDP (World Bank, latest data available). The southern African nation is a member of the SACU (Southern African Customs Union) Free Trade Area and enjoys privileged access to markets in the EU (through the Economic Partnership Agreement and the SADC-EFTA Free Trade Agreement), the United States (African Growth Opportunity Act), Latin America (Mercosur), as well as Canada, Japan, and the Scandinavian countries. The country's trade policy is designed to liberalize the economy and reach more export markets. However, long and complicated red tape and the large number of documents required can limit or even discourage exchanges. Lesotho mainly exports diamonds (35.2%), knit women's suits (8.5%), non-knit men's suits (8.4%), water (5.3%), and knit t-shirts (5.3%); whereas its main imports include refined petroleum (12%), light rubberized knitted fabric (5.4%), raw cotton (4.5%), electricity (2.8%), and synthetic filament yarn woven fabric (2% - data OEC 2022).
Lesotho's main customers are South Africa (37.4%), the United States (28.1%), Belgium (18.9%), United Arab Emirates (6.3%), and the United Kingdom (2.8%). Its main suppliers are South Africa (78.4%), China (6.1%), Taiwan (4.8%), Zimbabwe (3.5%), and India (1.7% - data OEC 2022).
Lesotho's trade balance is structurally in deficit, a trend that is expected to continue. According to WTO data, in 2022, Lesotho collected USD 894 million from exports of goods but spent USD 1.8 billion on imports (-4.4% and +1.7% y-o-y, respectively). The country imported services worth USD 442 million, while it exported only USD 14 million. The World Bank estimated the country’s trade deficit to account for 52.5% of GDP in the same year. Exports are facing challenges due to weak regional and global demand, particularly in apparel, textiles, and natural resources, which continue to dominate the export market. As per the World Bank's first estimates, exports of goods and services increased by 2.2% in 2023, while imports increased at a faster pace (10.3%).
| Foreign Trade Indicators | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Imports of Goods (million USD) | 1,734 | 1,380 | 1,824 | 1,856 | 1,772 |
| Exports of Goods (million USD) | 919 | 845 | 935 | 894 | 794 |
| Imports of Services (million USD) | 447 | 384 | 408 | 445 | 402 |
| Exports of Services (million USD) | 29 | 13 | 22 | 18 | 16 |
| Imports of Goods and Services (Annual % Change) | -1 | -1 | -0 | -1 | -0 |
| Exports of Goods and Services (Annual % Change) | -15 | -15 | 8 | -6 | -16 |
| Trade Balance (million USD) | -719 | -713 | -753 | -747 | -794 |
| Foreign Trade (in % of GDP) | 141 | 141 | 139 | 142 | 142 |
| Imports of Goods and Services (in % of GDP) | 94 | 97 | 93 | 96 | 99 |
| Exports of Goods and Services (in % of GDP) | 46 | 44 | 46 | 47 | 43 |
Source: WTO – World Trade Organisation ; World Bank - Latest available data.
To go further, check out our service Import-Export Flows
| 0.0 bn USD of services exported in 2022 | |
|---|---|
| 59.94% | |
| Personal travelPersonal travel | 59.94% |
| OtherOther | 37.29% |
| 23.44% | |
| 12.60% | |
| 2.77% | |
| 1.00% | |
| 0.11% | |
| 0.10% | |
| 0.04% | |
| 0.4 bn USD of services imported in 2022 | |
|---|---|
| 74.18% | |
| Business travelBusiness travel | 73.11% |
| Personal travelPersonal travel | 1.07% |
| OtherOther | 13.59% |
| 12.23% | |
| 7.62% | |
| 2.45% | |
| 1.44% | |
| 1.35% | |
| 0.59% | |
| 0.14% | |
Source: United Nations Statistics Division, Latest Available Data
Member of Southern African Customs Union (SACU)
Member of Southern African Customs Union (SACU)
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Latest Update: May 2024
