Lesotho’s endeavour to build an export-led economy as prioritized by the Government of Lesotho’s National Strategic Development Plan (NSDP II) Extended, is driven by the significant contribution exports make toward its GDP and employment creation. Lesotho’s main export commodities include water, clothing and garments, diamonds, wool and mohair, trout, deciduous fruits (apples), leatherworks, medicinal cannabis, car seat covers, circuit breakers etc. There also exists emerging industries such as cosmetics, natural ingredients and essential oils (agave, aloe, rosehip, cannabis, herbs, spices and teas), water bottling, agricultural, agricultural products, youth clothing brands etc.
Trade Facilitation
Trade is critical to Lesotho’s future and a driving force for economic growth. An enabling environment for trading is one that allows faster, fairer, more predictable, and transparent processing and clearance of imports and exports, all at the lowest cost to the traders.
The trade facilitation agenda is spearheaded by the National Trade Facilitation Committee (NTFC) which is a coordination body comprising a myriad of government ministries, agencies, private sector and NGO’s.
Market Access
Lesotho being a member of SADC and SACU enjoys access to markets of all the concluded trade agreements
below:
- African
- Southern African Customs Union (SACU) – Access to close to 70 million people
- Southern African Development Community (SADC) – Access to 340 million people
- SACU + M – U.K. Economic Partnership Agreement (EPA) - Duty Free Quota Free (DFQF) – Access to 60 million plus people
- SACU - European Free Trade Asssociation (EFTA) Preferential Market Access to 14 million people
Custom Duties
As a SACU member, Lesotho uses the region’s common external tariff (SACU – CET) with rates generally ranging from 0% to 30%. The Revenue Services Lesotho (RSL) enforces customs legislation, including the Customs and Excise Act, 1982. In addition to tariffs, clearing fees are charged, and a permit system may be required for some imports, especially from non-SACU members.