Country risk rating

C3

SENSITIVE RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD 1.85bn (World ranking 178, World Bank 2020)
Population 2.14mn (World ranking 145, World Bank 2020)
Form of state Parliamentary Constitutional Monarchy
Head of government Moeketsi Majoro (Prime Minister)
Next elections 2022
  • Duty-free access to the US market, particularly benefitting the textile industry
  • Natural resources (water and diamonds)
  • Low growth in regional trade partners, such as South Africa, threatens Lesotho’s fiscal sustainability
  • Significant political risk
  • Strong poverty rate (as of 2018, 53.7% of the population is trapped under the poverty line), coupled with high inequality and unemployment
  • High-level of HIV-AIDS (25% of the adult population) and tuberculosis
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