Chapter two: Country background and context
challenge to Lesotho is to design and implement appropriate policy to enable it to participate more
meaningfully in economic integration arrangements and to widen its market base. In addition to
pursuing preferential trade arrangements, finding a niche and increasing competitiveness are the
key to progress in this regard.
88.
The development of the textile and manufacturing industries is a step in this direction. To enhance
private sector growth, Lesotho needs to be more strategic in: diversifying the economic base;
retaining and expanding the FDI base of the textile industry; attracting new FDI in order to develop
new industrial clusters; and supporting the local private sector through value-add activities in
agribusiness, sandstone mining and tourism.
89.
Lesotho could brand itself as a major tourist destination for those that love mountaineering and
other outdoor activities.
90.
Although Lesotho is said to have a high literacy rate in Africa, the Country Review Mission (CRM)
noted repeated concerns about lowly skilled and unskilled labour and the pervasive human
resource capacity constraints in the country. Lesotho needs to develop its human capital and the
right skill sets for a highly sophisticated service economy.
91.
Lesotho’s embracing of the African Peer Review Mechanism’s (APRM) principles of governance
and programmes of action is a step in the right direction for achieving its vision of becoming a
stable democracy, a united and prosperous country, and a country at peace with its neighbour and
enjoying the same levels of social and economic development. The challenge facing the country is
to consolidate the gains made through broadening the political space for various democracy actors
to shape the country’s governance trajectory. Besides strengthening institutions of governance, it
is also imperative that democratic culture and practice be embraced and entrenched. This culture
entails political representation, participation, accountability, human rights and the rule of law.
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