Bussines in Lesotho
LESOTHO'S ECONOMIC GROWTH IN 2008 is estimated to have fallen to 4.2 per cent from 5.1 per cent in 2007. The slowdown is due, in part, to the global
financial and economic crisis but high inflation driven by soaring food and oil prices has also played a role. Growth is expected to fall further to
3.8 per cent in 2009 before picking up to 5.3 per cent in 2010.
New diamond mines, which opened in 2004 and 2005, continued to make significant contributions to Lesotho's economic growth.
However, manufacturing came under pressure in the second half of 2008 as consumer demand in the United States weakened.
It is estimated that textiles, footwear and leather products output will contract 10.7 per cent for the whole year, compared
with an increase of 5.1 per cent in 2007. GDP growth is expected to fall to 4.2 per cent in 2008 from 5.1 per cent in 2007,
slipping to 3.8 per cent in 2009 before recovering to 5.3 per cent in 2010. Inflation will likely have peaked in 2008 as oil and
food prices jumped, with price pressures expected to ease thereafter, giving the economy some relief.
Tourism presents an important opportunity for Lesotho to diversify, especially in view of the 2010 FIFA World Cup in South Africa.
However, tourist industry growth still lags behind other sectors and the government will need to provide support to improve infrastructure
Investing in Lesotho!
Lesotho occupies a unique geographical position reasonably centrally located within Southern Africa and with good access to some of the fastest
growing industrial and economic areas in the region such as Johannesburg and Pretoria. It is also within reasonable proximity to the
international ports such as Durban and Cape Town. This combined with the efforts of the Government of Lesotho to create a good enabling
environment for business make the country an attractive destination for foreign investment.
Analises of Lesoth Economic
1. Lesotho's Index of Economic Freedom Ranking was downgraded due to increases in government spending and decrease in financial
freedom. Business freedom in Lesotho is on par with the world average.
2. According to the Enterprise Surveys (2009) the top three constraints to doing business and investment are tax administration,
corruption and crime, theft and disorder.
3. Lesotho's overall Ease of Doing Business ranking slipped a couple of spots this year, reflecting lower scores for 8 indicators.
It takes 601 days to obtain a construction permit which is almost three times the regional average.
Lesotho Business comments
Doing business over here is the same like doing business others part of africa. Corruption, beuaracracy, etc. It is a virus in Africa that one day I hope someone must stand up and eliminated these virus(corruption and beuaracracy)
It's corruption the best killer in Africa and Aids.
Jean Maria , Cote d'voire
Doing can be very frustrated because we're in middle of South Africa
David sole , Lesotho
Honestly though, i'm so sick and tired of people naming corruption as the no.1 source of their refusal to invest in developing African Nations. The thing is, when you need their Diamonds, they provide. How can people get over corruption without having the support they need from investors?
Pina , Berlin, Germany
Home run! Great suglging with that answer!
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