The Context

Lesotho, known as the “Mountain Kingdom”, is a small landlocked country entirely encircled by South Africa. Classified as a lower-middle income country, Lesotho's economy is based on mining, water export, subsistence agriculture, textiles and remittances. Services, such as tourism, play an increasingly important role.

Almost half of its 2.3 million population live in poverty. Rural areas face significant challenges due to limited access to services and economic opportunities. Approximately 245,000 rural people are experiencing acute food insecurity.

Many people migrate out of Lesotho, primarily to South Africa. This significantly impacts household dynamics and increases reliance on remittances. In 2022, remittances totalled US$575.53 million, making up 25 per cent of GDP. Notably, women represent 45.8 per cent of these migrants, reflecting distinct gender dynamics in migration trends.

Despite economic growth, opportunities for income generation remain limited and are largely confined to urban areas and the industrial sector. The rural economy and agricultural development are crucial for Lesotho’s development and poverty reduction.

The Strategy

IFAD is committed to transforming rural Lesotho into a more resilient and economically vibrant area, enabling rural people to overcome poverty and malnutrition.

IFAD collaborates with the Government and rural communities themselves to ensure that they adopt transformational practices to regenerate landscapes and sustain livelihoods. Additionally, IFAD improves climate resilience and nutritional outcomes. Many of our investments support the wool and mohair industry.