Lesotho

IFAD Asset Request Portlet

Country

Lesotho

12

Projects Includes planned, ongoing and closed projects

US$ 322.78 million

Total Project Cost

US$ 112.41 million

Total IFAD financing

339,720

Households impacted

The Context

Lesotho is a small land-locked country, completely surrounded by South Africa. It has a population of about 2 million and is classified as a low-income country.  

Since 1980, the Government has made considerable progress in developing Lesotho’s economy. Recent economic growth has been attributed to expansion of garment manufacture and mining, and to revenue generated by exporting water to South Africa. But these economic gains have not translated into improved well-being for the people. 

Income inequality and poverty rates remain high, especially in rural areas. The unemployment rate is 28 per cent, and about 30 per cent of rural people live in extreme poverty. Underemployment is widespread, especially in rural areas. 

About 70 to 80 per cent of the country’s population lives in rural areas, and more than three quarters of these people are engaged in agriculture – mostly traditional low-input, low-output rainfed cereal production and extensive animal grazing. An estimated 57 per cent of the population lives below the poverty line, according to a 2010/2011 household budget survey. Poverty has fallen in urban areas and climbed in rural areas. 

Lesotho cannot produce enough food to feed its growing population. The agriculture sector accounts for about 17 per cent of GDP. It is the primary source of income, or an important supplementary source, for more than half the population in rural areas. Only about 10 per cent of the country’s total land area is classified as arable.

In the past, remittances from mine workers were a major source of rural livelihoods, providing cash to purchase agricultural inputs or invest in household assets and housing. However, remittances have declined steadily over the past decade.

Despite the overall economic growth, opportunities to earn income remain limited. They are generally confined to urban areas and wage employment in the industrial sector. The rural economy and agricultural development will therefore continue to play a major role in Lesotho’s development strategy for the foreseeable future.

The Strategy

In Lesotho, IFAD loans support the efforts of smallholder farmers to ensure food security for their families, raise their incomes and improve overall nutrition. 

Increased productivity is a key to achieving these aims and reducing poverty in rural areas. IFAD programmes and projects encourage rural people's participation in planning and developing income-generating activities, including microenterprises.

Our strategy in the country has focused on three main opportunities for reducing rural poverty:

  • diversifying and intensifying agriculture and livestock production;
  • rehabilitating and reclaiming degraded lands, including rangelands;
  • developing rural financial services to support improved agricultural production and create income-generating activities.

Country Facts

An estimated 57 per cent of the population lives below the poverty line, according to a 2010/2011 household survey. Poverty has fallen in urban areas and grown in rural areas.

The agriculture sector accounts for about 17 per cent of GDP. It is the primary source of income, or an important supplementary source, for more than half of the rural population 

Since 1995, IFAD has supported nine programmes in the country for a total of US$78.9 million, benefiting more than 179,000 poor rural households.

Country documents

Related Assets

Lesotho Country Strategy Note, December 2018 Type: Country strategy note (CSN)
Region: East and Southern Africa

Country Experts

Projects and Programmes

Projects Browser

Related news

Related Assets

Lesotho and IFAD join to improve the livelihoods of the most vulnerable small-scale farmers

September 2020 - NEWS
160,000 poor rural households in Lesotho will benefit from new financing for a project that will boost food security and nutrition, mitigate the impact of climate change and strengthen livelihoods for greater income.

Related stories and blogs

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How livestock in Lesotho is adapting to climate change

January 2023 - BLOG
An IFAD-FAO study from Lesotho provides valuable insight on how to mitigate against climate change while sustainably producing enough healthy food for everyone.

Spinning yarns – Investing in wool and mohair in Lesotho

November 2019 - STORY
Wool and mohair form the bedrock of Lesotho’s rural economy. Producers range from smallholder farmers with small flocks, to breeders of large flocks of superior gene-quality animals. With over 1.2 million sheep and 845,000 goats there is a lot of potential to develop the industry.

Recipes for Change: Sechu Sa Nku (Mutton Stew)

June 2016 - STORY
Climate change – including rising temperatures, and a greater frequency of droughts and extreme rain events – is negatively affecting local communities living in rural parts of Lesotho. Lesotho ranks 158 out of 186 in the United Nations Development Programme UNDP Human Development Index. Poverty is concentrated in the rural parts of the country, being greatest in the mountain areas.

Related publications

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Agroecology: a holistic path towards sustainable food systems

June 2022
Agroecology applies ecological principles to agriculture and ensures a regenerative use of natural resources and ecosystem services, while addressing the need for socially equitable food systems in which people can choose what they eat and how it is produced.

What can smallholder farmers grow in a warmer world? Climate change and future crop suitability in East and Southern Africa

October 2021
With funding from ASAP2, eight Climate Risk Analysis reports were produced by the University of Cape Town, covering Angola, Lesotho, Malawi, Mozambique, Rwanda, Uganda, Zambia and Zimbabwe.

AVANTI country summaries

June 2021
The AVANTI country summaries provide insights and takeaways from AVANTI experiences at the national level.

Climate adaptation and mitigation measures for nutrition co-benefits in IFAD investments in Lesotho

June 2021
This report describes the findings of the country study carried out for the design of IFAD project on Restoration of Landscapes and Livelihoods (ROLL P) in Lesotho.

2018 Socioeconomic Survey Report: The Multidimensional Poverty Assessment Tool in The Kingdom of Lesotho

December 2018
This report describes the design, process, and results of the multidimensional socioeconomic survey conducted in 2017 for the Wool and Mohair Promotion Project (as a baseline) and for the Smallholder Agriculture Development Project (as an end term) in the Kingdom of Lesotho.

Related videos

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A day in the life of a vegetable farmer in Lesotho

September 2019 - VIDEO
Thabo Lefatle owns and runs a small vegetable farm in Lesotho’s Mafeteng district, south of the capital Maseru. He is one of 55,000 smallholder farmers in Lesotho who applied for and won public grants.

Lesotho's award-winning chef talks climate change and supporting small farmers

March 2016 - VIDEO
In the high rocky peaks of the African mountain kingdom Lesotho, a female chef has been creating a buzz in international culinary circles by combining ancient traditional recipes from Mosotho elders with fresh local products sourced from smallholder farmers around the remote town of Thaba Tseka.