Unlocking the potential of Lesotho’s private sector : a focus on apparel, horticulture, and ICT (Anglais)

Job creation and private sector growth are at the heart of Lesotho’s development agenda. Indeed, despite continuous economic growth during the past decade, over a quarter of the population is unemployed and more than half lives below the national poverty...  Voir la suite Job creation and private sector growth are at the heart of Lesotho’s development agenda. Indeed, despite continuous economic growth during the past decade, over a quarter of the population is unemployed and more than half lives below the national poverty line. Lesotho’s growth model is driven by public spending, which is dependent on Southern African Customs Union revenues. Strengthening the competitiveness of Lesotho’s traditional industries, such as apparel, as well as developing new, export oriented sectors has long been a government priority. This report aims to fill the knowledge gaps on the characteristics of the private sector and identify growth opportunities in the key sectors of Lesotho’s economy. Specifically, the report aims to: (1) shed light on the characteristics of the private sector, (2) identify opportunities for increasing competitiveness in the apparel and horticulture industries, and (3) discuss mechanisms for using information and communications technology (ICT) more effectively to increase productivity and reduce the costs of regulatory compliance for the private sector. The objective of the report is to inform the World Bank Group’s programs in Lesotho as well as the government’s reform priorities. Sector selection was underpinned by several criteria: (a) potential to create jobs, (b) government priorities, and (c) feasibility to improve sector performance within a relatively short period (within the next five years). Apparel was selected because of its current role in exports and employment as well as its loss of market share in its main export destination, the United States, necessitating the need for better understanding global trends in this industry and developing a strategy for strengthening competitiveness. Agriculture is an important source of livelihoods in Lesotho, where 70 percent of the population lives in rural areas. Transitioning from subsistence cultivation of cereal crops to commercial production of fruits and vegetables can transform the rural economy, improve incomes, and generate new jobs. The report discusses the key constraints to such transformation and identifies interventions to unlock the growth of the sector. Lastly, ICT is an important enabler for private sector competitiveness. All three sectors are prioritized in the upcoming National Strategic Development Plan.  Réduire