Lesotho

Lesotho is a small, mountainous kingdom entirely surrounded by South Africa. The economy depends on the textile and garment industry (benefiting from AGOA duty-free access to the US market), diamond mining (Letseng mine, famous for producing some of the world's most valuable diamonds), water exports to South Africa through the Lesotho Highlands Water Project (LHWP), and remittances from Basotho workers in South African mines. Challenges include high unemployment, HIV/AIDS prevalence, and political instability with frequent changes in government.