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Lesotho

Kingdom of Lesotho

English, Sesotho Lesotho Loti (LSL) Mixed: Roman-Dutch law, customary law
AU, SADC, SACU, AfCFTA, Commonwealth, WTO

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.

Snapshot

Population~2.4 MWorld Bank, 2025
GDP (current USD)$2.6 BWorld Bank, 2025
GDP per Capita$1,089World Bank, 2025
GDP Growth1.98%World Bank, 2025
Inflation (y/y)~4.27%World Bank, 2025
Unemployment16.32%World Bank, ILO modelled estimate, 2025
Internet Use~51.80%World Bank, 2024
Electrification~50.00%World Bank WDI
CPI Score (Rank)37.0/100 (#99)Transparency Intl
HDI (Rank)0.514 (#168)UNDP HDR

World Bank Indicators Compare with another country

GDP (current USD)$2.6 BWorld Bank, 2025
GDP growth (annual)1.98%World Bank, 2025
GDP per capita (USD)$1,089World Bank, 2025
Population, total2.4 MWorld Bank, 2025
FDI net inflows (USD)-$5.8 MWorld Bank, 2025
Inflation (consumer prices)4.27%World Bank, 2025
Unemployment (% labour force)16.32%World Bank, 2025
Internet use (% of people)51.80%World Bank, 2024
Trade (% of GDP)153.98%World Bank, 2025

Climate Readiness Full ranking

43out of 100
Emerging
Climate adaptation readiness for Lesotho, from 5 of 5 measured indicators.
Energy access5050.0% · 30% weight
Governance readiness3737 / 100 CPI · 20% weight
Human readiness510.514 HDI · 20% weight
Economic readiness35$1,089, 2025 · 15% weight
Digital readiness3535.0% · 15% weight
This scores climate adaptation readiness (adaptive capacity), following the readiness dimension of the ND-GAIN framework. It is built only from measured values already held on this profile and normalised 0-100. It does not measure emissions or physical climate vulnerability: the platform does not yet hold emissions, hazard-exposure or natural-capital series. Energy access is the single most climate-specific indicator held; the other four are governance, economic, human-development and digital readiness proxies. The economic sub-score is relative to the African countries the platform covers.
How this is computed

Adaptive capacity to absorb climate finance and adapt, following the readiness dimension of the ND-GAIN framework. Built only from measured values already held on each country profile. It is not a measure of emissions or physical climate vulnerability, which the platform does not yet hold.

  • Energy access (30%) — World Bank, access to electricity (% of population). The single most climate and energy specific signal held: SDG 7 and the clean-energy transition.
  • Governance readiness (20%) — Transparency International, Corruption Perceptions Index (0-100). ND-GAIN governance readiness: the capacity to govern and deploy climate finance. Higher is cleaner.
  • Human readiness (20%) — UNDP, Human Development Index (0-1). ND-GAIN social readiness: the adaptive capacity of the population.
  • Economic readiness (15%) — World Bank, GDP per capita (current US$), latest measured year. ND-GAIN economic readiness: the capacity to finance adaptation. Scored relative to the covered set.
  • Digital readiness (15%) — World Bank, individuals using the Internet (% of population). Information systems for early warning and adaptation.

A country is scored only when at least 4 of the five indicators are held. Sub-scores are weighted and renormalised over the indicators that are present; nothing is estimated for one that is absent.

Country Facts

CapitalMaseru
RegionSouthern Africa
CurrencyLesotho Loti (LSL)
FX RegimeFixed peg to ZAR (LSL = ZAR at par)
Legal SystemMixed: Roman-Dutch law, customary law
Time ZoneAfrica/Maseru

Focus Sectors

Textiles & Garments (AGOA)
Diamonds
Water (LHWP)
Agriculture
Livestock
Construction
Tourism
Telecoms

Regulations & Taxes

Corporate Income Tax25% standard (10% manufacturing)
VAT / Sales Tax15% standard