Lesotho Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in lesotho, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Agricultural Sector
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The Government of the Kingdom of Lesotho (GOKL) identified agriculture as one of the productive sectors for job creation and poverty reduction under its 2018-2023-2027-28 National Strategic Development Plan (NSDP) II. Roughly 80 percent of Lesotho’s population depends on subsistent agriculture for their livelihoods. Agriculture’s contribution to Gross Domestic Product (GDP), estimated at 10 percent, has declined since 2020.  Opportunities for commercial agriculture, however, are available. 

Approximately 75 percent of the total land area is suitable for agricultural production. The country’s irrigation potential is estimated at 112,500 ha, yet just over 20 percent of the farmers are equipped for irrigation. Major crops include maize, wheat, sorghum, potato, beans, peas, cabbage, and tomatoes. Rearing of cattle, sheep, goats, and pigs is also common.  There are opportunities in aquaculture, horticulture, and poultry farming. The LNDC has aligned its strategic plan with the GOKL strategic plan and highlights Lesotho’s potential for producing high value cash crops such as mushrooms, asparagus, beans, peas, spinach, tomatoes, apples, peaches, cabbage, onions, and potatoes. Lesotho’s soil is also suitable for growing herbs, thyme, and mint which could be sold fresh or processed into dried herbs which could be, essential teas, oils or natural products. There is also potential to grow medicinal plants like aloe vera, lavender, and chamomile which could be processed into cosmetics, teas, or supplements. Lesotho imported a high volume of grains estimated at 236,000 tons in 2024 with maize and wheat imports remaining the largest. This could present an opportunity for U.S. businesses.  

Aquaculture

Lesotho has potential for aquaculture development as the result of the Katse Dam and Mohale Dam constructed under the Lesotho Highlands Water Project (LHWP) and current construction of the Polihali Dam will further boost potential. According to feasibility studies, the water in the existing dams offers near perfect climatic and environmental conditions for trout production. As a result, two trout farms, Katse Fish Farm (KFF) and Sanlei Premium Trout Lesotho (SPTL) operate at Katse Dam.  KFF is licensed to produce 1,200 tons/annum, whereas SPTL is licensed to produce 2,500 tons/annum.  KFF exports primarily to food service outlets in Southern Africa. SPTL exports primarily to Japan and to the United States under AGOA. Related opportunities include processing and packaging operations, filleting, trimming and smoking, and extraction of omega oils. There is an emerging demand for organic fish farming within the region in countries including Zimbabwe, Botswana, and Mozambique which U.S. businesses can take advantage off. Lesotho’s fish exports could also penetrate EU and Middle Eastern markets.

Horticulture

The horticulture sector is growing and drawing increased focus after implementation of the World Bank-supported Private Sector Competitiveness (PSC) project.  The project has two sub-components: production of vegetables and fruit trees, specifically apples and cherries. Two South African companies, Alpha Farms and Denmar Estates, have partnered with farmers in Lesotho to produce for the Lesotho, South Africa, and EU markets.  Due to the country’s elevation, good soil, and abundance of water, the quality of the produce is high, and fruits ripen earlier than in other countries in the southern hemisphere, offering an opportunity to supply the regional market early in the season. In addition, Lesotho’s climate is good for mushroom farming, which are in high demand in South Africa, Botswana, and other southern African countries. Lesotho currently does not have processing and packing facilities for these products, so another opportunity exists in food packing and processing. 

Commercial Poultry and Farming

Eggs and chickens are major sources of protein consumption in Lesotho, but the poultry industry is under-developed. Most poultry farmers are subsistence farmers and their capacity is too low to supply the whole country. Only one hatchery produces day old chicks, but it does not meet market demand; the gap is met by South African imports. There is a need for a fully integrated poultry industry from hatchery to market, including hatcheries, farms, and a slaughterhouse. The National University of Lesotho innovation hub has plans to produce 40,000 chickens per month over the next two to three years. It also aims to develop an abattoir for local commercial products. There are opportunities for U.S. companies to establish a fully integrated poultry farming operation in Lesotho or to supply poultry farming equipment such as incubators, chemicals, and slaughterhouse equipment.  

Sub -Sector Best Prospects

  • Broiler and layer production
  • Feed mills
  • Hatcherie
  • Abattoirs and cold chains
  • Processing
  • Packing and branding