Economy of Lesotho

Lesotho is small, landlocked, mountainous and surrounded by South Africa. As such, its economy is thoroughly integrated with that of its larger neighbour.

Corn, sorghum, beans, peas, and wheat are farmed commercially in Lesotho, though only about 10% of the country's land is arable.

Most households in Lesotho subsist through farming and by the wages of migrant labourers who work in South Africa, mostly in the mines (these wages supplement domestic income by up to 45%).

Water is Lesotho's only great natural resource, and one in which it is very rich, especially when compared with its water-starved neighbours. Water exporting and hydro-electric power schemes to South Africa are Lesotho's major sources of economic growth.

Food and beverages, textiles and clothing industries also feature in Lesotho, along with an important tourism sector. Lesotho is a member of the South African Development Community.

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