Foreign direct investment, entrepreneurship and development in Lesotho

Abstract

Lesotho is listed among the poor countries in the world. The country is dependent on South Africa for its tradable goods and employment opportunities. Most of the manufactured goods, foodstuffs and other consumer goods are imported from South Africa. Many Basotho are also employed in the South African mines, plantations and industries. However, recent studies show that starting from the 1990s many Basotho men are retrenched from the South African mines in large numbers thus aggravating the existing unemployment in the country. Migration of Basotho into South Africa for employment opportunities has taken a different phase in the recently years. There is a growing phenomenon of Basotho women migrating illegally into South Africa in search of employment opportunities as domestic workers. Lack of employment opportunities and manufactured goods in Lesotho shows that entrepreneurship is lacking among Basotho. However, studies indicate that weaving enterprises were established to create employment opportunities for many people. In addition, Lesotho National Development Corporation was established to attract foreign investors into the country.