Abstract

Lesotho is a small independent nation completely surrounded by South Africa. Of its 33000 km 2, 87% is peaks and high mountain pastures, leaving only one km 2 of arable land for each 325 people. Low yields on limited arable land leave the country serious food deficit. Production shortfalls are overcome with large commercial imports and substantial concessional food aid. Commercial imports through retail channels are financed by migrant remittances. Nearly half of the male labour force work in South Africa. Their repatriated wages contribute 40% of gross national income and 63% of rural household income. 1 Thus consumer markets are relatively well monetized and 55% of migrant remittances is spent on food. 2

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