Agrinvest Lesotho: Catalyzing Investment for Transformative Agricultural Value Chain Development - TCP/LES/3802
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Over the past 30 years, Lesotho’s economy has changed significantly from being dominated by agriculture and government services to being dominated by manufacturing and retail. Even though agriculture’s contribution to gross domestic product has decreased from 15 percent to no less than 8 percent, the sector remains of great importance to supporting rural economy and livelihoods for around 60 percent of the population. These rural communities base their livelihoods on traditional, rainfed cereal production and extensive overgrazing. As part of the national efforts to balance the situation and protect agricultural systems and livelihoods, Lesotho developed the National Strategic Development Plan II (NSDP II), encompassing some policy targets to transform the economy from a consumer-driven to a producer-based economy led by the private sector. However, the NSDP II highlighted several gaps about inclusive growth and sustainable development, such as i) the lack of commercialization and diversification of small-scale producers, ii) the exclusion of smallholder rural communities from the mainstream economy, and iii) the absence of an enabling environment for the private sector to conduct business with unorganized farmers. Furthermore, the development of the country’s agrifood systems were placed at heart of any strategy to deliver employment and entrepreneurship opportunities for young people in both rural and urban areas.