Investment opportunities for South African business abound in the under-developed mountain kingdom of Lesotho, the South African-Lesotho business forum heard on Wednesday.
Lesotho Prime Minister Phakalitha Mosisili told the forum the challenge was to see the opportunities available and ”make good use of them while they last”.
His country’s economy was inextricably intertwined with that of South Africa, because of Lesotho’s geographical position.
The two countries were also bound by similar histories and culture.
Opportunities were abundant for joint business ventures, with Lesotho’s economy having undergone tremendous transformation over the past decade.
In the decade after 1997, the economy grew at an unprecedented rate of about 6%, mainly due to the massive Lesotho Highlands Water Project, the flagship of cooperation efforts between the two countries, he said.
Lesotho’s construction industry had grown by billions to account for 23% of GDP to date.
This was no small achievement, considering that in most countries this sector accounted for less than 10% of GDP.
The country’s textile and clothing industry had mushroomed and now accounted for 15% of GDP, against less than 10% 15 years ago.
The industry employed about 46 000 workers, up from 26 000 in 2001.
”And, indeed, has surpassed the government as the largest employer in the country,” Mosisili said.
Deputy President Phumzile Mlambo-Ngcuka agreed the two countries’ relations were intricately interwoven to the extent ”we live in each other’s stomachs”.
Business opportunities, notably in tourism, remained largely unexploited, and there were great opportunities to build on existing ”linkages”.
South Africa’s hosting of the 2010 Soccer World Cup also held great benefits and presented vast opportunities for Lesotho, especially in small business, because of its proximity, Mlambo-Ngcuka said. — Sapa