Lesotho

Lesotho is a small, mountainous kingdom entirely surrounded by South Africa, on which its economy heavily depends, with many citizens working across the border and a large share of income from remittances.

Its economy rests on water exported to South Africa, a garment industry built on trade access to the US, and remittances, leaving it vulnerable to its giant neighbor's fortunes.

Key Sectors

The economy rests on water exports to South Africa (via the Highlands Water Project), textiles and garments, diamonds, remittances, and subsistence agriculture and herding.