Overview
The Government of the Kingdom of Lesotho (GOKL) identified agriculture as one of the productive sectors for job creation and poverty reduction under its 2018-2023 National Strategic Development Plan.
Roughly 80 percent of Lesotho’s population depends on subsistent agriculture for their livelihoods. Agriculture’s contribution to Gross Domestic Product (GDP) has declined over the last five years. However, there is potential for commercial agriculture.
Approximately 75 percent of the total land area is suitable for agricultural production. The country’s irrigation potential is estimated at 112, 500 ha, yet just over 20 percent of the farmers are equipped for irrigation. Major crops include maize, wheat, sorghum, potato, beans, peas, cabbage, and tomatoes. Rearing of cattle, sheep, goats, and pigs is also common. There are opportunities in aquaculture, horticulture, and poultry farming. The Lesotho National Development Corporation (LNDC) aligned its strategic plan with that of the government and conducted research on horticulture which confirmed Lesotho’s potential for producing high value cash crops such as mushrooms, asparagus, beans, peas, spinach, tomatoes, and potatoes. LNDC also confirmed the EU as a reliable market for these products.
Aquaculture
Lesotho has a potential for aquaculture development as the result of the Katse Dam and Mohale Dam constructed under the Lesotho Highlands Water Project (LHWP) and current construction of Polohali Dam will further boost the potential. According to feasibility studies, the water in the existing dams offers near perfect climatic and environmental conditions for trout production. As a result, two trout farms, Katse Fish Farm (KFF) and Sanlei Premium Trout Lesotho (SPTL) operate at Katse Dam. KFF is licensed to produce 1,200 tons/annum, whereas SPTL is licensed to produce 2,500 tons/annum. KFF exports primarily to food service outlets in Southern Africa. SPTL exports primarily to Japan. Related opportunities include processing and packaging operations, filleting, trimming and smoking, and extraction of omega oils.
Horticulture
The horticulture sector is growing in Lesotho and drawing an increased focus after the implementation of the World Bank-supported Private Sector Competitiveness (PSC) project. The project has two sub-components: the production of vegetables and the production of fruit trees, specifically apples and cherries. Two South African companies, Alpha Farms and Denmar Estates, have partnered with farmers in Lesotho to produce for the Lesotho, South Africa, and EU markets. Due to the country’s elevation, good soil, and abundance of water, the quality of the produce is good, and the fruits ripen earlier than in other countries in the southern hemisphere, offering an opportunity to supply the regional market early in the season. In addition, Lesotho’s climate is good for mushroom farming, and the kind of mushrooms produced in Lesotho is in high demand in South Africa, Botswana, and other southern African countries. Lesotho currently does not have processing and packing facilities for these products, so another opportunity exists in food processing.
Commercial Poultry and Farming
Eggs and chickens are major sources of protein consumed in Lesotho, but the poultry industry is relatively under-developed. Most poultry farmers are subsistence farmers, and their capacity is too low to supply the whole country. There is only one hatchery producing day old chicks but it does not meet market demand; the gap is met by South African imports. There is a need for a fully integrated poultry industry from hatchery to market, including hatcheries, farms, and a slaughterhouse. The National University of Lesotho innovation hub has plans to produce 40,000 chickens per month over the next two to three years. It also aims to develop an abattoir for local commercial products. There are opportunities for U.S. companies to establish a fully integrated poultry farming operation in Lesotho or to supply poultry farming equipment such as incubators, chemicals, and slaughterhouse equipment