Title: Foreign direct investment, entrepreneurship and development in Lesotho

Authors: Tšepiso A. Rantšo

Addresses: Department of Development Studies, National University of Lesotho, P.O. Roma 180, Lesotho

Abstract: Lesotho is listed among the poor countries in the world. The country is dependent on South Africa for its tradable goods and employment opportunities. Most of the manufactured goods, foodstuffs and other consumer goods are imported from South Africa. Many Basotho are also employed in the South African mines, plantations and industries. However, recent studies show that starting from the 1990s many Basotho men are retrenched from the South African mines in large numbers thus aggravating the existing unemployment in the country. Migration of Basotho into South Africa for employment opportunities has taken a different phase in the recently years. There is a growing phenomenon of Basotho women migrating illegally into South Africa in search of employment opportunities as domestic workers. Lack of employment opportunities and manufactured goods in Lesotho shows that entrepreneurship is lacking among Basotho. However, studies indicate that weaving enterprises were established to create employment opportunities for many people. In addition, Lesotho National Development Corporation was established to attract foreign investors into the country.

Keywords: foreign direct investment; FDI; technological spillover; skills; employment creation; AGOA; African Growth and Opportunity Act; clothing industry; garment industry; apparel industry; weaving enterprises; entrepreneurship; economic development; Lesotho.

DOI: 10.1504/WREMSD.2017.084984

World Review of Entrepreneurship, Management and Sustainable Development, 2017 Vol.13 No.4, pp.373 - 388

Received: 06 Apr 2015
Accepted: 06 Apr 2015

Published online: 27 Mar 2017 *

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