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Lesotho secures support to ease trade and transit challenges

Business

Staff Reporter
Staff Reporter
Authored by our expert team of writers and editors, with thorough research.

Lesotho and South Africa have pledged to enhance trade cooperation by implementing the World Trade Organisation’s (WTO) Trade Facilitation Agreement (TFA), addressing non-tariff barriers (NTBs), and improving transit arrangements for Lesotho’s access to regional and international markets.

The commitments were made during the second session of the Bi-National Commission (BNC) in Maseru on April 22–23, 2025, co-chaired by Lesotho’s Prime Minister Samuel Ntsokoane Matekane and South Africa’s President Cyril Ramaphosa.

The BNC acknowledged Lesotho’s landlocked status, which makes it reliant on South Africa’s road freight and port infrastructure, particularly Durban and Cape Town, for imports and exports.

“The parties will collaborate to swiftly resolve non-tariff barriers and explore special transit arrangements for products of mutual interest,” the meeting minutes stated, emphasising biosecurity and health considerations.

To advance these goals, the commission directed the ministers of trade and industry to form a team of experts by July 2025. This team will tackle bilateral NTBs and propose transit solutions, including enhanced cooperation on transport corridors to ensure Lesotho’s seamless access to global markets.

As a landlocked country, Lesotho faces unique trade challenges: it relies on South Africa’s ports, primarily Durban (about 600 km from Maseru) and, to a lesser extent, Cape Town and Gqeberha, for maritime trade.

Road freight is the dominant mode of transport, with rail playing a minimal role due to limited infrastructure.

High transport costs, border delays, and regulatory hurdles increase the price of Lesotho’s exports, particularly textiles under the African Growth and Opportunity Act (AGOA), which grants duty-free access to the U.S. market.

The BNC’s focus on transport corridors aligns with regional initiatives like the Maputo Corridor (linking South Africa, Eswatini, and Mozambique) and the Trans-Kalahari Corridor. These corridors aim to streamline logistics and reduce transit times.

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