Repositioning Lesotho’s Youth Employment Strategy through Commonwealth Multilateralism

Theko Tlebere

Youth unemployment in Lesotho is often attributed to lack of job opportunities. However, my studying  in China has traversed me to undertake that the underlying issue is more structural: what I mean is that Lesotho’s economy lacks sufficient tradable activities to accommodate a significant influx of first-time job seekers. Multilateralism, particularly through the Commonwealth, presents a viable mechanism for expediting structural transformation, attracting investment, and expanding sectors that generate employment.

The United Nations defines multilateralism as cooperation among three or more states within a mutually agreed framework of shared rules, norms, and institutions. This enables governments to coordinate policies and undertake collective actions on challenges that cannot be effectively addressed by individual states. In light of this definition, I propose a framework to reposition Lesotho’s youth employment strategy through Commonwealth multilateralism.

A pertinent framework for addressing unemployment in Lesotho is New Structural Economics (NSE). NSE cautions against supporting unviable industries, which may lead to dependency on extensive protection and subsidies, ultimately resulting in political capture and governance challenges. Instead, NSE endorses a “growth identification and facilitation” approach: identifying tradable goods and services that have been successfully produced for approximately 20 years in rapidly developing countries with similar resources but roughly double the per capita income, while removing barriers that prevent domestic firms from upgrading or new firms from entering the market. This approach is particularly relevant for Lesotho as it transitions policy from vague commitments to a targeted, evidence-based pursuit of scalable industries.

Another framework I encountered in China is the “leading dragon phenomenon,” which offers tangible opportunities for these targeted industries. For instance, as wages rise in China, labor-intensive production is progressively relocating to lower-wage economies. Evidence suggests that China employs about 85 million workers in manufacturing; even a 10% reduction in this workforce could result in approximately 8.5 million jobs migrating overseas, potentially including Lesotho, thus facilitating the “jump-start” of industrialization in lower-income countries. This perspective also highlights that the primary challenges in sub-Saharan Africa, limited local entrepreneurial skills and scarce investment capital, can be mitigated through outward foreign direct investment (FDI), thereby promoting the relocation of industries within the Global South.

To effectively leverage Commonwealth multilateralism, Lesotho should strategically attract investments in job-rich light manufacturing and related services. This necessitates a comprehensive strategy. First, the Commonwealth can assist Lesotho in enhancing its soft infrastructure to reduce transaction costs, including the establishment of predictable commercial regulations, transparent licensing, investor grievance mechanisms, and reliable dispute resolution processes. Second, Lesotho can utilize Commonwealth partnerships to develop compliance capabilities such as testing, certification, and quality assurance, enabling local producers to meet buyer standards within Commonwealth-linked value chains. Third, Lesotho can capitalize on the Commonwealth’s convening power to organize investment roadshows and facilitate matchmaking with firms in upgrading economies, focusing on sectors that align with Lesotho’s resource endowments, such as apparel, footwear, simple assembly, and agro-processing, while negotiating performance-based incentives tied to local hiring and training.

Moreover, multilateralism can transform “skills mobility” into a conduit for job creation. Youth unemployment is partly due to a lack of experience. Commonwealth professional networks and scholarship/placement programs can be structured to foster brain circulation by providing short-term placements for young Basotho in higher-productivity firms abroad, with incentives for their return to contribute to domestic supplier development, entrepreneurship support, and public procurement opportunities. This aligns with the NSE concept that latecomers can learn by emulating successful practices from similar countries rather than relying on conjecture.

Finally, Lesotho must connect urban job creation with rural transformation. I have learned that China’s rural reforms illustrate that institutional changes can rapidly enhance productivity: industrial regrouping significantly increased total factor productivity and accounted for approximately half of output growth between 1978 and 1984, supported by price adjustments through input responses. For Lesotho, Commonwealth cooperation can support a similar strategy for productivity and job creation through agricultural research collaborations, irrigation, climate-smart extensions, and export-grade standards. Enhanced farm productivity can strengthen agro-processing small and medium-sized enterprises (SMEs), thereby creating employment opportunities for youth in storage, cold chains, packaging, and transport.

In summary, Lesotho can leverage the Commonwealth to operationalize multilateralism economically by identifying viable, job-creating tradables through the NSE’s identification-and-facilitation approach, capitalizing on the leading-dragon relocation opportunity with investment-ready sites and credible regulations, and aligning industrial upgrading with rural productivity reforms. If executed effectively, this strategy will not only reduce unemployment but also establish a pathway from initial employment to higher skills, increased productivity, and a more resilient economy. The future is NOW!

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