chief of mission: Ambassador Robert NOLAN embassy: 254 Kingsway, Maseru West (Consular Section) mailing address: P. O. Box 333, Maseru 100, Lesotho telephone: [266] 22 312666 FAX: [266] 22 310116
Flag description:
three horizontal stripes of blue (top), white, and green in the proportions of 3:4:3; the colors represent rain, peace, and prosperity respectively; centered in the white stripe is a black Basotho hat representing the indigenous people; the flag was unfurled in October 2006 to celebrate 40 years of independence
Economy
Lesotho
Economy - overview:
Small, landlocked, and mountainous, Lesotho relies on remittances from miners employed in South Africa and customs duties from the Southern Africa Customs Union for the majority of government revenue. However, the government has recently strengthened its tax system to reduce dependency on customs duties. Completion of a major hydropower facility in January 1998 permitted the sale of water to South Africa and generated royalties for Lesotho. Lesotho produces about 90% of its own electrical power needs. As the number of mineworkers has declined steadily over the past several years, a small manufacturing base has developed based on farm products that support the milling, canning, leather, and jute industries, as well as a rapidly expanding apparel-assembly sector. The latter has grown significantly mainly due to Lesotho qualifying for the trade benefits contained in the Africa Growth and Opportunity Act. The economy is still primarily based on subsistence agriculture, especially livestock, although drought has decreased agricultural activity. The extreme inequality in the distribution of income remains a major drawback. Lesotho has signed an Interim Poverty Reduction and Growth Facility with the IMF. In July 2007, Lesotho signed a Millennium Challenge Account Compact with the US worth $362.5 million.
GDP (purchasing power parity):
$3.063 billion (2007 est.)
GDP (official exchange rate):
$1.6 billion (2007 est.)