Kingdom of Lesotho

Lesotho is one of the poorest countries
in Southern Africa, and has one of the highest income
inequality in the world. Home to about 2 million people,
Lesotho is surrounded by South Africa, the second largest
and most industrialized economy in Africa. Lesotho generates
income mainly by exporting textiles, water, and diamonds,
and is a member of the Southern African Customs Union
(SACU), the Southern African Development Community (SADC),
and the Common Monetary Area (CMA). The national currency,
the loti, is pegged to the South African rand.
Lesotho's main trading partners are South Africa and
the United States. The CPF will seek to mitigate four
substantial risks to the implementation of the WBG program:
(a) political and governance; (b) macroeconomic; (c) climate
change and climate- induced disasters; and (d) operating
risks (capacity and fiduciary). The lessons from the Country
Assistance Strategy Completion and Learning Report (CPS CLR)
will play an important role in addressing these risks. The
CPF will give high importance to quality and risks at entry
for new operations, and continue strong monitoring and
supervision. These mitigation factors are essential for
achieving sustainable results.