Basotho favour open trade: survey

Findings from the latest Afrobarometer survey shows that Basotho are largely supportive of international trade and political cooperation.

They also welcome the economic and political influence of the Southern African Development Community (SADC), the African Union (AU), China, and the United States. In particular, perceptions that China’s influence on Lesotho is substantial and positive have increased sharply.

The survey further shows that most Basotho endorse open trade, although many would prefer trade with African countries. But only about one in 20 Basotho are aware of the African Continental Free Trade Area (AfCFTA).

Citizens generally express satisfaction with the way Lesotho’s needs and interests are recognised in SADC and AU decision making, but they say African countries need a stronger voice in global platforms like the United Nations.

“Most of Basotho support free trade with the rest of the world. More than two-thirds (69 percent) say it is better for their economy if the government creates economic opportunities by making it easier to trade countries. About 30 percent would instead limit international trade to protect Lesotho businesses.

“Support for open trade is particularly strong among men (72 percent), the most educated citizens (72 percent), and those over age 35 (70 percent-74 percent),” the survey revealed.

The Afrobarometer team in Lesotho, led by Advision Lesotho, interviewed a nationally representative sample of 1,200 adult Basotho in March 2024. A sample of this size yields country-level results with a margin of error of +/-3 percentage points at a 95% confidence level. The results of the survey were released last week.

The survey further noted Lesotho’s heavy reliance on external aid and trade within the Southern African Customs Union (SACU), which supplies nearly half of its government revenue. This dependency renders it vulnerable to fluctuations in trade dynamics, especially trade with South Africa, its largest partner, Afrobarometer pointed out.

“Politically, Lesotho has repeatedly relied on intervention by South Africa and the SADC to maintain peace and stability. Lesotho has long enjoyed friendly relations with China and is a participant in China’s Belt and Road Initiative, most prominently the Chinese-funded Ha Mpiti-Sehlabathebe Road.

“The country ratified the African Continental Free Trade Agreement in 2020. Early this year, with SADC support, Lesotho joined Botswana, Malawi, Mozambique, Namibia, South Africa, and Zambia in implementing a coordinated border management strategy aimed at enhancing border efficiency,” the survey added.

Key findings shows that Basotho are more satisfied than dissatisfied with the way that SADC and the AU recognise Lesotho’s needs and interests in their decision making. But more than two-thirds (68 percent) say African countries should have a greater say in international decision-making bodies like the United Nations.

About seven in 10 citizens (69 percent) prefer free trade over limiting international trade to protect domestic producers. 

While textile exports have been boosted by duty-free access to U.S. markets under the African Growth and Opportunity Act, other exports such as diamonds, water, wool, and mohair play a more substantial role in the nation’s economy, along with remittances from Basotho working abroad, mainly in South Africa.

Experts emphasise the urgent need for fiscal reforms and economic diversification to ensure the country’s long-term economic stability, the survey added.