Overview
Roughly 80% of Lesotho’s population depends on the agricultural sector for their livelihoods. In recent years, the government embarked on a block farming program to increase production through subsidies and central planning. Despite flagging agricultural production, the government plans to continue these subsidy programs to combat hunger and poverty. Although the government has not been actively seeking investors in the agriculture sector, there are opportunities in aquaculture, horticulture, and poultry farming. In recent years, Lesotho’s economic performance has been negatively affected by sluggish global economic growth amid a major downturn in both emerging markets and advanced economies. Furthermore, sustained political instability in the country, coupled with slow economic growth in the South African economy, also contributed to slow economic performance. Real GDP growth rate is estimated to have averaged 1.6% between 2015–2019 and it is projected to average 0.6% between 2019–2021, largely attributed to the expected negative impact of COVID-19 (coronavirus)[1].
Lesotho’s main food crops produced include maize, sorghum (for food and beer), and wheat. Maize and sorghum are grown throughout the country in summer (October to April), with the most productive areas in the Lowlands and Foothills. Winter wheat is common in the Mountains (May to September). Currently, over 70 percent of the national cereal requirements are imported, mainly from South Africa, and most of the population (the poor) purchases more than half of their food in a typical year. As a result, the national strategy for food security emphasizes in ensuring adequate food imports to cover the deficit. The country has introduced measures to increase household incomes to guarantee their access to food, and improvement of agricultural production Several rivers in the country have potential to support irrigation in the Country, however less land is under irrigation by small scale farmers. The option of utilising the water for farming is still not fully utilised.
Additional information can be located from sources which are regularly maintained and reflect current facts and figures. For more specific and detailed overviews of food availability and market conditions, please consult the following sources:
WFP Vulnerability and Analysis Mapping (VAM): https://dataviz.vam.wfp.org/Hunger-Analytics-Hub
USAID Famine Early Warning Systems Network (FEWS NET): https://fews.net/southern-africa/lesotho
For more information on food supplier contact details, please see the following link: 4.10 Supplier Contact List.
Retail Sector
Lesotho has huge predominance of micro-enterprises in the SME sector. The vast majority of are micro-enterprises. Seventy percent of businesses are micro-enterprises (with two employees or less). One third of micro-enterprises businesses have no employees at all other than the owner. Twenty three percent of enterprises in the small businesses have 3 to 9 employees. Seven percent were of medium size, with between ten and 50 employees. Eighty percent of small businesses employ no more than three people – including the business owner. The turnover as well as employee numbers. Eighty percent of businesses have annual turnover below M200 000. In fact, almost a quarter of respondents reported annual turnover of under M10 000 per annum – which is very low indeed. Less than four percent reported turnover above M1 million, and less than one percent reported turnover above M5 million. The very large majority of small businesses are survivalists and may have limited potential for growth and expansion[2]. Vast majority of the retailers in Lesotho purchase their stocks from Chinese supermarkets. Since that retailers are competing with Chinese retailers most of the retailers go bankrupt due to unavailability of customers.
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Types of Retailers Available |
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|---|---|
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Type of Retailer |
Rank (1-5) |
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Supermarket – concentrates mainly in supplying a range of food, beverage, cleaning and sanitation products; have significant purchasing power; are often part of national/regional/global chains. |
3 |
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Convenience Store/Mini Market – medium sized shop; offers a more limited range of products than supermarkets; usually has good/stable purchasing power; may be part of chain or cooperative. |
3 |
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Permanent shop with strong supply capacity – individually/family owned store; usually offers fewer commodities and a limited selection of brands; good storage and reliable supply options. |
5 |
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Permanent shop with limited supply capacity – individually/family owned store; offers fewer commodities and a limited selection of brands; limited storage and unstable supply options. |
5 |
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Mobile Shop/Market Stand – individually/family owned store; usually offers fewer commodities and a limited selection of brands; may be found at outdoor markets, camps or unstable environments. |
2 |
Wholesale – Browns Cash & Carry
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Supplier Overview |
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|---|---|
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Company Name |
Wholesale – MASERU CASH AND CARRY (INC IN LESOTHO) |
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Address |
Raboshabane Rd Opposite Ministry Of Works, Industrial Area, P.O.Box 4018, Maseru, Lesotho |
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Does the supplier have its own production / manufacturing capacity? |
NO |
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Does the supplier have its own retail capacity? |
No |
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Does the supplier have its own transport capacity? |
No |
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Does the supplier have its own storage facilities? |
Yes |
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Approximate Turnover in MT |
Not available |
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Payment Methods Accepted |
Debit/Cash/Credit |
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Other Comments or Key Information |
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Other Locations |
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|---|---|
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Region(s) |
Service Location(s) |
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Maseru |
Industrial Area |
Wholesaler – Ntjamoatle Trading PTY LTD
Ntjamoatle has been active since 1999 with their main area of business is in the Mokhotlong District while they receive their stock from the Lesotho flour Mills in Maseru and from imports from manufacturers in South Africa. They are members of the Mokhotlong Traders Association.
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Supplier Overview |
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|---|---|
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Company Name |
Ntja-mokoatle Trading PTY LTD |
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Address |
Mohotlong, Lesotho |
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Does the supplier have its own production / manufacturing capacity? |
NO |
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Does the supplier have its own retail capacity? |
Yes |
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Does the supplier have its own transport capacity? |
Yes |
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Does the supplier have its own storage facilities? |
Yes about 200m2 |
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Approximate Turnover in MT |
Not available |
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Payment Methods Accepted |
Debit/Cash/Credit |
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Other Comments or Key Information |
They are one of two biggest suppliers of Maize meal and Bread flour in the district. |
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Primary Goods / Commodities Available |
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|---|---|---|
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Commodities by Type** (SITC Rev 4 Division Code - Title) |
Comments |
|
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00 - Live animals (other than fish, crustaceans, molluscs, etc.) |
i.e. sheep and goats, swine, poultry… |
Locally produced and imported |
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01 - Meat and meat preparations |
i.e meat of bovine animals, meat of sheep, dried or smoked meat of swine, sausages… |
Locally produced and imported |
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02 - Dairy products and birds’ eggs |
i.e. milk, yogurt, butter, cheese, eggs… |
Locally produced and imported |
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03 - Fish (not marine mammals), crustaceans, molluscs… |
i.e. fish (chilled or frozen), fish (salted or in brine), fish liver and roes… |
Locally produced(trout) and imported |
|
04 - Cereals and cereal preparations |
i.e. wheat, rice, flour of maize, pasta... |
Locally produced and imported |
|
05 - Vegetables and fruit |
i.e. vegetables, fruit and nuts, jams/jellies, fruit juices… |
Locally produced and imported |
|
06 - Sugars, sugar preparations and honey |
i.e. sugars (beet or cane) raw, natural honey, fruit/nuts preserved by sugar … |
Packed and imported |
|
07 - Coffee, tea, cocoa, spices and manufactures thereof |
i.e. coffee, cocoa, chocolate, tea, mate, pepper… |
imports |
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09 - Miscellaneous edible products and preparations |
i.e. ready-to-eat foods, margarine, sauces, soups and broths, yeasts… |
imports |
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41 - Animal oils and fats |
i.e. lard, fats and oils… |
imports |
|
42/43 - Fixed vegetable fats and oils, crude, refined or fractionated |
i.e. soya bean oil, olive oil, maize oil, vegetable oil… |
imports |
**For non-FOOD products please see section 3.5.2 Additional Suppliers, and for FUEL/PETROLEUM products please see section 3.1 Fuel.
Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service providers.
[1] https://www.worldbank.org/en/country/lesotho/overview
[2] FINAL_Lesotho_State_of_Small_Enterprise_Survey_23_10_08
