FDI, AGOA and Manufactured Exports by a Landlocked, Least Developed African Economy: Lesotho.

Working paper

Lesotho, a resource-poor country located inside South Africa, is now Africa's largest exporter of apparel to the U.S. Its performance, very unusual for Africa, relies heavily on Asian investors and trade privileges. This article traces the origins of FDI in Lesotho and the determinants of its export competitiveness, showing that apparel production suffers from low productivity, poor skills and weak local links. Its prospects after AGOA (the African Growth and Opportunities Act) remain uncertain unless the government addresses these structural problems. Lesotho holds important lessons for industrial development in Africa, going beyond creating a good investment environment.

Authors: Lall, S

• Publisher: QEH (University of Oxford)
• Series: Working Paper Series
• Publication date: 2003-01-01
• Language: English