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Integrated SDG Insights

Lesotho

UNDP’s Integrated SDG Insights explore how to achieve the SDGs by 2030. So that no one is left behind.

How To Read This Report

‘SDG Insights’ playbooks transcend development “as usual,” and leverages data innovation, AI and systems analysis to chart credible pathways that help countries meet the 2030 Agenda.

SDG Moment This section provides an overview of a country's economic growth trajectory, with new insights on sustainability and inclusiveness of growth pathways.

SDG Trends & Priorities This section builds from the foundation of national SDG progress and uses machine learning to analyse national development ambition with an SDG lens.

SDG Interlinkages Combined, these insights are mapped against SDG interlinkages to define policy choices the accelerate SDG progress, tailored to national context.

Finance & StimulusThese policy choices are made against fiscal constraints and opportunities for stimulus mapped in this section to ensure choices translate to development impact and leave no one behind.

1. SDG Moment

While economic growth is a key element in achieving the SDGs, many countries are intent on moving beyond growth as a yardstick for progress. In the short run, growth enables the SDGs; but in the long run, the SDGs aim to transform the pattern of growth itself.

GDP Growth Pathways

People

Poverty: Percentage of the population under each threshold (PPP$ a day).

Data not available.

Planet

Carbon Intensity: CO2 emissions intensity of GDP (tCO2 per PPP $1,000).

Lesotho’s economy is projected to be in mitigation phase in 2023-2025. This pace of growth is characterized by being 20% lower, on average, than the global figure, but already above the country’s growth trajectory forecast before the pandemic.

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This moderate pace of economic growth is not projected to exert a large impact on poverty reduction at $2.15 and $3.65 a day due to the negative impact of higher food and energy prices and climate shocks on low-income households. Hence, the country’s commitments to achieving the SDGs should focus on inclusive and sustainable growth, increasing employment and eradicating poverty. Yet this growth cycle would be somewhat less dependent on carbon emissions from fossil fuels as the country's emissions intensity of GDP is projected to decrease at an annual rate of 1.6%.

3. SDG Interlinkages

Maps synergies and trade-offs of national priorities to the most relevant SDG targets to chart policy pathways with most potential to accelerate progress.

5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.

Despite the 95% female literacy rate, the implementation of gender protocols, mainstreaming of national policies, quotas and the adoption of a political party zipper/zebra list – women earn only 30.9% of the national income; women make up only 26.6 % of the members of parliament and female ministers constitute only 22% of the total number of ministers.

Gender representation is a concern in Lesotho because gender inequality still disadvantages women over men in all socio-economic and political spheres. Patriarchy, cultural norms, customs, religious practices and both normative and structural discriminatory practices are usually the main factors that perpetuate gender inequality and impede the empowerment, most notably of women and girls. Gender-based violence is high and is recognized as one of the drivers for HIV, especially among women and girls, and as a threat to national development.

To address this, it is essential to prioritize policies that address gender gaps in human capital, economic opportunities, ownership and control of assets  and women’s voice and agency.  Lesotho’s  National Gender and Development Policy (2018–2030)  and the second National Strategic Development Plan (2018–2023) emphasize the need for integrated approaches to promote gender equality and women’s empowerment and to create greater opportunities, especially for young people.  

Furthermore, an inclusive, adaptive and shock-responsive social protection programme (targeting women and people with disabilities) and leveraging the potential of the digital can empower women by enabling them to succeed in the future of work, by giving them  access to essential digital services, including those for education and health care, and by increasing their civic and political engagement.

8.5: By 2030 achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value

Lesotho ranks as one of the world’s most unequal countries (Gini coefficient of 44.9 in 2017). The national unemployment rate was 22.5 percent (strict definition) and 38.3 percent in 2019 (expanded definition to include discouraged job seekers) with youth unemployment at 29.1 percent. Supporting the participation of micro, small, and medium enterprises (MSMEs); investing in agriculture and nature-based initiatives and the textile industry that is highly reliant on functional global value chains and provides employment to the poor, especially women – these are key actions to reduce poverty and inequality. It also requires strengthening the skills and employability of the youth while ensuring a gender-nuanced approaches.

By investing in SDG 8 (Decent work and economic growth), Lesotho can improve on current employment challenges and move the needle on key priorities around the eradication of poverty, zero hunger, improved health care and educationProgress on Target 8.5 will benefit from advancements in closing key infrastructure gaps, specifically in electricity, sustainable and safe road connectivity and ICT and also  in promoting access to clean energy.  These actions will progressively help to address and overcome inequalities in Lesotho.

9.1: Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all​

Infrastructure development has a significant impact on efforts to address existing inequalities and poverty and ensure economic competitiveness in Lesotho. Economic diversification has proven to be challenging due to limited road infrastructure networks (62 percent) and inadequate access to affordable and reliable infrastructure, such as electricity (38.7 percent),  water, transport and internet connectivity (48 percent). 

The industrial sector in Lesotho sector is largely concentrated in two spheres, textile/apparel manufacturing and mining. To spur industrialization and economic diversification, the government is encouraging domestic and foreign investment in agriculture, manufacturing, technology/innovation and tourism/creative industries to drive shared economic growth. Increasing access to renewable energy and expanding road networks will unlock economic growth opportunities in these sectors, catalyse rural development, facilitate economic transformation by integrating the MSMEs into the formal economy  and lead to the adoption of green and digital technologies in development.

By investing in SDG 9.1 (Industry, Infrastructure and Innovation), Lesotho can improve on current employment challenges and focus on key priorities around eradicating poverty, reducing inequality, improving the business environment, facilitating industrialization, private sector investment and regional integration. This is complemented by several public digital infrastructure development and construction-related projects, including Phase II of the Lesotho Highlands Water Project, which will augment hydropower generation capacity of the country and open opportunities for catalysing investments and for reducing unemployment.

10.1: By 2030 progressively achieve and sustain income growth of the bottom 40% of the population at a rate higher than the national average

Lesotho ranks as one of the world’s most unequal countries (Gini coefficient of 44.9 in 2017). Gender, place of birth, parents’ education, health and exposure to environmental shocks explain almost half (46 percent) the level of inequality. Low intergenerational mobility and the large gaps between rural and urban areas further exacerbate inequities.

Lesotho may consider tackling issues that contribute to inequality and that inhibit shared prosperity by supporting investment and equitable access in the following areas: in quality early childhood development; junior secondary education and health services; strengthening efficiency in health delivery systems for improved services; strengthening the social protection system to help build the resilience of poor households and of persons with disabilities; and enabling both to invest in their children’s health and education and to prepare themselves to cope with future shocks.

16.6: Develop effective, accountable and transparent institutions at all levels

In Lesotho, around 52 percent of the population are satisfied with the public service received. By focusing on SDG 16 (Peace, justice and strong institutions) and, in particular Target 16.6, measures can be a booster shot needed to promote inclusive economic growth, ensure quality and effective and equitable access to public services to the poor

Investing in SDG 16 will also inject the necessary momentum toward the ongoing governance and economic reforms. This means that Lesotho could set a higher target with for example the percent of the population satisfied with public services received, public participation  and political stability. When this happens, it will have a positive multiplier effect on other SDGs, and address Lesotho’s development priorities for reducing poverty and promoting inclusive and sustainable economic growth.

15.1: By 2020, ensure the conservation, restoration and sustainableuse of terrestrial and inland freshwater ecosystems and their services.

By prioritizing Target 15.1 in its 2021-2025 National Development Plan, Ecuadorreaffirmed the significance of protecting and preserving terrestrial ecosystems andtheir biodiversity. This includes recognizing that the investment projects intendedto fulfil Target 15.1 will not only contribute to achieving the SDGs 13, 14 and 15, butwill also help restore ecosystems that underpin the availability and comprehensivemanagement of water resources (SDG 6) and promote their sustainable use (Target12.2). Additionally, it will also foster the generation of new energy from renewablesources (Target 7.2).

To this end, Ecuador seeks to strengthen the management of the National Systemof Protected Areas through its 2022-2032 Strategic Plan and the implementationof the National Forest Restoration Plan 2019-2030. These instruments serve as thetechnical, legal and financial foundation for executing local forest restorationprocesses with a landscape vision, with an overall goal of covering 30,000hectares through its projects. Considering that the proportion of national territoryunder conservation or environmental management, as of 2022, stands at 22.1%, itis necessary to mobilize additional financial resources from various sources andestablish robust governance (Target 17.3) to intensify the care of protected areas.This ensures the conservation of natural and cultural resources, genetic flows, theprovision of environmental services for the benefit of the population and thealignment of policies on the ground.

Futures Scenarios

SDG Push is a futures scenario based on 48 integrated accelerators in the areas of Governance, Social Protection, Green Economy and Digital Disruption. It uses national data to explore the impact on human development by 2030 and 2050 across key SDG indicators. It does this by using ‘International Futures,’ a systems model designed to explore interactions across development systems.

Poverty <$1.90 Per Day (Number of People)

Malnourished Children Under 5 (Number Of Children)

Malnourished Children Under 5 (Number Of Children)

4. Finance and Stimulus

Many countries are facing reduced fiscal space, high debt levels, rising interest rates and downgrades on credit ratings. Fiscal and financial constraints tend to slow or even reverse SDG progress.

Lesotho's gross government debt is projected at 58.5% of GDP in 2023, which is about 10 percentage points (pp) above the low-income developing countries’ (LIDC) average of 48.3%. The country is projected to collect 51% of GDP in revenue this year, thus more than 36 pp above the LIDC average of 14.9%. Lesotho’s public external debt servicing this year is projected to reach 6.2% of revenue, which is less than half the LIDC average of 14.1%. Due to increasing public expenditure and new borrowing, the latest World Bank and IMF DSA from June 2022 rates the country at ‘moderate risk of debt distress’.

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Lesotho has developed an Integrated National Financing Framework (INFF) road map to address key fiscal and financial constraints and to build a more sustainable financial architecture at the national level. Priority actions include the incremental digitalization of tax administration for all types of tax payers, taxes and tax enforcement; developing a new Public Debt Management Act for better debt management; the centralization of public investment projects and monitoring with better interdepartmental coordination; the introduction by the central bank of lending targets for small and medium enterprises in the banking sector; establishing interactive investment platforms and forums, mobilizing private sector participation; and exploring tools for diaspora investment in the SDGs (including diaspora mutual funds, diaspora bonds, crowdfunding, tailor-made investment packages).

SDG Stimulus

The UN Secretary General’s SDG Stimulus Plan lays out a blueprint for action within the existing financial architecture. It includes:

  • Providing liquidity to support recovery in the near term
  • Enhance debt relief for vulnerable countries.​
  • Expanding development financing by MDBs
  • Align financial flows with the SDGs and Paris Agreement, according to country-level priorities and needs, for example through the rollout of the UN Integrated National Financing Framework (INFFs).

Given the projected fiscal and financial constraints faced by

Lesotho

possible funding options for the investments derived from the identified interlinkages are as follows:

  • Tax and revenue reform
  • Tax for the SDGs
  • Debt for SDGs
  • Climate finance
  • Blended and public-private finance
  • SDG-aligned business environment and investment
  • Accessing financial markets and insurance
  • Remittances, philanthropy and faith-based financing

Methodology & Data Sources

Click here to view the Methodological Note for the Integrated SDG Insights.

This report is the result of a global exercise carried out using artificial intelligence to identify SDG priorities based on 10 national government documents, together with SDG progress and SDG interlinkage analysis. The implementation and monitoring of the 2030 Agenda in Argentina should be consulted in the Country Reports and National Voluntary Reports.

SDG Moment

Methodology
Assesses challenges and opportunities in national growth trajectories with insights on environmental sustainability and inclusiveness.

Data Sources
Future trajectories to 2025 are based on IMF-WEO GDP projections, distributions of per capita income or consumption from the World Bank, and CO2 emissions from the Global Carbon Budget 2022 and EDGAR (JRC and IEA).​

Trends & Priorities

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Interlinkages

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
The exercise globally considered a total of 454 documents published from 2015 to August 2022. (Miola et al., 2019 updated in 2021-2022)​

Finance & Stimulus

Methodology
Provides insight into indicators of fiscal and financial stress with options (INFF) for stimulus and other means to accelerate progress.

Data Sources
Most recent resource data from UNU-WIDER GRD (between 2018 and 2021), debt and revenue from IMF WEO (between 2020 and forecasts for 2023), external debt from IDS (2023), yields from Haver Analytics (8 June 2023), credit ratings from S&P, Moodys and FITCH (2023), and DSA ratings from World Bank/IMF (31 May 2023).