Lesotho’s Garment Exports : Attracting Foreign Direct Investment
Lesotho has built a small but significant manufacturing sector, representing about 18 percent of gross domestic product (GDP). During the past decade, the sector has increased 14-fold, an exceptional achievement by African standards. This growth wa...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1998/01/12866434/lesothos-garment-exports-attracting-foreign-direct-investment http://hdl.handle.net/10986/9908 |
| Summary: | Lesotho has built a small but
significant manufacturing sector, representing about 18
percent of gross domestic product (GDP). During the past
decade, the sector has increased 14-fold, an exceptional
achievement by African standards. This growth was due
largely to an export boom of ready-made garments and
footwear fueled by foreign investors coming principally from
the Republic of South Africa and Asia. Lesotho's
success in attracting export oriented foreign direct
investment was due primarily to Lesotho's comparative
advantage with respect to productive labor and favorable
trade arrangements. These advantages were supported and
enhanced by a World Bank project which reduced the costs and
risks of investment through a policy reform package, the
financing of industrial infrastructure, and the
establishment of an investment promotion institution and
strategy to market the country as an attractive investment site. |
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