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the challenges facing landlocked developing countries: a case study ...

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LESOTHO<br />

Surrounded by South Africa, Lesotho is completely dependent<br />

on its only neighbor’s well-developed transport system for its<br />

external trade, which is primarily directed towards North<br />

America. Such unilateral dependence negates many of <strong>the</strong><br />

advantages associated with Lesotho’s proximity to <strong>the</strong> port of<br />

Durban (575km) and <strong>the</strong> good condition of its surrounding<br />

infrastructure. Lesotho’s transport <strong>challenges</strong> are fur<strong>the</strong>r<br />

complicated by <strong>the</strong> highly mountainous, rugged terrain of <strong>the</strong><br />

eastern highlands, which prevent <strong>the</strong> direct eastward transport<br />

of freight from <strong>the</strong> capital, Maseru, to <strong>the</strong> port of Durban.<br />

Reflecting <strong>the</strong> severe effects of Lesotho’s dependence and its<br />

geographical constraints, Limao and Venables (1999) reported<br />

that <strong>the</strong> cost of shipping a 40’ container from Baltimore<br />

(USA) via Durban to Maseru (Lesotho) is US$10,000,<br />

compared to only US$5,000 to Lusaka (Zambia) which is<br />

1,300km and several border crossings fur<strong>the</strong>r.<br />

BASIC INFORMATION<br />

HDI Rank: 132<br />

GDP per capita<br />

2000 (PPP$): $2,031<br />

Exports per capita<br />

2000 (current USD): $126<br />

Distance to port:<br />

575km<br />

Transport cost ratio<br />

(2000): 0.12<br />

Neighbors:<br />

South Africa<br />

Primary transit <strong>countries</strong>:<br />

South Africa<br />

TRANSPORTATION INFRASTRUCTURE<br />

Road<br />

Lesotho’s main roads, many of which provide links to <strong>the</strong><br />

well-developed South African corridor roads, are generally<br />

good. A 1995 survey reported that 84% of Lesotho’s paved<br />

roads are in “good” condition, while only 5% are considered<br />

“poor.” Lesotho, however, continues to face <strong>the</strong> challenge of<br />

providing all-wea<strong>the</strong>r access to <strong>the</strong> highlands. To deal with<br />

this problem, <strong>the</strong> government initiated a US$40 million Road<br />

Rehabilitation and Maintenance Project in 1996. The<br />

construction of <strong>the</strong> Lesotho Highlands Water Development<br />

Project has led to <strong>the</strong> fur<strong>the</strong>r improvement of many such<br />

interior roads.<br />

Main trading partners (2001):<br />

Imports: SACU (83%)<br />

Exports: North America (63%)<br />

-EIU<br />

Primary Exports:<br />

Textiles, Footware<br />

Domestic Roads: good<br />

Transit Country Roads: good<br />

Domestic Rails: n/a<br />

Transit Country Rails: good<br />

Transit Country Ports: good<br />

Neighboring Civil Conflict:<br />

low<br />

Relations w/ Neighbors:<br />

good<br />

Rail<br />

The only rail in Lesotho is a 2.6 km segment of <strong>the</strong> South African railway system that<br />

extends from <strong>the</strong> South African border to Maseru. The railway is both owned and operated<br />

by South Africa. The South African rail system to which Lesotho connects is of very good<br />

quality.<br />

Ports<br />

All of Lesotho’s import and export traffic is routed through South African ports, in particular<br />

Durban. These ports are considered to be <strong>the</strong> most efficient in <strong>the</strong> region.<br />

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