Lesotho faces urgent job crisis as returning nationals strain economy

Lesotho is racing against time to generate new jobs as waves of Basotho nationals stream back home, driven by anti-immigration protests and deportations in South Africa.

This surge is stretching Lesotho’s fragile labour market to its limits, sparking urgent demands for bold investment and transformative economic reforms to end the country’s dependence on labour migration.

Lesotho has historically relied on jobs in South Africa’s mining, domestic work and other sectors, with remittances contributing about 23% of its GDP in recent years.

South Africa’s unemployment rate of approximately 30% and removals exceeding 109,000 by early 2026 have increased the challenge.

In Lesotho, youth unemployment is approximately 39%. Limited private-sector growth and external economic pressures continue to restrict job creation.

The Lesotho National Development Corporation (LNDC) aims to generate 50,000 new jobs by 2031 through investments in manufacturing and agro-processing, leveraging the skills of returning workers. This effort aligns with the Extended National Strategic Development Plan II, which emphasises private-sector growth, economic diversification, infrastructure expansion, and backing for small enterprises.

Although opportunities exist in apparel, agriculture, tourism, and digital services, Lesotho faces significant challenges, including limited budgets, infrastructure gaps, and dependence on foreign markets.

With economic growth barely above 2% and nearly half the population living in poverty, the LNDC insists that only courageous action to attract investment and create sustainable jobs can unlock a brighter tomorrow.

In July, Lesotho lawmaker Machesetsa Mofomobe criticised South African authorities’ response to the protests and noted the vulnerability of South Africans living and working in Lesotho.

Mofomobe also criticised recent anti-migrant protests in South Africa. Citing the diplomatic principle of reciprocity, he said that South African citizens in Lesotho should expect similar treatment.

His statements prompted a South African, Thabiso Smith, to respond: “We don’t have a problem with Lesotho or the Basotho, but everyone entering a foreign country must have the relevant documents.”