Moeketsi Motšosi
AS the global economy navigates another period of uncertainty, a troubling reality is emerging: growth is slowing, debt levels are rising, and governments everywhere are being forced to make difficult choices.
The International Monetary Fund (IMF) projects global growth of 3.0% in 2026 while warning that geopolitical instability, inflationary pressures, and financial vulnerabilities continue to pose significant risks to economic stability. At the same time, developing countries are facing shrinking development assistance and rising debt-servicing costs, placing additional pressure on already constrained public finances.
For many Basotho, these developments may appear remote and disconnected from daily life. However, the global economy is more interconnected than ever before. Rising fuel prices, slower economic growth among major trading partners, and tighter financial conditions affect government revenues, business performance, employment prospects, and, ultimately, the cost of living in Lesotho.
The question we should therefore be asking ourselves is simple: Can Lesotho afford business as usual?
The world is tightening its belt
Across Sub-Saharan Africa, governments are grappling with increasing debt obligations, slower economic growth, and reduced access to development financing. The World Bank notes that high debt-service burdens continue to crowd out development spending, while global economic uncertainty limits opportunities for growth and job creation. Many countries are being forced to prioritise fiscal stability over new spending commitments.
Lesotho is not immune to these pressures. As a small, open economy, it remains vulnerable to developments beyond its borders. When global growth slows, export demand weakens, investors become more cautious, and external financing becomes harder to secure. This means that every public maloti spent must deliver measurable value. The era when governments could rely on borrowing or external assistance to solve development challenges is rapidly coming to an end.
Governance is no longer just a political issue
Governance is often discussed in political forums, but its greatest impact is economic. Investors, lenders, and development partners increasingly assess countries based on transparency, institutional strength, policy consistency, and accountability. In a competitive global environment, countries that demonstrate effective governance attract investment and create opportunities, while those that fail to do so risk being left behind.
For Lesotho, strengthening governance is not merely about improving political systems. It is about creating an environment in which businesses can thrive, investors can commit capital with confidence, and public resources can be used efficiently. Every delayed infrastructure project, every inefficient procurement process, and every instance of financial mismanagement carries a real cost to economic growth and employment creation. Good governance must therefore be viewed as an economic strategy rather than a political aspiration.
Beyond SACU: Building a more resilient economy
For decades, revenues from the Southern African Customs Union (SACU) have played a critical role in supporting government operations and public services. While these revenues remain important, they are influenced by regional trade performance and economic conditions beyond Lesotho’s control. Relying too heavily on SACU receipts leaves the country exposed to external shocks.
The long-term solution lies in diversification. Lesotho possesses considerable potential in agriculture, tourism, renewable energy, manufacturing, and digital services. The country’s unique geography, abundant water resources, and strategic location within Southern Africa offer opportunities that remain underutilised. Economic resilience will depend on our ability to transform these advantages into sustainable industries capable of generating jobs, exports, and tax revenues.
What does this mean for an ordinary Mosotho?
Economic policy discussions can often feel distant from the realities faced by ordinary citizens. Yet the consequences of global and national economic developments are deeply personal. When growth slows, jobs become scarcer. When government revenues decline, public services come under pressure. When inflation rises, households feel the impact in grocery stores, transport costs, and monthly budgets.
For a young graduate searching for employment, a slower economy means fewer opportunities and greater competition. For a small business owner, it can mean reduced consumer spending and higher operating costs. For farmers, it may mean increased vulnerability to market disruptions and climate-related challenges. For households already struggling to manage their finances, even modest increases in food or fuel prices can have significant consequences.
This environment requires a shift in mindset. Economic security can no longer depend solely on government employment or traditional sources of income. Increasingly, success will depend on adaptability, entrepreneurship, financial literacy, and continuous skills development.
Investing in the future
While many parts of the global economy are slowing, investment continues to flow into technology, digital infrastructure, innovation, and knowledge-based industries. The IMF notes that countries connected to emerging technology ecosystems are benefiting from stronger growth prospects than those relying exclusively on traditional economic sectors.
For Lesotho, this presents both a challenge and an opportunity. Our young population represents one of our greatest assets, but only if we equip them with the skills needed to compete in a rapidly changing world. Greater investment in education, technical training, digital literacy, entrepreneurship, and innovation ecosystems is no longer optional. It is essential.
At an individual level, Basotho should view learning as a lifelong investment. Whether through acquiring digital skills, improving professional qualifications, or developing entrepreneurial capabilities, personal growth is increasingly becoming a key determinant of economic resilience.
Fiscal discipline is the new patriotism
Perhaps the most important lesson from the current global environment is that resources are finite while demands continue to grow. Governments, businesses, and households alike must become more deliberate in how they allocate scarce resources.
For government, this means reducing waste, strengthening public financial management, and prioritising projects that deliver long-term economic value. For citizens, it means fostering a culture of saving, investing, and responsible financial planning. Fiscal discipline should not be viewed as austerity; rather, it should be understood as making choices today that protect opportunities tomorrow.
In many respects, responsible financial stewardship has become a form of patriotism. Every effort to improve productivity, reduce waste, and invest wisely contributes to a stronger national economy.
The choice before us
Lesotho cannot control global growth trends, international commodity prices, or geopolitical conflicts. What we can control is how we respond to these challenges. We can strengthen governance, improve public financial management, diversify our economy, and invest in the talents and capabilities of our people.
The greatest threat facing Lesotho is not necessarily rising global debt, slower growth, or declining external assistance. The greater danger lies in believing that the economic strategies of the past will be sufficient for the future.
The world is changing rapidly. The countries that succeed will be those that adapt, innovate, and plan strategically. The same applies to individuals. For both Lesotho and the ordinary Mosotho, the path forward requires discipline, resilience, and a willingness to embrace change.
The question is no longer whether the world is changing. It is whether Lesotho is prepared to change with it.
