THE SADC EPA: HOW CAN THE AGREEMENT CONTRIBUTE TO LESOTHO’S AGRICULTURE AND AGRO-PROCESSING SECTOR DEVELOPMENT?

This policy briefing examines how the EU–SADC Economic Partnership Agreement (EPA), which entered into force in October 2016, can be leveraged to develop Lesotho's agriculture and agro-processing sectors. While the EPA provides tariff preferences and an EUR 6 million development envelope, Lesotho struggles with low production volumes and stringent EU standards. The author recommends that Lesotho integrate into South African value chains as a stepping stone to the EU market and improve coordination between government and donor programs.

• The EU–SADC Economic Partnership Agreement (EPA), effective since October 2016, provides Lesotho with tariff preferences in the EU market that increase in value as products become more processed. These preferences are supported by liberal rules of origin and a development cooperation envelope of EUR 6 million (approximately $7,010,600).
• Lesotho's agricultural sector contributes only 8% to its GDP and faces significant productivity barriers, including lack of modern equipment, difficulties accessing finance, limited commercial farming experience, and land ownership restrictions that prevent women from owning land outright.
• Despite producing various fruits (apples, pears, apricots, peaches) and vegetables (tomatoes, spinach, green peppers, onions, cabbages), Lesotho exports almost no agricultural or agro-processed products to the EU. A notable exception is freshwater trout from the Katse Dam, which is exported to Japan and South Africa; although the SADC EPA offers an 11% tariff advantage for this product, it is not currently exported to the EU.
• A major obstacle to market entry is the perception that EU standards are too stringent, compounded by existing difficulties meeting the prohibitive standards and packaging requirements of the South African market. Successful exports typically occur through partnerships with large South African retailers like Woolworths and Pick n Pay.
• The Horticulture Productivity and Trade Development (HPTD) programme provided 115 farmers, specifically targeting women and youth, with greenhouses from Kenya. However, the project failed to scale trade capacity because the state-of-the-art market centre was built without a business plan for produce volumes or off-takers, leaving it empty and inactive.
• The Lesotho National Development Corporation (LNDC) is working to revitalize the dormant Basotho Fruit and Vegetable Cannery at Masianokeng. The project aims to produce items such as asparagus, peaches, baked beans, potatoes, fruit salad, and green peas through a public-private partnership, with the LNDC seeking a strategic partner for a 40% shareholding.
• To overcome fragmented outcomes caused by government, private sector, and donors working in silos, the author recommends that Lesotho first integrate into South African value chains. Specifically, the development programme should focus on linking producers of two or three products—such as apples, peaches, and tomatoes—to South African off-takers.

APA

Bertelsmann-Scott, T. (2018). THE SADC EPA: HOW CAN THE AGREEMENT CONTRIBUTE TO LESOTHO’S AGRICULTURE AND AGRO-PROCESSING SECTOR DEVELOPMENT? South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2018/07/Policy-Briefing-178.pdf

Chicago

Bertelsmann-Scott, Talitha. THE SADC EPA: HOW CAN THE AGREEMENT CONTRIBUTE TO LESOTHO’S AGRICULTURE AND AGRO-PROCESSING SECTOR DEVELOPMENT? South African Institute of International Affairs, 2018. https://saiia.org.za/wp-content/uploads/2018/07/Policy-Briefing-178.pdf.

Wikipedia

{{cite report |last1=Bertelsmann-Scott |first1=Talitha |title=THE SADC EPA: HOW CAN THE AGREEMENT CONTRIBUTE TO LESOTHO’S AGRICULTURE AND AGRO-PROCESSING SECTOR DEVELOPMENT? |publisher=South African Institute of International Affairs |date=July 2018 |url=https://saiia.org.za/wp-content/uploads/2018/07/Policy-Briefing-178.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bertelsmannscott2018sadc, author = {Bertelsmann-Scott, Talitha}, title = {{THE SADC EPA: HOW CAN THE AGREEMENT CONTRIBUTE TO LESOTHO’S AGRICULTURE AND AGRO-PROCESSING SECTOR DEVELOPMENT?}}, institution = {South African Institute of International Affairs}, year = {2018}, month = jul, url = {https://saiia.org.za/wp-content/uploads/2018/07/Policy-Briefing-178.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }