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

The EU-SADC EPA provides Lesotho with tariff preferences and liberal rules of origin for exports to the EU, supported by a development envelope of EUR 6 million. However, Lesotho currently exports almost no agricultural or agro-processed products to European markets due to low production volumes, inability to meet stringent EU and South African standards, and fragmented coordination between government and donors. While aquaculture (freshwater trout) is growing, other produce like apples, peaches, and tomatoes remains local or limited to South African markets. The document recommends that Lesotho integrate into South African value chains as a stepping stone to the EU and focus development efforts on a few specific products to achieve the necessary scale.

• 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, supported by an EUR 6 million development cooperation envelope.
• Despite trade preferences, Lesotho exports almost no agricultural or agro-processed goods to the EU, lagging behind other SADC EPA group members like Botswana and Namibia.
• Agricultural productivity in Lesotho is hindered by systemic issues including lack of modern equipment, difficulties accessing finance, lack of commercial farming experience, and land ownership restrictions that prevent women from owning land outright.
• A significant barrier to market entry is the perception that EU standards are too stringent, a challenge compounded by Lesotho's existing difficulties in meeting the prohibitive standards and packaging requirements of the South African market.
• The Horticulture Productivity and Trade Development (HPTD) programme successfully introduced greenhouse production for vegetables using Kenyan technology, but failed to establish export capacity due to low production volumes and a market centre that was built without a clear business plan.
• The Lesotho National Development Corporation (LNDC) is attempting to revitalise the dormant Basotho Fruit and Vegetable Cannery at Masianokeng to produce items such as asparagus, peaches, and green peas through a public-private partnership.
• To successfully access the EU market, the document recommends that Lesotho first integrate into South African value chains and focus development resources on two or three specific products, such as tomatoes, apples, and peaches.

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} }