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Research Report 2004 No 4

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Research Report 2004 No 4 Exploring linkages between the Free State and Lesotho in the social and economic 2004 NO 4 sphere Exploring linkages between the Free State and Lesotho in the social and economic sphere Centre for Development Support (IB 100) University of the Free State PO Box 339 Bloemfontein 9300 South Africa www.ufs.ac.za/cds Commissioned by the Premier’s Economic Advisory Council, Free State Province, South Africa Please reference as: Centre for Development Support (CDS). 2004. Exploring linkages between the Free State and Lesotho in the social and economic sphere. CDS Research Report, LED and SMME Development, 2004(4). Bloemfontein: University of the Free State (UFS). Table of Contents Executive Summary ........................................................................................................................ 1 Glossary .......................................................................................................................................... 7 1. Introduction and Background ................................................................................................. 8 1.1 Historical context and current status quo .......................................................................... 8 1.2 Contemporary perspectives from the Free State ............................................................. 10 1.3 The role of the SADC .................................................................................................... 11 1.4 The Spatial Development Initiative (SDI) record ........................................................... 13 2. Purpose of this Study and Issue Areas ................................................................................... 15 3. Potential Zones for Development in Lesotho ......................................................................... 17 3.1 The Lesotho-Free State border – preliminaries ............................................................... 17 3.2 The Northern Border Zone ............................................................................................. 17 3.3 The Southern Border Zone ............................................................................................. 18 3.4 The Middle Border Zone: The Mohokare Valley ........................................................... 19 3.5 The Mohokare Valley Zone as focal point for cross border development ....................... 20 4. Complementary Industrialisation and Trade Strategies .......................................................... 22 4.1 The Lesotho economy ................................................................................................... 22 4.2 The rise of the textile industry........................................................................................ 23 4.3 AGOA’s impact on Lesotho........................................................................................... 24 4.4 The policy environment: differences between Lesotho and South Africa ....................... 25 4.5 Cross border trade .......................................................................................................... 26 4.6 Two Free State district economies ................................................................................. 27 4.7 The Free State Development Corporation ...................................................................... 28 4.9 Recommendations for complementary industrialisation and trade strategies ................... 30 5. The Mohokare Valley as a Special Development Zone ...................................................... 32 5.1 Agricultural and land reform in Lesotho ........................................................................ 32 5.2 Free State perspectives on agriculture and land reform................................................... 33 5.3 SADC’s agricultural initiatives ...................................................................................... 35 5.4 Recommendations for agriculture and land reform ......................................................... 35 5.5 Tourism links between Lesotho and South Africa .......................................................... 36 5.6 Perspectives on tourism developments in the Free State ................................................. 37 5.7 SADC Tourism .............................................................................................................. 37 5.8 Recommendations for tourism development strategies ................................................... 38 6. Cross Boundary Infrastructure ............................................................................................... 40 6.1 Lesotho’s urban management capacity ........................................................................... 40 6.2 Free State infrastructure ................................................................................................. 41 6.3 SADC perspectives on PPPs and infrastructure provision ............................................. 42 6.4 Recommendations for cross-boundary infrastructure ...................................................... 43 7. Cross Border Utilisation of Social Infrastructure ................................................................... 45 7.1 Border controls .............................................................................................................. 45 7.2 Cross border use of services ........................................................................................... 46 7.3 Recommendations for cross border social infrastructure ................................................ 47 8. Conclusion ............................................................................................................................ 48 Appendices ................................................................................................................................... 49 Table 1: Temperatures :Northern Zone. ................................................................................. 49 Table 2: Rainfall:Northern Zone ............................................................................................ 49 Table 3: Employment: ........................................................................................................... 49 Table 4: Comparative agricultural performance ..................................................................... 49 Table 5: Education ................................................................................................................ 50 Table 6: Health ...................................................................................................................... 50 Table 7: Temperatures ........................................................................................................... 50 Table 8: Rainfall .................................................................................................................... 51 Table 9: Gender ..................................................................................................................... 51 Table 10: Employment: Mohokare ........................................................................................ 51 Table 11:Pass rates ................................................................................................................ 52 Table 12: Temperatures ......................................................................................................... 52 Table 13: Rainfall- Southern zone ........................................................................................ 52 Table 14: Employment -Southern Zone ................................................................................ 53 Table 15: Labour ................................................................................................................... 53 Table 16: Annual Imports for the Financial Year 2002/2003 for all border posts.................... 53 Table 17: Crop production ..................................................................................................... 54 Table 18: Mohokare crop production ..................................................................................... 54 Table 19: Mohokare livestock ............................................................................................... 54 Table 20: District Urban Population ...................................................................................... 55 Table 21: Projections about urban growth to 2030 ................................................................. 55 Table 22: Sector Contribution ................................................................................................ 55 Table 23: Income: Government of Lesotho ............................................................................ 56 Table 24: Mineworkers’ origins ............................................................................................. 56 Table 25: Manufacturing incentives ....................................................................................... 57 Table 26: Assisted companies ................................................................................................ 57 Table 27: Manufacturing employment share .......................................................................... 59 Table 28: Preferences :US Trade ........................................................................................... 59 Table 29: AGOA exports: S.A and Lesotho ..........................................................................
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