LESOTHO TERRITORIAL DEVELOPMENTA REPORT ON THE TERRITORIAL DEVELOPMENT APPROACH TO ACCELERATE ECONOMIC GROWTH AND DEVELOPMENT IN THE KINGDOM OF LESOTHOPublic Disclosure AuthorizedPublic Disclosure AuthorizedPublic Disclosure AuthorizedPublic Disclosure Authorized © 2024 The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: “World Bank. 2024. Territorial development in Lesotho: accelerating economic growth and development. Washington, DC: World Bank.” All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org.Photo credits: © Yoichiro Ishihara/World BankIILESOTHO TERRITORIAL DEVELOPMENT ContentsAcknowledgments VIIAbbreviations IXDocument Roadmap XExecutive Summary 11 Introduction 51.1. Lesotho Economic and Poverty Profile 61.2. Working toward Strategic Priorities 92 Territorial Development Framework and Analysis in Lesotho 102.1. Bringing the Territorial Approach to Lesotho: The 2x2 Framework 113 Analyzing Lesotho’s Challenges with a Territorial Lens 153.1. Analysis Using the Parameters of Density, Distance, Disparity, and Disaster Risk 163.1.1. Density, or how to address the lack of economic opportunities 173.1.2. Distance, or addressing internal connectivity and integration with South Africa 203.1.3. Disparity, or how to improve living standards in Lesotho 253.1.4. Disaster risk, or how to improve preparedness for climate events 293.1.5. Developing a composite 4D index and heat maps 333.2. Applying the Territorial Development Approach: A Summary of Case Studies from Lesotho 363.2.1. Mohair production value chain in Lesotho: Approach and recommendations 36ConTEnTSLESOTHO TERRITORIAL DEVELOPMENTIII FiguresFigure E.1. 2x2 Territorial Framework 3Figure 1.1. Poverty Rate versus Number of Poor 8Figure 2.1. Snapshot of the Territorial Approach 11Figure 2.2. The 2x2 Framework 13Figure 3.1. Relationship between the 2x2 Framework and the 4Ds 17Figure 3.2. Recommendations Framework for Spatially Targeted Investments 35Figure 3.3. Lesotho’s Mohair Value Chain 36Figure 3.4. Recommendations Framework for the Mohair Value Chain (with order of prioritization) 373.2.2. Disparities in access to services across Lesotho regions 383.2.3. Lesotho’s potential to improve horticultural productivity and competitiveness 404 Recommendations 424.1. Developing Recommendations for Territorial Development in Lesotho 434.2. Spatially Differentiated Recommendations for the Government of Lesotho 45Annexes 50Annex Part 1: Full Case Studies 51Annex Part 2: Detailed Lesotho Economic and Poverty Profile 64Annex Part 3: Detailed Territorial Development Framework and Analysis in Lesotho 70Annex Part 4: GHG Emissions Analysis 75BoxesBox 3.1. Economic Density Outside the Urban Lowlands: Diamond Mining in Lesotho 19Box 3.2. Economic Density versus Economic Contribution: The Case of the Rural Lowlands 21Box 3.3. The Importance of Urban-Rural Connectivity for Development in Africa 22Box 3.4. Economic Distance: The Case of Increased Connectivity for Agriculture 25Box 3.5. Improving Disaster Resilience 30Box 3.6. Helping Lesotho Achieve its Nationally Determined Contributions (NDCs) 31Box 3.7. Spatially Differentiated Climate Policy that Creates Value: The Mohair Industry 33Box A.1. The Territorial Approach to Economic Growth and Development around the World 71IVConTEnTSLESOTHO TERRITORIAL DEVELOPMENT MapsMap E.1. Geographical Representation of the Four Quadrants of the 2x2 Framework 2Map 1.1. Population Density in Lesotho 7Map 1.3. Population Density, 2022 7Map 1.2. GDP Concentration in Lesotho 7Map 1.4. Expected Population Density, 2036 7Map 2.1. Relationship between Poverty and Land Elevation in Lesotho 12Map 2.2. Lesotho Ecological Zones 12Map 2.3. Lesotho 2x2 Framework in Terms of Geography 13Map 2.4. Location of Urban Areas in Lesotho 14Map 3.1. Density of Economic Activity 18Map B3.1.2. Diamond Mines in Lesotho 19Map B3.