Territorial Development

A REPORT ON THE TERRITORIAL DEVELOPMENT APPROACH TO ACCELERATEECONOMIC GROWTH AND DEVELOPMENT IN THE KINGDOM OF LESOTHO © 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 workdo not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. TheWorld Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, andother information shown on any map in this work do not imply any judgment on the part of The World Bank concerningthe 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, thiswork 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 economicgrowth and development. Washington, DC: World Bank.” All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The WorldBank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail:pubrights@worldbank.org. Contents AcknowledgmentsVII AbbreviationsIX Document RoadmapX Executive Summary1 1Introduction5 1.1.Lesotho Economic and Poverty Profile61.2.Working toward Strategic Priorities9 2Territorial Development Framework and Analysisin Lesotho10 2.1.Bringing the Territorial Approach to Lesotho: The 2x2 Framework11 3Analyzing Lesotho’s Challenges with a TerritorialLens15 3.1.Analysis Using the Parameters of Density, Distance,Disparity, and Disaster Risk16 3.1.1.Density, or how to address the lack of economic opportunities173.1.2.Distance, or addressing internal connectivity and integrationwith South Africa203.1.3.Disparity, or how to improve living standards in Lesotho253.1.4.Disaster risk, or how to improve preparedness for climate events293.1.5.Developing a composite 4D index and heat maps33 3.2.Applying the Territorial Development Approach: A Summaryof Case Studies from Lesotho36 3.2.1.Mohair production value chain in Lesotho: Approach andrecommendations36 3.2.2.Disparities in access to services across Lesotho regions383.2.3.Lesotho’s potential to improve horticultural productivity andcompetitiveness40 4Recommendations 4.1.Developing Recommendations for Territorial Development inLesotho43 4.2.Spatially Differentiated Recommendationsfor the Government of Lesotho45 Annexes50 Annex Part 1: Full Case Studies51 Annex Part 2: Detailed Lesotho Economic and Poverty Profile64 Annex Part 3: Detailed Territorial Development Framework andAnalysis in Lesotho70 Annex Part 4: GHG Emissions Analysis75 Boxes Box 3.1. Economic Density Outside the Urban Lowlands: Diamond Mining in Lesotho19Box 3.2. Economic Density versus Economic Contribution: The Case of the Rural Lowlands21Box 3.3. The Importance of Urban-Rural Connectivity for Development in Africa22Box 3.4. Economic Distance: The Case of Increased Connectivity for Agriculture25Box 3.5. Improving Disaster Resilience30Box 3.6. Helping Lesotho Achieve its Nationally Determined Contributions (NDCs)31Box 3.7. Spatially Differentiated Climate Policy that Creates Value: The Mohair Industry33Box A.1. The Territorial Approach to Economic Growth and Development around the World71 Figures Figure E.1. 2x2 Territorial Framework3Figure 1.1. Poverty Rate versus Number of Poor8Figure 2.1. Snapshot of the Territorial Approach11Figure 2.2. The 2x2 Framework13Figure 3.1. Relationship between the 2x2 Framework and the 4Ds17Figure 3.2. Recommendations Framework for Spatially Targeted Investments35Figure 3.3. Lesotho’s Mohair Value Chain36Figure 3.4. Recommendations Framework for the Mohair Value Chain (with order of prioritization)37 Figure 3.5. Access to Basic Services in Lesotho38Figure 3.6. Recommendations Framework for Priority Actions in the Water and Energy Sectors40Figure 3.7. Recommendations Framework for Horticulture41Figure A.1. Current Wool and Mohair Value Chain in Lesotho52Figure A.2. Mohair Farmers by Season, 2010/11–2018/1952Figure A.3. Goats in Lesotho per Agricultural Year54Figure A.4. Spatially Differentiated Recommendations to Promote the Mohair Value Chainin Lesotho55Figure A.5. Access to services in rural and urban areas in Lesotho, 2005–2056Figure A.6. Access to Basic Services by Constituency57Figure A.7. Water Sources in Lesotho by quadrant59Figure A.8. Energy Sources in Lesotho by Quadrant59Figure A.9. Spatially Differentiated Approach to Priority Actions in Lesotho’s Water andEnergy Sectors60Figure A.10. Spatially Differentiated Recommendations to Improving HorticultureProduct