Lesotho has developed a National Strategic Development Plan (NSDP) II (2018/19 - 2022/23), aimed at transforming Lesotho's economic structure to be more private -sector led for creating employment and achieving sustainable and inclusive growth. The country is categorized as a lower middle-income country, with per capita income estimated at USD1, 425. Lesotho's economic structure is characterized by a narrow and undiversified private sector, with government spending accounting for more than 60 percent of GDP.
While Lesotho's performance in gender equality and women empowerment is positive, its ranking on the Global Gender Gap index has dropped 2018, due to widening gaps in political, economic and labor participation of women. According to the NSDP 1 review, challenges relating to availability of data and lack of frameworks for monitoring and evaluation, prevented a full evaluation of the results attained in the implementation of this programme, including the MDGs. Further, lack of coordination mechanisms for planning and to monitor implementation compromise programme investments, resulting in policy overlaps and conflict.
The Sustainable and Inclusive Economic Growth Project is an anchor for catalytic initiative to achieving the key objectives of the Sustainable and Inclusive Economic Growth portfolio, being:
i) Livelihoods development and economic diversification
ii) Data, research and evidence for policy
This programme implementation is expected to translate into improved inclusive development indicators, increased employment opportunities and jobs, and government effectiveness. Both the public and private sector stakeholders are expected to actively participate in the planning, implementation, monitoring and evaluation of national development agenda for attainment of national priorities and mutual accountability to results.