Increasing volumes of freight are expected to flow in and out of Lesotho, which will continue to grow faster than its neighbour South Africa, according to the International Monetary Fund. A statement issued after a visit by IMF directors says Lesotho has been experiencing an average real gross domestic product (GDP) growth of 5% a year since 2010, with inflation held to single digit levels. Economic activity is expected to be supported by large public investment projects, including the second phase of the Lesotho Highlands Water Project. This will increase the demand for project cargo services in particular. “The outlook is positive, but the economy faces risks from the volatility of revenues from the Southern African Customs Union, while unemployment remains high and poverty widespread,” say the directors in their statement.
