Leveraging International Trade for Climate Action in Africa: Opportunities and Challenges for Lesotho

Presented at the 3rd Annual NUL-WTO Research Chair Seminar on 5th September 2024, this policy brief by Mpeshe Selebalo explores the critical intersection of international trade and climate action in the context of Lesotho’s development trajectory. As climate change increasingly disrupts economic activities—particularly in agriculture, infrastructure, and energy—trade policy emerges as both a contributor to and a potential solution for climate resilience.
The brief highlights how WTO rules, particularly under Article XX of GATT, allow member states to adopt environmentally protective trade measures, provided they are non-discriminatory and not protectionist. It emphasizes the need for Lesotho, a Least Developed Country (LDC), to align its trade and climate strategies to foster sustainable industrialization, job creation, and poverty reduction.
Lesotho’s National Strategic Development Plan (NSDP II) and National Trade Policy Framework (2021–2025) both recognize climate change as a central development challenge. The country has made strides in clean energy generation (hydro and solar), climate-smart agriculture, and trade facilitation reforms to reduce emissions and improve competitiveness. However, challenges such as limited financing, underdeveloped capital markets, and external trade barriers—like the EU’s Carbon Border Adjustment Mechanism (CBAM)—pose significant hurdles.
Opportunities lie in expanding green exports (e.g., aquaculture, horticulture), leveraging renewable energy potential, and integrating into regional and global value chains through the AfCFTA and other trade agreements. The brief calls for targeted investments, policy coherence, and international support to help Lesotho transition toward a green, trade-driven development model.