PublicDisclosureAuthorized

KingdomofLesotho

PublicDisclosureAuthorized

GenderDimensionsofTradeFacilitation

WORLDBANKGROUP

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?2025InternationalBankforReconstructionandDevelopment/TheWorldBank1818HStreetNW

WashingtonDC20433

Telephone:202-473-1000

Internet:

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COVERPHOTOS:

??SummitArtCreations/Shutterstock

??MarcelCroze/InternationalLabourOrganizationviaFlickr,CCBY-NC-ND2.0

??pg-images/iStockphoto

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ListofAcronyms

AcronymDeinition

AEOAuthorizedEconomicOperator

CLPCertificates,LicensesandPermits

LCCTLesothoCoordinatingCommitteeonTrade

LNSWLesothoNationalSingleWindow

LTIPLesothoTradeInformationPortal

NTFCNationalTradeFacilitationCommittee

PTPPreferredtraderprogram

RSLRevenueServicesLesotho

SADCSouthernAfricanDevelopmentCommunitySACUSouthernAfricanCustomsUnion

SITCStandardinternationaltradeclassification

SPSSanitaryandPhytosanitary

SOPStandardOperatingProcedure

TFATradeFacilitationAgreement

TFSPTradeFacilitationSupportProgram

OGAOtherGovernmentAgency

WBGWorldBankGroup

WCOWorldCustomsOrganization

WTOWorldTradeOrganization

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CountryOverview

Population(2024):2.4million1

GDP(currentUSD,2022):2.2billion2

Incomecategory:Lower-middleincome3

GNIpercapita,female/male(basedon2017PPP$,2022):2,129/3,3044

Laborforceparticipationrate(percentoffemale/malepopulationages15+,2023):

57.6/73.05

Merchandisedtrade(USD,2023):exports:

0.8billion,imports:1.8billion6

Topexportpartners(2022):SouthAfrica,UnitedStates,Belgium,eSwatini,andGermany7

Topexportsbyvalue(SITCclassification,2022):Miscellaneousmanufacturesarticles;manufacturedgoodsclassifiedchieflybymaterial;beveragesandtobacco8

1UnitedNationsPopulationFund.2024.WorldPopulationDashboard.AccessedMay23,2024.

/data/

world-population/LS

.

2WorldBank.2024.WorldBankOpenData.AccessedMay23,2024.

/

.

3AccordingtotheWBG’sclassification,lower-middleincomeisdefinedashavingaGNIpercapitabetween$1,136and$4,465.Source:WorldBank.2024.WorldBankCountryandLendingGroups.AccessedMay23,2024.

https://datahelpdesk.worldbank

.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups.

4UnitedNations.2024.GenderDevelopmentIndex:HumanDevelopmentReports.AccessedMay23,2024.

https://hdr.undp

.org/gender-development-index#/indicies/GDI.

5LaborforceparticipationrateisbasedonthemodeledInternationalLaborOrganizationestimate.Source:WorldBank.

2024.WorldDevelopmentIndicatorsDatabase.AccessedMay23,2024.

/source/world-development

-indicators/Series/NE.GDI.FTOT.ZS

6WorldTradeOrganization.2024.WTOStatsDashboard.AccessedMay23,2024.

/dashboard/merchandise_

en.html

.

7LesothoBureauofStatistics.2023.AnnualForeignTradeStatisticsReport2022.Accessed2024.

.ls/New%20Folder/Copy%20of%20Economics/Foreign_Trade_Statistics_Report_2022.pdf.

8Ibid.

Topimportpartners(2022):SouthAfrica,China,Taiwan,Zimbabwe,andIndia9

Topimportedcommodities(SITCclassification,2022):Manufacturedgoodsclassifiedchieflybymaterial;foodandliveanimals;mineralfuels,lubricantsandrelatedmaterials10

WTOTradeFacilitationAgreementratified:January4,201611

Estimatedpopulationoffirmstradingacrossborders(2023):2,94612

Estimatedpopulationofcustomsbrokers(2023):4813

9Ibid.

10Ibid.

11WorldTradeOrganization.2024.TradeFacilitationAgreementDatabase.AccessedMay23,2024.

/en/

members/lesotho.

12Alistof27,057tradefirmswithtradetransactionsbetween2014–2023wasprovidedbyRevenueServicesLesotho(RSL).Followingtheremovalofduplicatesandlimitingthescopetofirmswithtransactionswithin2022–2023only,amasterlistcomprising3,322firmsengagedinimportsand/orexportswasscreened.Uponscreening,anadditional116inactivefirmsand260ineligiblefirms(NGOs,bi-national,governmententities,orreligiousorganization)wereremoved.

13ThelistofcustomsbrokerswasprovidedbyRSL.

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Contents

CountryOverview 2

OverviewofAssessment 6

ProfileofTradersandCustomsBrokers 10

KeyFindingsandRecommendations 14

1.IncreaseParticipationofWomeninTrade 15

2.ImproveTransparency 15

3.StrengthenPublic-PrivateConsultations 18

4.StrengthenBorderAgencyCooperationwithSouthAfrica 21

5.StrengthenandPromoteElectronicSystems 22

6.StreamlineandImproveConsistencyinApplicationofBorderProcesses

andProcedures 24

7.InvestigateReasonsforDetentionsandClarifyProceduresforAppeals 27

8.ImproveBorderInfrastructureandSafetyatBorderPosts 30

AnnexASurveyMethodology 34

AnnexBAdditionalFindings 37

AnnexCReferences 42

3

ListofFigures

Figure1.GenderBreakdownofRespondents 11

Figure2.TraderFirmSizebyGender 12

Figure3.SourcesofFinanceforTradeFirms-byGender 12

Figure4.FrequencyofTrade-byGender 12

Figure5.ChallengesFacedinFindingInformation 16

Figure6.SourcesofInformationonOicialBorderRegulationsandProcedures 16

Figure7.ProportionofRespondentsthatFindOicialRegulationsEasytoUnderstand 17

Figure8.AwarenessoftheLesothoNTFC 18

Figure9.ReasonsGivenforNotBeingConsultedRegularly 19

Figure10.MembershipinTrade/IndustryAssociationsbyFirmSize 20

Figure11.ReasonsforNotBeingaMemberofaTrade/IndustryAssociation 21

Figure12.ProportionofRespondentsthatSubmitDocumentsElectronicallytoBorderAgencies 23

Figure13.ProportionofRespondentsthatPayOicialFeesElectronicallyinaSinglePayment 23

Figure14.ReasonsforNotUsingtheSingleWindowPayment 23

Figure15.BorderProcessesandProceduresthatareNotConsistentlyImplemented(traders) 24

Figure16.BorderProcessesandProceduresthatareNotConsistentlyImplemented(customsbrokers) 25

Figure17.ProportionofFirmsthatAreAwareoftheAEOProgram 26

Figure18.ShareofRespondentsHavingGoodsDetainedintheLast3Years 27

Figure19.ShareofRespondentsBeingPromptlyInformedthatGoodsWereDetained 27

Figure20.ReasonsGivenforDetentionofGoods 28

Figure21.ShareofRespondentsthatFindGuidanceandExplanationsonPenaltiesandMakingOicial

AppealsClearandEasytoAccess 29

Figure22.ShareofRespondentsExperiencingInappropriateBehaviorwhileUndertakingCross-Border

TradeProcedures 30

Figure23.SourcesofInappropriateBehavior 31

Figure24.PercentageofRespondentsExperiencingInappropriateBehaviorthatReportedthisBehavior 32

Figure25.ReasonsforNotReportingInappropriateBehaviorExperiencedattheBorder 32

Figure26.OpiniononAmenitiesattheBorderPosts 33

Figure27.ProportionofRespondentsSelf-IdentifyingtoHaveSpecialNeeds 38

Figure28.EducationalAttainmentAmongSurveyRespondents 38

Figure29.DoCaretakingResponsibilitiesAfectAbilitytoEngageinCross-borderTrade? 39

Figure30.TypesofProductsImportedbyTradingFirms 39

Figure31.TypesofProductsExportedbyTradingFirms 40

Figure32.UseofGovernmentEnquiryPoint 40

Figure33.PerceptionofGovernmentEnquiryPoints 41

Figure34.PerspectiveofBorderPostOperatingHours 41

ListofTables

Table1.SummaryofKeyChallengesandRecommendations 8

Table1.SamplingFrameforTraders 35

Table2.SummaryofInterviewedFirms 35

Table3.SamplingFrameforCustomsBrokers 36

Table4.SummaryofInterviewedFirms 36

4

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5

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OverviewofAssessment

?HirenRanpara/Shutterstock

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ThisstudyisonecomponentofbroaderWorldBanktradefacilitationassistanceprogramprovidedtothegovernmentoftheKingdomofLesotho(hereafterreferredasLesotho).Thisnotepresentskeyfindingsfromthestudy,whichfocusedonidentifyingthechallengesfacedbywomenowned,ledormanagedand/ormenowned,ledormanagedfirms14(alsoreferredtoas“traders”)andcustomsbrokersastheycompletecross-borderprocessesandprocedurestoimportand/orexportgoodsinLesotho,aswellastheirexperienceswithotherimportantaspectsoftrading,suchasissuesofborderinfrastructureandsafetyatborderfacilities.Recommendationstoaddressthechallengesidentifiedarealsoincludedinthisnote,primarilywithinandbeyondthescopeoftheWorldTradeOrganization’sTradeFacilitationAgreement(WTOTFA).15

WTOTFAmeasuresareassumedtobenondiscriminatoryandapplicabletoalltradersinprinciple;however,thereislimitedresearchonhowtradefacilitationinterventionsimpactwomenandmenatthefirmlevel.Withoutgender-disaggregateddata,itisdiiculttoknowwhetheralltradersutilizetradefacilitationmeasuresefectivelyandthusbenefitfromthemtothesamedegree.Closingthisknowledgegapwillfacilitateimproveddesignofinclusivetradepolicyreformsandprograminterventions.TheWorldBank(WB)—throughtheTradeFacilitationSupportProgram(TFSP)—thereforesupportedtheundertakingofthisstudytoidentifythegender-specificobstaclesthattradersandcustomsbrokersfacewhenengagingincross-bordertradeofmerchandisegoods,withaparticularfocusontheareascoveredintheWTOTFA.16Thisstudybuildsonsimilarsurveysconductedinothercountries17

Thisreportpresentsfindingsfromphone-basedinterviewsof620tradersand38customsbrokersacrossLesothoduringOctober9–December14,2023.Duetothesmallsamplesizeofcustomsbrokers(23womenand15men),theanalysisofdataforcustomsbrokerswasnotdisaggregatedbygenderbecausedoingsowouldnotprovidestatisticallyreliableinsights.Theanalysisidentifiesareasforimprovementincross-bordertrade-relatedprocessesandproceduresandhighlightswhere

14Afirmwasdefinedas“women-led”iftheCEO/topmanager/headofthefirmwasawomanorthemajority(over50percent)oftheshareholderswerewomen.ThesurveycapturedthegenderofbothCEO/topmanager/headofthefirmandthegenderoftheowner(holderofatleast50percentofcompanyshares).Thedefinitionofthewomen-led/men-ledwasbasedonthegenderoftherespondent.

15Thisnoteisfocusedontradeofgoodsanddoesnotcovertradeinservices.ThisisbecausetheprimaryscopeofthestudyiswithintheframeworkoftheWTOTFA,whichpertainstothemovement,release,andclearanceofgoodsandnotservices.

16Seetheannexfordetailsonthemethodology.

17Forfindingsfromsimilarstudiescompletedinothercountries,see:

https://

/en/topic/trade/publication/unlocking-trade-for-women

.

Surveypopulation:

?Women-andmen-ledfirms:alsoreferredtoas“traders”whosefirmsimportand/orexportgoodsacrossLesotho’sborders.

?Customsbrokers:professionals,includingclearingagentsandfreightforwarders,thatprovideservicestohandlecross-bordertradeprocessesandproceduresforclients.

genderdisparitiesexist.Thekeyfindingsarepresentedinthisnote,andtheyhavethepotentialtoserveasabaselineforassessingchangesinLesotho’stradefacilitationenvironment.

Thereportincludesrecommendationstoaddressboththegender-specificandbroaderchallengesidentifiedinthesurveyresults.Belowisasummaryofthemainchallengesidentifiedalongwiththetop-linerecommendations(Table1).Detailedrecommendations,includingwheregendergapscanbeaddressedspecifically,aredescribedintherestofthenote.

TheWBteamextendsitsappreciationtotheRevenueServicesLesotho(RSL)foritsinvaluablesupporttotheproject.JuneGhimire(TradeFacilitationSpecialist),MariyamRaziyeva(TradeandGenderConsultant),AileenYang(TradeandGenderConsultant),andZacharyOcholaOchieng(SamplingStatistician)ledthesurveystudyandpreparationofthisnote,receivingvaluablecontributionsfromErnaniCheccucci(SeniorTradeFacilitationSpecialist),BillGain(SeniorTradeFacilitationSpecialist)andBruceEllison(CustomsConsultant).SurveyrolloutandpreliminaryanalysiswasconductedbySurveyaGlobal.

ThisstudywascarriedoutundertheSouthernAfricaRegionalTradeFacilitationprojectwithfundingthroughtheTradeFacilitationSupportProgram,whichissupportedbyninedonorpartners(Australia,Canada,theEuropeanCommission,theNetherlands,Norway,Sweden,Switzerland,theUnitedKingdom,andtheUnitedStatesofAmerica).

7

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Table1.SummaryofKeyChallengesandRecommendations

SNChallengesIdentiiedTopLineRecommendations

1ParticipationofWomeninTrade

Thereisasignificantgendergapinthenumberofwomentradersparticipatingininternationaltrade.Ofthesurveyedfirms,only

26percentwerewomen-led.

Developpoliciestoencouragewomen’sparticipationin

internationaltrade.Thismayincludeaddressingsystemicgenderinequalitiesaswellaspromotinggenderresponsiveinitiativessuchasimprovingaccesstofinance,and

cultivatingcollaborationswiththetradeassociationstoexpandknowledgeofinternationalmarkets.

2Transparency

2.131percentwomentradersreportedfacingdiicultiesinfinding

trade-relatedinformation.Amongthefirmsencounteringchallengesinaccessinginformation,almost60percenthighlightedthattrade-relatedinformationnotbeingcentralizedastheprimaryobstacle.Thetwomostcommonsourcesofinformationfortradefirmsarepersonalnetworksandgovernmentoicialsatborderposts/enquirypoints.Onlyaboutaquarteroffirmsreportedobtaininginformationfromotheroicialgovernmentwebsitesoroicialcommunicationchannels.

EnsuretheTradeInformationPortalremainsup-to-dateandpromoteitsvisibility,especiallytoreachwomentraders.

2.243percentofwomentradersfoundregulationsontrade-relatedprocessesandproceduresdiiculttounderstand.

40percentofwomentradersreportedthatuseofcustomsbrokersismandatory,wheninfactitisnotmandatory,anexampleoftherebeingamisunderstandingontheoicialrules.

Publisheasy-to-understandtrade-relatedregulations

andproceduresandconductcapacity-buildingtrainingtoensurebetterunderstandingandmaximizecompliance.

3PublicPrivateConsultations

3.1Anoverwhelmingmajorityoftraders(94percentofwomentraders)and76percentbrokersarenotawareoftheexistenceoftheNationalTradeFacilitationCommittee(NTFC).

BetterpromotetheNTFCthroughoicialwebsitesand

targetedcommunicationstrategytowardswomentradersandMSMEs;incorporategendermainstreamingintoNTFCroadmap,forexample,byallocatingresourcestowards

implementingrecommendationsaimedatpromotingwomentraders(suchasthoseinthisreport).

3.2Atotalof73percentwomentradershaveneverbeenconsultedon

changestooicialtraderegulationsandprocesses.Amongthosenotbeingconsulted,31percentwomentradersbelievetheirbusinessesaretoosmalltobeconsultedwhile40percentbrokerswerenotawareofopportunitiesforconsultations.Ofthosewhoareconsulted,36percentdidnotthinktheirfeedbackwasconsidered.

Improveconsultationmechanismsthatenableregularpublic-privatestakeholderengagement;maketargetedefortstoreachwomentradersandMSMEs;andwidelypublicizerevisionstotraderelatedregulationsand

processesbasedonconsultativeprocesses.

3.374percentofwomentraderswerenotmembersoftradeorindustryassociations,withthelowestmembershipamongmicrofirms

(19percent).Oftradersnotbelongingtoanassociation,67percentofwomentradersreportednotbeingawareoftradeassociations.

LeveragetheNTFCandtradeassociationstostrengthenandcoordinatepublic-privatedialogueengagingallrelevantborderregulatoryagencies;raiseawarenessonbenefitsofjoiningassociationsandsecuretheirrepresentationattheNTFC.

4BorderAgencyCooperation

Compoundingtheissueofdelayedconsultationsandawareness

amongtradersofchangestoregulations,isthefactthatchangestoproceduresinSouthAfricanecessitatescorrespondingadjustmentsinLesotho,oftenleavingminimaltimeforLesothotosolicitinputfromtradersandcustomsbrokersbeforeimplementation.

ImproveborderagencycooperationwithSouthAfricabyleveragingitsBinationalCommissiontostrengthencollaborationonroutinetradefacilitationmatters.

5ElectronicSystems

558percentofwomentradersand74percentofallcustomsbrokerssubmitalldocumentselectronically.

58percentofwomentradersand71percentofallcustomsbrokers

payalloicialfeeselectronicallyinonesinglepayment.However,of

thewomentradersthatdonotpayalloicialfeesinasingleelectronicpayment,64percentreportedthatpayingcashiseasier.

13percentofwomentradersandsameproportionofallcustoms

brokershavepaid“speedmoney”topublicoicialsto“getthingsdone”.

Continuetoprioritizefullandefectiveimplementationofe-paymentandsinglewindowsystemswithinasettimeframe;strengthenoversighttoeliminateunoicialpayments.

8

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Table1.SummaryofKeyChallengesandRecommendations(Continued)

SN

ChallengesIdentiied

TopLineRecommendations

6

ConsistencyinApplicationofBorderProcessesandProcedures

6.1

Approximatelyhalfofthetradersandcustomsbrokersperceivethat

borderprocessesandproceduresarenotconsistentlyappliedby

oicials.Amongtradersthatnotedinconsistencies,thetopcitedissueswereintheclearanceofexport/importdeclarations;intheprocessforpaymentofduties,taxes,fees,andcharges;andintheapplicationofcomplianceproceduresanddocumentationbyborderoicials.

Reviewstandardoperatingprocedures(SOPs)forall

agencies,andensureappropriatetrainingisprovided

toborderoicialsforconsistentapplicationofborder

processes;publishallSOPsinthetradeinformationportal.

6.2

96percentofwomentradersarenotawareofthepreferredtraderprogramorSACUauthorizedoperatorscheme.

FasttrackexpansionoftheAEOprogramsettingcleartargetsforincreasedinvolvementoftheprivatewith

specificfocusonincreasingparticipationofwomen-ledbusinesses.

7DetentionsandAppeals

7.119percentofwomentraders,28percentofmentraders,and53percentofallcustomsbrokershadgoodsdetainedinthelastthreeyears.Ofthedetentionsthatoccurred,26percentofwomentradersand10percentofcustomsbrokersreportedthattheywerenotpromptlyinformed

aboutthedetention.

Ensureallgovernmentagencieshaveappropriatelegislationandproceduresinplaceregulatingtheprocessfor

detentionofgoods;andthatautomaticnoticesaresent.

7.2Ofthefirmswithgoodsdetainedinthepastthreeyears,61percentof

womentradersand67percentofallcustomsbrokersreportedproblemswiththecustomsdeclaration/classification/valuationasthemain

reasongivenfordetention.Atotalof29percentofwomentradersand

33percentofcustomsbrokersdreportedthatthesecondmostcommonreasongivenfordetentionwasaproblemwithLPCOsorauthorizationstoimport.

Prioritizeimplementationofadvancedrulingprocedures

toprovideapredictableregulatoryenvironmentsupportedbyoutreachandeducationtocustomsagentsandtraderstosupportabilitytovoluntarilycomplywithtechnical

classificationandvaluationrequirements.

7.326percentofwomentradersfindguidanceandexplanationson

penaltiesandmakingoicialappealsunclearanddiiculttoaccess.

Prioritizeimplementationproceduresforappeal;widely

publicizetheexistenceofthetribunalandtheprocedureforsubmittinganappeal.

8BoderSafetyandInfrastructure

8.1Ofthefirmsvisitinglandbordersregularly,28percentofwomen

andmentradersand51percentbrokersexperiencedsomekindof

inappropriatebehavior,rangingfromverbalharassmenttointimidationandsexualharassment.

Ofthosewhoexperiencedinappropriatebehavior,76ofwomentradersand75percentofcustomsbrokersreportedexperiencingitfromlandborderpostoicials.Sevenpercentofwomentradersalsoreported

transportoperatorsasperpetrators.

Conducttrainingforborderstafandcustomer-facingoicialsonrespectfulcustomerserviceandgender-sensitivity.

8.2Ofthosewhohaveexperiencedinappropriatebehaviorbuthavenotreportedit,33percentofwomentradersandagreaternumberof

mentraders(42percent)wereunawareofthereportingmechanism.

Additionally,19percentofwomentradersfeltthatreportingwouldyieldnochange.Furthermore,14percentofwomentradersexpressedfearofjeopardizingtheircareerorreputationbyreportinginappropriatebehavior.

Strengthencomplaintsreportingproceduresandmaketheprocessmoretransparent.

8.3Amongtradefirmsandcustomsbrokersthatvisitlandborders,

83percentofwomentradersand61percentofallcustomsbrokers

experienceissueswiththeamenitiesattheborder.Thetopconcernfortradersincludedunhygienictoiletfacilitiesordiicultiesinfindingthemwhilethetopconcernfromcustomsbrokersincludedlackofprivate

spacesformotherstonurseortendtotheirbabies.

Thoroughlyassessexistinginfrastructureatallborderpostsandsurroundingterritoriestoensureadequateprovisionofgender-sensitiverestrooms,sanitationfacilities,l