Lesotho is a landlocked country with apopulation of about 2.0 million people. Lesotho’s privatesector makes limited use of digital technologies. In theprivate sector, digital technology can change the wayeconomies of scale are achieved, particularly throughe-commerce and digital payments. The digital economy mayprovide the better matching of buyers and sellers in acompetitive marketplace. The digital economy offerspotential for enhanced service delivery in the publicsector, but the Lesotho government’s efforts in this fieldappear fragmented and slow moving. Improved digitalinfrastructure can only achieve the desired transformationalimpact if combined with a capable public sector, investmentsin digital skills and literacy, increased access to digitalfinancial services, and ramped up support for digitalstart-ups and existing businesses. A holistic view todeveloping the digital economy is required. This report willprovide a diagnostic and offer recommendations on the fivefoundations of the digital economy in Lesotho. The reportwill examine, in turn, challenges concerning the policy andlegal environment, digital infrastructure, public digitalplatforms, private digital platforms, digital financialservices, digital entrepreneurship, and digital skills. Thisreport reviews how the digital divide affects thefoundations of the digital economy and provides policyoptions for bridging the digital divide.
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