The private sector is expected to struggle, especially with regard to doing business with the government. The economy’s biggest challenge is to maintain parity between its currency and the South African rand.

Democratic institutions are very ineffective due to a lack of clear separation of powers. Political instability has contributed significantly to weak institutions as well as the high political polarization in the country.

Lesotho will continue to struggle in the fight against corruption, as the director of public prosecution will block any attempts by the Directorate on Corruption and Economic Offenses to hold politicians and senior civil servants accountable on corruption-related charges.

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