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Economy of Lesotho


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2011.  In 2007, the average earnings of an employee in the textile sector were $103 per month, and the official minimum wage for a general textile worker was $93 per month. The average gross national income per capita in 2008 was $83 per month. The sector initiated a major program to fight HIV/AIDS called Apparel Lesotho Alliance to Fight AIDS (ALAFA). It is an industry-wide program providing prevention and treatment for the workers. (see below HIV)
Water and diamonds are Lesotho's significant natural resources. Water is utilized through the 21-year, multi-billion-dollar Lesotho Highlands Water Project (LHWP), under the authority of the Lesotho Highlands Development Authority. The project commenced in 1986. The LHWP is designed to capture, store, and transfer water from the Orange River system to South Africa's Free State and greater Johannesburg area, which features a large concentration of South African industry, population, and agriculture. Completion of the first phase of the project has made Lesotho almost completely self-sufficient in the production of electricity and generated approximately $70 million in 2010 from the sale of electricity and water to South Africa. The World Bank, African Development Bank, European Investment Bank, and many other bilateral donors financed the project.
Diamonds are produced in Letseng, Mothae, Liqhobong and Kao mines. The sector suffered a set back in 2008 as the result of the world recession but rebounded in 2010 and 2011. Export of diamonds reached $230 million in 2010/11. In 1957, a South African adventurer, colonel Jack Scott, accompanied by a young man named Keith Whitelock, set out prospecting for diamonds. They found their diamond mine at 3,100 m altitude, on top of the Maluti Mountains in northeastern Lesotho, some 70 km from Mokhotlong at Letseng. In 1967, a 601-carat (120 g) diamond (Lesotho Brown) was discovered in the mountains by a Mosotho woman. In August 2006, a 603-carat (121 g) white
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