Lesotho: cost of living

How fast are fuel and electricity prices rising in Lesotho?

Transport prices in Lesotho were 12.2% higher in August 2026 than a year earlier, and electricity, gas and other fuels 6.6% higher, according to the Consumer Price Index of the Lesotho Bureau of Statistics. Overall inflation was 2.6%.

Electricity, gas and other fuels rose 2.6% in August alone. Food, which takes the largest share of household spending, was 0.3% cheaper than a year earlier. The Central Bank of Lesotho's September 2026 statement lists higher oil prices and fuel levies among the upside risks to inflation, after crude oil rose back above US$100 a barrel.

Official sources: Bureau of Statistics: CPI report, August 2026 (ZIP with PDF) · Central Bank of Lesotho: MPC statement, 24 September 2026 (PDF)

What are the income tax rates in Lesotho?

Resident individuals in Lesotho pay income tax at 20% on the first M69,120 of chargeable income a year and 30% on the rest, less a tax credit of M10,824 a year (M902 a month), according to the income tax page of Revenue Services Lesotho, checked on 15 October 2026.

Where the tax worked out at those rates is smaller than the credit, the income is not taxed, but no refund is paid. Non-residents pay a standard rate of 25%. Employers deduct the tax through PAYE. The page links the Income Tax Act of 1993 and guides on withholding and fringe benefits tax. It does not state which tax year the thresholds apply to.

Official sources: Revenue Services Lesotho: Income tax

What is the poverty rate in Lesotho?

49.7% of Lesotho's population lived below the national poverty line in 2017, according to the World Bank. On the international line of US$3.00 a day at 2021 prices, the rate was 41.9%, according to the World Bank.

Both figures come from the 2017/18 Continuous Multipurpose Household Budget Survey, the most recent survey used for poverty estimates. The national line reflects the cost of a basic basket of goods in Lesotho, while the international line allows comparison between countries. The Lesotho Bureau of Statistics lists a 2021 child poverty report among its publications.

Official sources: World Bank: Poverty at national poverty lines, Lesotho · World Bank: Poverty at $3.00 a day, Lesotho · Bureau of Statistics: publications

What is the inflation rate in Lesotho?

The latest figure from the IMF, for 2025, is 4.3%. Since 2005 it has ranged from -16.9% (2009) to 10.7% (2008). It is 14th highest of 39 in Sub-Saharan Africa, where the median is 3.4%. Worldwide: 44th of 165.

How much do people in Lesotho spend?

The latest figure from the World Bank, for 2025, is $840. The peak was $878 in 2017 and the low $609 in 2007. Across Sub-Saharan Africa the middle value was $840, and Lesotho placed 19th highest of 37. World rank, highest first: 106th of 124.

What share of people in Lesotho live in extreme poverty?

The latest figure from the World Bank, for 2017, is 41.9%. That compares with 74.9% in 2002. Across Sub-Saharan Africa the middle value was 13.0%, and Lesotho placed 2nd highest of 5. Of 77 countries with 2017 data, 2nd highest.

What is the poverty rate in Lesotho?

According to the World Bank, the share of people below the national poverty line in Lesotho was 49.7% in 2017. In 2002 the figure was 56.6%. Across Sub-Saharan Africa the middle value was 33.4%, and Lesotho placed 2nd highest of 5. World rank, highest first: 2nd of 53.

How unequal are incomes in Lesotho?

44.9: that is the Gini index in Lesotho for 2017, according to the World Bank. It was 51.2 in 2002. It is 1st highest of 5 in Sub-Saharan Africa, where the median is 40.7. World rank, highest first: 8th of 77.

What is food insecurity in Lesotho?

In 2024, moderate or severe food insecurity in Lesotho was 61.6%, according to the FAO. That is the highest since at least 2018. Sub-Saharan Africa median: 60.5%; Lesotho is 15th highest of 34. Worldwide: 18th of 135.