Nonetheless, Lesotho's vulnerability to drought means that over half the country's food must be imported from South Africa, which consequently possesses an effective stranglehold over the economy. Wool, mohair and hides are important exports. There are known reserves of ores and minerals, including diamonds, uranium, lead and iron ore, but little exploitation has taken place. Light manufacturing, meanwhile, has grown steadily with food and drinks, and textiles as the main products.
Tourism is now the country's principal source of foreign exchange.
However, more recently it has made efforts to attract investment from the Far East by promoting the country as a source of cheap labour and as an export platform for the region. The new Katse Dam is expected to improve Lesotho's economic position by increasing its power-generating capacity and providing new tourist attractions in the form of artificial lakes. Lightweight suit, shirt and tie should be worn for business meetings. English will be spoken by most business people. Usual business formalities should be observed, but expect a casual atmosphere and pace.