Lesotho has developed a National Strategic Development Plan (NSDP) II (2018/19 - 2022/23), aimed at transforming Lesotho's economic structure to be more private -sector led for creating employment and achieving sustainable and inclusive growth. The country is categorized as a lower middle-income country, with per   capita   income   estimated   at USD1, 425.  Lesotho's   economic   structure is characterized by a narrow and undiversified private sector, with government spending accounting for more than 60 percent of GDP.

While Lesotho's performance in gender equality and women empowerment is positive, its ranking on the Global Gender Gap index has dropped 2018, due to widening gaps in political, economic and labor participation of women.  According to the NSDP  1 review, challenges relating to availability of data and  lack  of  frameworks  for  monitoring  and evaluation,   prevented   a   full   evaluation   of  the   results   attained   in  the   implementation   of  this  programme,  including  the MDGs.  Further, lack of coordination mechanisms for planning and to monitor implementation compromise programme investments, resulting in policy overlaps and conflict.

The Sustainable and Inclusive Economic Growth Project is an anchor for catalytic initiative to achieving the key objectives of the Sustainable and Inclusive Economic Growth portfolio, being:

i)          Livelihoods development and economic diversification

ii)         Data, research and evidence for policy

This programme   implementation   is expected to translate   into improved   inclusive   development indicators, increased employment opportunities and jobs, and government effectiveness.  Both the public   and   private   sector   stakeholders   are   expected   to   actively   participate   in   the   planning, implementation, monitoring and evaluation of national development agenda for attainment of national priorities and mutual accountability to results.