Most of the arable land in the lowlands of Lesotho including Maputsoe is under infrastructural development of residential settlements, large scale industries, roads and slum settlements which includes shacks and roadside spaza shops. These settlements have large human populations that derive their livelihood through wide range of activities. These activities comprised of subsistence agriculture in the form of crop production, livestock and vegetable production, formal work in both primary and secondary labour market, informal work such as niche markets in the service sector, petty commodity production and others. This thesis attempts to shed light on the impact of urban development on household livelihood strategies in the lowlands of Lesotho with specific focus to Maputsoe town. Although literature review indicates livelihood and urbanisation as two broad subjects that need special research on their own, the aim of this research focuses on impact of urbanisation on livelihood strategies. To achieve this the study looks at the activities entitled to households to generate livelihood as well as social and economic characteristics determining household livelihood strategies. To determine whether urban development has an effect to household livelihood strategies, the study compares household livelihood strategies in urban household sample (Maputsoe) to rural household sample (Fobane). The basis for choosing these two settlements was based on the understanding that household perceptions and opinions on impact of urbanisation on livelihoods will be different since Maputsoe is located in urban and Fobane in the rural area. To gather household perceptions, survey was conducted in both urban and rural area. Survey questions were formulated so as to determine factors affecting livelihood strategies as well as activities entitled to households to generate livelihood strategies. The analysis of results suggests three mam points influencing household livelihood strategies (they include household characteristics and social structure among both urban and rural households in the sample. They further include opportunities to employment among urban and rural households in a sample as well household assets among both urban and rural households. They show that both two samples are liable to less diverse livelihood strategies but due to conducieve environment favouring urban location. Maputsoe narrowly has more livelihood strategies per household than did Fobane. The results further prove the contention that urban development is likely to affect household livelihood strategies negatively or positively. / Thesis (M.Sc.)-University of Natal, Pietermaritzburg, 2001.

A thesis submitted to the Faculty of Arts, University of the Witwatersrand, Johannesburg, for the Degree of Doctor of Philosophy, 1979 / The central focus of this thesis is on the machinery of planning in tae Lesotho Government and the tasks which it endeavoured ;o initiate and administer. One objective of the study has therefore been ti furnish a detailed internal history of those departments of" Government (in particular, the Central Planning and Development Office) principally concerned with planniig. The primary purpose, however, lias been to use this casu study to provide an insight into the nature of the bureaucracy and, mere specifically, into its attitude toward, and capability of Initiating, reform. The study thus relates to one of the major issues of concern to political and administrative analysts of underdeveloped and recently politicallyindeoendent states: namely the compatibility or otherwise of the ’bureaucracy* with 'reform' and 'development'. Planning wa. selected as an appropriate focal point for this analysis, since it had generated such great expectations in the early post-colonial period. It was common to the administrative experience of many new state that the establishment of a central planning office was considered to be one essential early step toward change and progress. The detailed case study covers the administration of planning in Lesotho for the ten years between 19^5 and 1975• It commences immediately before the establishment of the Planning Office, obt.vrvcs its establishment, the problematic early years of minimal advance and, later, its more rapid growth and relatively enhanced efficiency. A portrayal of this history as a subunit struggling to increase its influence in conflict and competition with other subunits of a large bureaucratic organization, presents a more accurate representation than one Which suggests the evolution of tic planning machinery as part oi a s'- Totic exercise in administrative reform. next section, which relates and discusses the visws and concerns of the participants themselves, is intended Co offer further insight into the •official mind' of the Lesotho bureaucracy, and thus to supplement the case study. A brief examination of the principal features of Lesotho's economy follows. This reveals clearly that the me L. trends are towards a deipening state of underdevelopment and a steadily growing dependence. The record of a deteriorating economic predicament is Jux+*posed with the strengthening of the planning machinery and so throws into question the role of the bureaucracy in a situation of this nature. At the cloaa, three approaches to public administration in underdeveloped countries are discussed as a means of interpreting wlia t , exactly, lias been observed. Ihe 1 irst conclusion is tliat the case a^udy reveals a strengthening of the planning machinery which would satisfy the very m dest requirements of reform as understood by the 'African Public Administration and Management' movement. Taking note of the manner in which the planning machinery has grown and also of certain practices and policies of the civil service as a whole, the second conclusion is that the changes observed fall far short of the demands of the 'development administration' movement; there was little serious interest in the type oi reform which that movement proposed. v- brief discussion of the 'bureaucracy' and the 'migrant worker , set against the background of economic deterioration and increasing dependence, leads to the final conclusion. This confirms the 'underdevelopment and dependence' movement's perception of the role of the bureaucracy in the post-colonial or,,. Lesotho's civil Service was gaining material advantage from, and serving to abet, the forces of underdevelopment. In the i trial analysis, therefore, the case observed is one of administration for underdevelopment; tliat is, underdevelopment administration.

This is a dissertation on the socio-economic impact of poverty reduction in Lesotho. The major thrust of the study was to address the problem of low community participation inherent in development activities. This was triggered off by the high incidence of poverty in Lesotho. The researcher had prior belief that this was a result of low levels of community participation. The study was meant to contribute to knowledge and test research hypotheses and theories. It was proposed that various programmes or initiatives can improve the socio-economic condition of the rural poor through enhanced community participation. Interviews, questionnaires and focus group discussions were used to elicit data from the respondents. Qualitative and quantitative techniques were employed in the collection and analysis of data. The research focused on three villages in rural Lesotho. These are Liphiring, Majapereng and Qhalasi, all found at Taung in the Mohale's Hoek district. Also, development professionals in government and voluntary agencies were consulted for information. The total sample of 158 respondents was used for the study. The results of the study indicate very low levels of socio-economic development in the three villages. Unemployment was found to be at the head of all malaises. It is strongly demonstrated that government programmes have failed to ameliorate the situation. The failures of subsistence agriculture and limited non-farm activities have led to greater dependence of the villagers on government aid. The study has noted poor organizational capacity resulting in political conflicts in the villages. In addition, the study unearthed poor co-ordination and lack of collaboration between government and other development agents in the anti-poverty project. Finally, the study uncovered that programmes respond poorly to villagers' needs. The majority of households are of one mind that government programmes need to be restructured in order to better serve their needs. In the main, the study has noted very little achievement in poverty reduction. This research has shown that this resulted from low levels of community participation and poor implementation of policies by the government. / Thesis (M.Dev.Studies)-University of Natal, Durban, 2004.

No abstract available. / Thesis (M.Dev.Studies)-University of Natal, Durban, 2001.

This thesis is organised around two enquiries concerning out-migration from Mapholaneng Catchment in North Eastern Lesotho. Firstly, the social, cultural and economic impacts of the migrant labour system on the living conditions of the rural households is investigated. Secondly, possible alternative strategies are explored that could be applied to initiate and develop income-generating activities for the rural unemployed and marginalised individuals to address the on-going retrenchment of Mapholaneng migrants from South African mines. The thesis is thus a juxtaposition of historical impacts of labour migration and future considerations for what could be done to replace household's losses of income from mine retrenchments from South Africa. The thesis addresses both positive and negative socio-economic and cultural effects and influences of the historical system of labour migration between Lesotho and the Republic of South Africa. The effects of retrenchment on villages and households in Mapholaneng are disastrous and the most· affected households are those whose historical existence have largely depended on migrant labour wages and remittances. This loss of jobs in many households in Mapholaneng's villages has negatively affected the living conditions such as through reduced clothing and food-supply, schooling and medical care provisions. Moreover, the escalating rate of unemployment of many migrant worker members of households in the catchment are associated with the development of crime, robbery, theft and illegal trade in dagga and diamonds, all of which are gradually becoming the norm of life in the catchment. The second thrust of the thesis is directed at identifying alternative sources of households existence to replace losses of income from migrant labourer retrenchments. The thesis has investigated catchment households in terms of day to day living conditions and the surrounding physical environment, so as to determine household production and consumption demands and development potentials of the catchment. For instance, available resources of the catchment as a whole are identified. Household sizes, composition and gender of members are also studied to determine dependency and labour power potential for production, employment and job-creation initiatives in the catchment. The comparative conditions of living between migrant and non-migrant households have also been recorded to assess their general standard or quality of life. This is done by examining households historical changes in sources of income in the rural economy from livestock and crop farming practices so as to gauge future sustainability of these economic activities in the catchment. Land tenure systems, ownership and usage of fields, quality and quantity of livestock reared, cattle-posts and other rural farming issues have critically been assessed as they affect and will continue to influence rural life in Mapholaneng. Furthermore, the contributions of migrant labour wages vis-a-vis non migrant labour wages on the development of Mapholaneng is considered. The study has shown that labour migration to South African mines has brought both good and bad effects to the conditions of living in the catchment and labour migration has influenced social, economic and cultural practices of rural households in Mapholaneng. The destruction of family and social relations including changes to customs, beliefs and general ways of living among people in Mapholaneng has occurred. However, on the positive side, initiatives in self-employment and establishment of small business and petty trading enterprises by the ex-migrants are some of the examples identified in the study. While the study is an examination of the development impacts of labour migration at both village and household levels, it is concluded that the long practice of labour migration to South Africa from Mapholaneng has also contributed to the regional underdevelopment of the whole catchment. Influences of negative attitudes to schooling and indoctrination in the mines among the youth of the catchment, loss of local agricultural skills, loss of households labour power due to absence, disablement and death of migrant workers and effects of land degradation are some of the negative impacts of labour migration in Mapholaneng. Lastly, based on the losses of jobs and migrant wages by the majority of the former migrant households, future job creation and other viable alternative sources of income for the catchment are identified and recommended for the future sustainable development of Mapholaneng. The research techniques and methodology used for the collection of data for the thesis include a reviewof the relevant literature, extensive field work that involved observation and participatory techniques, informal interviews with local people and a formal household questionnaire survey based on a random sample of migrant and non-migrant households in five villages in the catchment. Data are presented in numerous tables and several maps and photographs depicting some of the physical conditions and socio-economic issues investigated in the study are included in the text. / Thesis (M.Sc.)-University of Natal, Pietermaritzburg, 2001.

Lesotho’s current production of raw wool is sold to global markets through South African wool merchants. Lesotho does not have any wool processing facilities and as such, the wool from Lesotho gets processed in South Africa or sold to international markets like China where it is processed. Since 2012, the government of Lesotho has publicly showed interest in developing a wool scouring plant that would process locally produced wool instead of selling it in its raw unprocessed form to international markets. The understanding by the Lesotho government was underpinned by perceived economic benefits that could be realised by the country and the wool industry of Lesotho, if the wool scouring plant was developed. The wool industry is important to the economy of Lesotho and as such, wool production in Lesotho contributes to the living standards in the rural areas as their lives are highly depended on the production of wool. A vibrant wool industry in Lesotho therefore has the potential to contribute to the growth of the economy, the manufacturing sector, employment at both the herder and the manufacturing levels, and the export sector. Wool scouring or wool washing is the early stage processing of greasy wool. The purpose of wool scouring is to extract grease, dirt, unpleasant smell and other foreign matter from the greasy wool. Raw wool fibers contain fat, suint (sheep sweat salts), plant material and minerals. It is therefore necessary to remove these from wool by scouring with a combination of detergents, wetting agents and emulsifiers before further processing. Wool can lose up to 30% of its original weight during this process. The Lesotho government feels that there is a need to develop a wool scouring plant in Lesotho because Lesotho does not benefit from the South African wool scouring processes and anything that happens post that process. Given that no viability studies had been conducted in Lesotho to motivate the government’s interest in developing a wool scouring plant, this study was conducted with the aim to investigate the benefits of developing a wool scouring plant in Lesotho. The research design employed in this study was a mixed method, which is a combination of positivism (quantitative) and interpretivism (qualitative) data collection and analysis in parallel form. In terms of the qualitative component of the study, structured interviews were conducted, governed by in-depth interview guidelines developed by the researcher. A questionnaire was used for the qualitative component of the study. Among some of its findings and recommendations the study recommends that there is insufficient wool produced in Lesotho to support a local wool scouring plant, the government of Lesotho should rather focus their effort on the improvement of the wool production value chain to assist farmers. The study finds no grounds for the justification of the development of a local scouring plant in Lesotho and recommends that for such propositions to be made publicly, at least proper groundwork should be undertaken to investigate the technical feasibility of developing the scouring plant.

The research investigates the impact of internal rural - urban migration III Lesotho on household income and employment. Using data gathered from the 2002/03 household survey, the 2006 nationwide census and a questionnaire on rural - urban migration in Lesotho administered to 500 respondents in Maseru and Leribe, we estimate a logit model of the probability of employment in Lesotho in 2008 given a set of independent variables. The independent variables are respondent's work experience; years of education completed; employment status in 2004; employment status in 2008; gender; job skill level; place of residence in 2004 and a categorical variable that measures whether or not the respondent is a rural - urban migrant. The results suggest that migration and work experience have no significant impact on an individual's likelihood of being employed in the country's formal sector. Also, it was found that the higher the level of education an individual has, the less likely are their chances of employment in the country's formal sector because of the lack of formal jobs in the urban areas. Over 50% of Lesotho's workforce employed in the urban areas was discovered to work in the informal sector. The study concludes that there is a lack of jobs in Lesotho's urban formal sector that results in a thriving informal sector. The advantages of informal sector jobs to the rural - urban migrant include an increase in their standard of living as well as that of their family members left behind in the rural areas but the disadvantages include low levels of investor confidence that lead to a decrease in overall economic development and growth in the country.

This dissertation provides a review of the nature of urban environment and livelihoods in an attempt to improve understanding and awareness of challenges facing cities and towns in developing countries, in particular their impact on poor women and children. Some urpan challenges are context-based and cultural, but there are special commonalities found in most developing countries like crime and unhealthy environment per se, that exacerbate poor people's vulnerability. Women and children are identified in series of research to be the most poverty stricken and vulnerable; hence prone to shocks. It is therefore important that factors such as urban poverty that increase their marginalization be explicitly identified if the global reduction of poverty is to be maintained. However, given the increasing global poverty levels and enduring children's malnutrition levels, it is clear that major factors that determine livelihoods such as income, food security and health are still inadequate to meet the challenges that urban areas offer today. Other than the material wealth, complex urban livelihoods have amongst other things, reduced provision of other socio-psychological factors such as caregiving, which are critical for children's development and nutrition. Urban livelihoods force women to participate whole-heartedly in the wage labour. On one hand, this incidence may lead to household's food security, children's nutrition, women's empowerment (socially, economically and psychologically) and optimisation of their autonomy. But on the other hand this can result into reduced women's devotedness and effectiveness to child caring, thereby resulting into child malnutrition and child poverty. It is therefore the aim of this research study to demonstrate that while wage income can be a critical aspect of children's nutrition in urban areas, without adequate caregiving behaviours our goal of reducing children malnutrition is no where near to be reached. This research has used qualitative data owing to the information needed, which is primarily based on opinions, beliefs and perceptions about children's health and nutrition status. The analysis showed that demographic and socio-economic status in the community and household levels are crucial in determining women's ability to sustainable food security, child care and nutrition. Other factors identified as crucial in child's nutritional status were health, education and age of a mothers and people who provide care to children when mothers are at work. / Thesis (M.A.)-University of KwaZulu-Natal, Durban, 2004.

Thesis (DPhil (Political Science))--Stellenbosch University, 2009. / ENGLISH ABSTRACT: The main problem investigated in this study is why a homogeneous nation with a high literacy rate such as Lesotho has had so many breakdowns of democracy since independence in 1966. Lesotho is completely surrounded and economically dependent on South Africa and depends mostly on the external sources of income (migrant remittances, customs revenues and foreign aid). Why has this democracy not consolidated? For the assessment of the consolidation of Lesotho’s democracy, this study adopted the multivariate model of Bratton and Van de Walle. This model uses institutional as well as socio-economic variables. In the application of this model various other authors were used as well. Schedler dealt with the concept of breakdowns, whereas Linz and Stepan emphasised institutions and Przeworski et. al and Leftwich also utilised multivariate models, including socio-economic factors. Upon the attainment of independence, the King became a constitutional monarch within a parliamentary system. The monarchy was from the beginning of independence uncomfortable with this status that granted him limited powers. The democratic regime inaugurated with the 1965 elections lasted only till 1970, when the ruling party under Chief Leabua Jonathan which did not support the monarchy, declared the election results invalid and suspended the constitution after his ruling party lost to the opposition. But Chief Leabua Jonathan was toppled from state power in 1986 by the military. The military ruled for eight years. It was clear that the monarchy (eager for executive powers) and the military became factors in the survival of democracy in Lesotho. Democratic rule was relaunched in 1993. The 1993 and 1998 elections were followed by violent power struggles. This time the constituency-based electoral system served as catalyst for the political crises and was blamed. This is because seats did not reflect electoral support as opposition parties were not adequately represented in parliament. Constitutional reforms followed and in 2002 democratic rule was reintroduced. The 2002 and 2007 elections were conducted under the Mixed Member Proportional (MMP) system, which is a hybrid between constituencyiv based and proportional representation. Despite the electoral reforms, uncertainties still remained as the result of escalating socio-economic problems. This study addresses the ways in which the monarchy, the military, the electoral system and the socio-economic factors contributed to the breakdown of democracy in Lesotho. The original aspect of this study lies in the novel set of questions that have not been asked before. It fills the gap in the literature on the 2007 elections and the workings of the new electoral system by comparing the 2002 and the 2007 elections. Despite the constitutional reforms in 2002, the 2007 elections resulted in the new set of problems. The problem of the Lesotho MMP system is how it has to be operationalised and the lack of understanding among the politicians and electorates on how it works. This situation is exacerbated by the absence of legal and clear guidelines on how the translation of votes into seats– especially for candidates under proportional representation (PR) – has to be undertaken in cases where there are coalitions between parties. This institutional reform of the electoral system has not added any value for the development of democracy as losing parties have refused to adhere to the rules. Apart from the electoral system, some of the other core problems are older and institutional. The monarchy has over the years been at the root of some of the country’s democratic breakdowns. It also had influence in the military. The military instituted a period of authoritarianism and managed the transition to democratic rule in the early 1990s.The monarchy and the military continued to destabilise the post- 1993 democratic governments until 1998, after which the electoral system was reformed. But the problems are not only institutional. Lesotho is a democracy with low per capita income. It also has high levels of inequalities as well as high unemployment. Lesotho also has one of the highest HIV/Aids rates in Southern Africa. The country performs poorly when measured against aspects of the United Nations Human Development Index (HDI) such as life expectancy, mortality rates and standard of living. It is the poorest country, with the lowest HDI of Southern Africa’s “free nations”, according to Freedom House. These socio-economic problems have impacted negatively on the prospects of democratic consolidation. One positive aspect is the high literacy rate of over 80%. But this has not benefited Lesotho’s democracy in any meaningful way as most of its educated people are working in South Africa. The country does not have a sizeable middle class, while civil society, except for churches, is also weak. While the monarchy and military have been successfully depoliticised, Lesotho’s democracy remains unconsolidated because of weaknesses in the electoral system (lack of understanding of its operationalisation) and continuing problems of socio-economic development. Its ethnic homogeneity is not an asset either as other divisions have recurred all the time. The overall conclusion is therefore that although most institutional factors responsible for democratic breakdowns in the past have been overcome, the socioeconomic variables such as poverty, weak civil society, small middle class and socio-economic inequality will hinder consolidation for a long time to come. / AFRIKAANSE OPSOMMING: Die hoofprobleem wat in hierdie studie ondersoek word, is hoekom ’n homogene nasie met ’n hoë geletterdheidsyfer soos Lesotho, soveel onderbrekings (“breakdowns”) van die demokrasie sedert onafhanklikwording beleef het. Vir die beoordeling van konsolidasie van Lesotho se demokrasie is van ’n model van multivariëteit gebruik gemaak. Dit is gebaseer op die denke van Bratton en Van de Walle wat van sowel institusionele as sosio-ekonomiese veranderlikes gebruik maak. Die konsep van afbreuk (“breakdown”) is van Schedler afkomstig. Linz en Stepan maak uitsluitlik van institusionele veranderlikes gebruik, terwyl Przeworski et. al en Leftwich ook van multi-veranderlikes gebruik maak. Hulle denke het die teoretiese raamwerk van hierdie studie gevorm. Heeltemal omring deur, en afhanklik van Suid-Afrika, word die Koninkryk van Lesotho geteister deur politieke onstabiliteit. Die koning het ’n grondwetlike monargie binne ’n parlementêre stelsel geword. Die monargie was egter sedert die begin van onafhank-likheid ongemaklik hiermee. Die demokratiese regime het in 1965 met verkiesings tot stand gekom. Maar dit het slegs tot 1970 geduur toe die regerende party van Hoofman Leabua Jonathan die verkiesing verloor het, en die grondwet opgeskort het. Hyself is in 1986 in ’n staatsgreep deur die weermag omvergewerp. Dit was toe reeds duidelik dat die monargie en die militêre faktore in die oorlewing van demokrasie in Lesotho geword het. Demokratiese regering is in 1993 heringestel. Die 1993 en 1998 verkiesings het egter weer geweld opgelewer. Nou was die kiesafdeling-gebaseerde kiesstelsel geblameer omdat setels nie met steun vir partye gekorreleer het nie. Grondwetlike hervormings is ingestel waarna demokrasie weer in 2002 heringestel is. Die verkiesings van 2002 en 2007 het onder reëls van ’n hibriede stelsel van proposionele verteenwoordiging sowel as kiesafdelings plaasgevind. Daar was stabiliteit, maar onsekerhede was as gevolg van ingewikkeldhede van die stelsel wat nie opgelos is nie. Die studie ontleed die rol van die monargie, die weermag, die kiesstelsel en vlak van sosio-ekonomiese ontwikkeling in die opeenvolgende demokratiese ineenstortings in Lesotho. Die oorspronklikheid van hierdie studie is dat vrae gestel word wat nog nie voorheen met betrekking tot Lesotho gedoen is nie. Dit vul dus ’n gaping in die literatuur, ook wat die onlangse verkiesings van 2007 betref. Ten spyte van die grondwetlike hervormings van 2002, het die 2007 verkiesings nuwe probleme opgelewer. Die probleem is dat sowel die kiesers as die politici nie altyd verstaan hoe die formules van die hibriede stelsel werk nie. Daar is ook ’n afwesigheid van riglyne oor hoe om stemme in setels om te sit waar kaolisies deelgeneem het. Afgesien van die verkiesingstelsel, is van die ander probleme ouer, maar ook institusioneel van aard. Die monargie soos hierbo gestel, is deel van hierdie probleme. Dit het soos aangedui ook ’n invloed op die militêre gehad. Beide het die demokrasie gedestabiliseer tot ná 1993 en 1998, waarna die nuwe verkiesingstelsel nuwe probleme opgelewer het. Die probleme in Lesotho is egter nie net van ’n institusionele aard nie. Lesotho is ’n arm demokrasie met lae per capita inkome, hoë ongelykhede en werkloosheid, asook van die hoogste HIV/Vigs syfers in Suider Afrika. Lesotho vaar ook swak op die Verenigde Nasies se Menslike Ontwikkelingsindeks. Dit is ook die armste van Freedom House se nasies wat as “vry” geklassifiseer word. ’n Positiewe aspek is die hoë geletterdheidsyfer van 80%. Maar dit het Lesotho oënskynlik nie gehelp om die demokrasie volhoubaar te maak nie. Die land het byvoorbeeld nie ’n beduidende middelklas nie, terwyl die burgerlike samelewing met uitsondering van die kerke, ook swak is. Terwyl die monargie en die militêre deesdae gedepolitiseer is, is die demokrasie nog nie gekonsolideer nie. Die redes hiervoor is die probleme met die kiesstelsel en voortgesette lae ekonomiese ontwikkeling. Etniese homogeniteit is ook skynbaar nie ’n bate nie, want ander verdelings ontstaan deurentyd. Die hoofkonklusie van hierdie studie is dus dat alhoewel Lesotho die institusionele faktore wat vir demokratiese afbreuk in die verlede verantwoordelik was oorkom het, die sosio-ekonomiese veranderlikes soos armoede, swak burgerlike samelewing, klein middelklas en ongelykheid steeds konsolidasie nog vir ’n lang tyd sal belemmer.

Dissertation submitted in fulfilment of the requirements for the degree Master of Technology: Business Administration in Entrepreneurship in the Faculty of Business at the Cape Peninsula University of Technology 2013 / Tourism is a fast growing industry and has the potential for poverty alleviation for rural persons. Butha-Buthe, being in a rural area of Lesotho, has magnificent scenery of mountains, attractions to be visited, and adventure activities to be done. However, tourism in Butha-Buthe is under-developed, and it is very important to identify tourism’s potential in this area and explore how SMMEs could contribute in the development of tourism. Therefore the objective of this study is to examine the economic role of small, medium and micro enterprises in the development of tourism in Butha-Buthe. Challenges faced by the SMMEs include lack of resources such as poor infrastructure poor roads, transportation, and a lack of network-communication. Other challenges would be poor business skills in regards to employment and management which leads to business failure. To accomplish the study objective, questionnaires were distributed to local entrepreneurs in Butha-Buthe, local communities, local government and other stake-holders in the district. In addition, a mixed method of research was carefully and logically planned and then implemented. A survey questionnaire was used to obtain the views of the different stakeholders. The questionnaires were collected and data analysed which allowed the researcher to draw conclusions and propose a range of recommendations based on the findings, to assist in the development of tourism in Butha-Buthe. The findings revealed that there is huge potential of tourism development in Butha-Buthe through the SMME sector, but that there are still challenges faced by SMMEs in this district, despite the economic contribution they make. However, through the support of the government and private sectors these challenges should be dealt with.