ABSTRACT
As an enclave of South Africa, and because of the political and historical heritage of the Basotho nation, Lesotho has always been closely integrated with South Africa. Legal and de facto integration arrangements and other close economic and institutional links between Lesotho and South Africa have been operating for more than a century. The present agreements comprise Lesotho’s membership in the Common Monetary Area (CMA) and the Southern African Customs Union (SACU), a labour agreement, which set out the conditions of labour migration between Lesotho and South Africa, and the Treaty on the Lesotho Highlands Water Project (LHWP).1
