Second Private Sector Competitiveness and Economic Diversification Prj

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The development objective of the Second Private Sector Competitiveness and Economic Diversification Project for Lesotho is to contribute to the development of selected non-textile sectors resulting in increased private sector investment, firm growth and job creation. The project will comprise two mutually-reinforcing components. The first component of the project is improving the business environment. The objective of this component is to support policy measures intended to facilitate business entry and greater access to finance. The two sub-components of this component are: business regulation, licensing and construction permit reform; and improving access to finance. The second component of the project is increasing economic diversification. The objective of this component is to support policy measures intended to strengthen the competitiveness of new growth sectors with the aim of decreasing Lesotho's reliance on textile exports as the main engine of growth. In addition, the third component of the project will support project implementation.