Lesotho's geographic location makes it extremely vulnerable to political and economic developments in South Africa.
On 13 November 1997, Liz O'Donnell (Irish Minister for State) spoke about the relationship between the two nations and Ireland's future commitment towards Lesotho.
[119] On 14 February 2005, Lesotho announced that Ireland is the largest bilateral donor with financial support in excess of M70 million in each of the past three years.
[120] Ireland also supports Lesotho's Flying Doctor Service, education, sanitation, water and various health such as the Fight against AIDS with the Clinton Foundation.
Both countries share common membership of the Commonwealth and the World Trade Organization, as well as the SACUM–UK Economic Partnership Agreement.
The Southern African regional office of the U.S. Agency for International Development (USAID) in Gaborone, Botswana now administers most of the U.S. assistance to Lesotho, which totalled approximately $2 million in FY 2004.
The Government of Lesotho encourages greater American participation in commercial life and welcomes interest from potential U.S. investors and suppliers.