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Johannesburg - South Africa and Lesotho signed a memorandum of understanding on labour issues on Tuesday.
"We meet today to continue on our expressed objective to work together and improve our bilateral relations between our countries," said Labour Minister Mildred Oliphant in a speech prepared for delivery in Pretoria.
Oliphant said being open about problems faced in the labour market and discussing possible solutions was the only way of achieving positive results.
"We are not oblivious to the need to collaborate with our neighbouring countries as they are also impacted by developments in our labour markets."
She said South Africa was available to assist Lesotho in areas such as reviewing wage determinations, processing claims with the compensation commission, and also the possibilities of establishing an unemployment insurance fund.
"We understand the potential benefits of making these relations successful for the socio-economic development of our countries."
Oliphant said progress would be reported in six months' time.
