The Kingdom of Lesotho’s Trade & Investment Background

You’re cordially invited to explore & assess several investment opportunities to be had in the Kingdom of Lesotho.

Lesotho’s small domestic market obliges her to adopt an export-led growth and expanded international trade, particularly in the globalised marketplace of the 21st century. An essential element of this strategy is to increase foreign direct investment, which will bring the established international trade links and superior technological and business needed to augment the capacity of local producers and help diversify the economy.

Lesotho has a substantial consumer market on its doorstep, as well as being in close proximity to the port of Durban on south Africa’s east coast. This gives it access to south Africa’s first-class infrastructure and communications networks, and through this the wider international community, making it suitable for export-orientated manufacturing industries. Foreign trade benefits from regional integration within SADC and SACU, while Lesotho’s status as an LDC gives it duty-free access to the markets of industrialised countries.

Lesotho’s political and regulatory environment is stable and investor friendly, with its free market economic system forming the basis for sustainable development and growth. The legal framework is solid and based upon the rule of law, as demonstrated by anti-corruption cases upheld by the best judges in the world.

The country’s labour force is young, predominately English-speaking, highly versatile, and trainable. Serviced industrial sites and factory shells are available for rental at competitive rates, with a subsidy provided to investors who erect their own factories at designated sites.

Investment is protected through the Multilateral Investment Guarantee Agency (MIGA).

A favourable fiscal and financial environment has been created to promote an attractive investment climate in Lesotho. This includes:

  • Tax Incentives – 0% tax on income generated from exporting manufactured goods outside of the Southern African Customs Union (SACU);
  • Financial & Export incentives – these include an export finance facility, long term loans and/or equity participation and zero-rated exports under the Lesotho VAT system;
  • Lesotho Duty Credit (DCC) scheme – conditions for participating in the scheme are that a company must manufacture within SACU and export its textile or clothing products outside the area. The DCC scheme gives a rebate on import duty based on the value of goods exported.

Hon. Mokhethi Shelile

lesotho ministry of trade & industry…

The Lesotho Trade Information Portal is part of the country’s Trade Facilitation Program led by the Ministry of Trade and Industry (MTI) and the Lesotho National Development Corporation (LNDC), and supported by the World Bank Group.

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Key Investment Sectors

The Kingdom of Lesotho offers lucrative investment opportunities that can be found in the SADC region. Below is a nonexhaustive list you may find attractive.

AQUACULTURE Investment Opportunities

The Kingdom of Lesotho’s Fish-farming business has in recent years seen huge exports of sushi-grade trout to Japan.

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Agricultural Sector Investment Opportunities

The Government of the Kingdom of Lesotho (GOKL) identified agriculture as one of the productive sectors for job creation and poverty reduction under its 2018-2023 National Strategic Development Plan.

Roughly 80 percent of Lesotho’s population depends on subsistent agriculture for their livelihoods. Agriculture’s contribution to Gross Domestic Product (GDP) has declined over the last five years. However, there is potential for commercial agriculture.

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textile and garments Investment Opportunities

Lesotho’s garment industry produces approximately 90 million knitted garments a year. It is estimated that Lesotho consumes between 22 000 and 26 000 metric tons of knitted…

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MEDICINAL CANABIS FARMING

lesotho-send-stone

Sandstone Investment Opportunities

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lesotho-bottled-water

Water Bottling Investment Opportunities

Lesotho’s major natural resource is water, often referred to as ‘White Gold’ by the Basotho people. The water is considered one of the most pure in the world with very little microbiological and chemical contamination which does not require intensive treatment.

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automotive components Investment Opportunities

The Automotive Industry in Lesotho is fairly new. While the country is not yet ready for an overall assembly of vehicles, the plan is to pluck Lesotho…

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