Pre-investment Services  Provide comprehensive information on investment opportunities and doing business in Lesotho Host site visits for potential investors Provide guidance to investors for preparation of business plans. Identify investors’ infrastructural needs and facilitate allocation of these. Arrange appointments with key stakeholders for investors to familiarise them with the local administrative procedures. To sort out problems with government agencies and other service providers (over licences, permits, utilities etc) to ensure smooth start up and smooth operations of the business. Assist new investors to prepare project briefs for the Environment Impact Assessment Certification (EIA).

Assisting investors with:  Registration of companies Application for manufacturing licenses Application for Environmental Impact Assessment Certification Application for Health Certificates Registration with the Lesotho Revenue Authority Connecting to utilities Identification of suitable amenities such as accommodation, schools Application for visas , work permits and residence permits.

Tax incentives  10% corporate income tax on manufacturing profits No withholding tax on dividends distributed by manufacturing firms to local or foreign shareholders. Training costs are allowable at 125% for tax purposes. 

Stability:  A stable social and political environment which is investor friendly. A free enterprise and free market economic system, which forms the basis for sustained development and growth. Labour  Young, abundant, predominantly English speaking, literate, well-motivated labour force with a tradition of manual dexterity at competitive wage rates.  

Market access  Duty free and quota free access of Lesotho made products to a market of: 55 million consumers within the Southern African Customs Union (SACU) comprising Botswana, Lesotho, Namibia, Swaziland and South Africa. The Southern African Development Community (SADC) – (14 countries comprising 260 million consumers). ​Preferential market access of Lesotho originating products into the Australian market (22 million consumers), affording them duty free access or reduced rates of duty. Duty free access for a large list of products except for dairy, poultry and egg products granted by Canada (34 million consumers) under the GSP system. A preferential treatment agreement between SACU and MERCOSUR (comprising Argentina, Brazil, Paraguay, and Uruguay (385 million consumers) grants trade preferences on specific products originating from Lesotho as member of SACU. The SACU EFTA gives SACU originating industrial and fish products duty free and quota free access to Switzerland, Norway, Iceland and Liechtenstein. Lesotho can also export all products to the European Union (500 million consumers) duty free provided under SACU EPA Agreement. Lesotho’s industrial products can be exported duty and quota free to Japan, New Zealand, and Turkey under a GSP scheme introduced in 1972. Lesotho benefits from the lucrative American market (310 million consumers) provided by the African Growth Opportunity Growth (AGOA).

Industries 

Agriculture – Agro opportunities lie in crop farming, aquaculture, horticulture, livestock and food processing.  Lesotho’s population largely depends on subsistence agriculture for their livelihoods. Over the past three decades, the contribution of agriculture to the Gross Domestic Product (GDP) has declined from around 20% to some 7%, comprising 2.3% arable agriculture and 4.1% livestock.  Although the current status does not show significant contribution of agriculture to GDP, the sector holds immense potential towards contributing to economic growth through generating employment and reducing poverty levels.  The Government of Lesotho (GOL) has made it part of its priorities to advance commercial agriculture as one of the growth poles. In alignment with the national strategy, LNDC has also intensified its efforts to promote investment in this area.

Manufacturing – The anchor industry in this sector is textile and garment manufacturing which has existed in Lesotho for 30 years competently servicing the US and regional markets. For the past 5 years Lesotho has been the number one exporter of garments to the US under the African Growth and Opportunities Act.  Areas of investment include automotive components, textiles and garments, plastic products, consumer electrical and electronic appliances, packaging material and garment accessories such as zipper and buttons.

Renewable Energy – Lesotho produces 80 megawatts of electricity and the demand in winter goes as high as 120 megawatts. Opportunities lie in the generation of solar energy, wind energy and hydro power to generate electricity and meet the current supply gap. Excess power can be sold to neighbouring countries.

ICT – Development of a Shared Broadband Infrastructure company to support the ICT services industry.

Industrial sites – 31 hectares Nyenye industrial area which is 80km north of Maseru. 40 hectare industrial site at Ha Tikoe, 7km south of Maseru City. 7 hectare site in Berea. 121 hectares site in Butha-Buthe for Special Economic Zone development.

Mining and resource based – Historically Lesotho’s mining and resource based industries focused mainly on diamond mining and sandstone quarrying. The mountains of Lesotho are pregnant with some of the world best value diamonds as discovered through the mining activities of the last two decades. The current direction focuses on exploring the mining value chain to cease opportunities for more investment, productivity of the sector and wealth creation for Basotho through both public and private investment.  Opportunities in the sector include exploration and mining of diamonds, diamond polishing, sandstone and quarrying, harnessing water resources, and development of a mining supplier park to service the emerging mining industry.

The Lesotho National Development Corporation

info@lndc.org.ls or ce@lndc.org.ls

+266 22312012