Lesotho is committed to private investment and generally opens to foreign direct investment (FDI). The country does not have a specific FDI policy. The policy instruments guiding FDI are the Companies Act of 1967, updated by the Companies Act of 2011, as well as various sector-specific pieces of legislation. These covered mining, tourism and the industrial sector, with a particular focus on textile manufacturing.
Lesotho is the convention on the settlement of investment disputes between states and is a member of the Multilateral, Investment Guarantee Agency and also a member of the International Monetary Fund.
Lesotho is a good country for investment with abundant labour force that is predominantly English speaking, literate and well motivated, with high productivity and competitive wage rates, Loan guarantees, with long-term loans and declining water and electricity tariffs as a direct spin-off from the Lesotho Highlands Water Project.
Lesotho National Development Corporation (LNDC)
The Lesotho National Development Corporation (LNDC) is the main parastatal of the Government of Lesotho charged with the implementation of the country’s industrial development policies.
The mandate of the Corporation is to initiate, promote and facilitate the development of manufacturing and processing industries, mining and commerce in a manner calculated to raise the level of income and employment in Lesotho.
Role of Lesotho Development Corporation
The role of the Corporation is to promote Lesotho as an attractive investment location for both foreign and indigenous investors.
Ministry of Trade and Industry, Cooperatives and Marketing (MTICM)
MTICM is responsible for supporting exporters to market products outside Lesotho.
Investment Climate in Lesotho has been summarized to include the following
Trade Promotion Unit (TPU)
TPU was established in 1978 to promote, coordinate and develop exports of Lesotho
For more reading