Lesotho is a member of the Multilateral Investment Guarantee Agency (MIGA). The latter promotes/encourages the flow of foreign direct investments to developing countries by providing investment guarantees to investors to mitigate against specified non-commercial risks associated with a project, such as: political risks, transfer restrictions, expropriation, breach of contract, war and civil disturbances in the host countries.
The current investor guarantees in Lesotho includes the following:
- A stable social and political environment that is investor friendly, with a free enterprise and free market economic system forming the basis for sustained development and growth
- An 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 or equity participation in strategic projects
- Declining water and electricity tariffs as a direct spin-off from the Lesotho Highlands Water Project