Why Invest in Lesotho

Lesotho occupies a unique geographical position by being landlocked within the Republic of South Africa with access to the major South African international airport in Gauteng, the OR Tambo international airport, which receives over 18 million tourists annually. Long haul tourists can connect to Lesotho flights into Maseru the capital town. The flying time is approximately less than one (1) hour flying time, or can drive for about four (4) hours into Maseru.

Growing Annual Tourist Arrivals

Lesotho has experienced growing annual tourist arrivals over the years. In 2014, Lesotho received 1,078,510 tourist arrivals, and in 2015 the visitor volumes have been recorded at 1,082,403.

Signatory to Convention of Settlement of Investment Disputes

Lesotho is a signatory to the convention on the settlement of investment disputes between states and is a member of the Multilateral, Investment Guarantee Agency. Furthermore, as a member of the International Monetary Fund, Lesotho has accepted the obligations of the Articles of Agreement, thereby giving confidence to the international community of its pursuance of sound economic policies, contributing to a multilateral payments system free of restrictions.

Free Repatriation of Profits

Attractive Tax Rates.

A favorable fiscal and financial environment has been created to promote an attractive investment climate that offers attractive tax rates.

  • Value Added Tax (VAT) rate of 14% (ensuring harmonization with the RSA). The Lesotho Revenue Authority(LRA) has introduced flexible VAT payment systems, to tax complaint firms, to ease cash flow constraints.
  • Double taxation agreement with the Republic of South Africa, Mauritius and United Kingdom.

High Literacy Rates and Easily Trainable Labour Force

English speaking and a high literacy rate which makes the labour force easily trainable.

Availability of Loan Guarantees and Equity Participation

Availability of loan guarantees, with long-term loans and/or equity participation in strategic projects, through the Lesotho National Development Corporation.

Efficient Capital Markets and Portfolio Investment

Lesotho has three foreign-owned commercial banks: First National Bank, Ned Bank and Standard Lesotho Bank, supervised by the Central Bank of Lesotho.