Lesotho Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in lesotho, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Market Entry Strategy
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For U.S. businesses interested in doing business in Lesotho, it is important to have a local presence by establishing branch offices, pursuing joint ventures with local businesses, or making use of sales agents. It is worthwhile to establish business relationships before tender opportunities are announced. U.S. firms should seek reputable local partners in their line of business or a complementary business. Personal meetings with potential agents are encouraged, and due diligence is recommended to ensure that partners are reliable. The U.S. Embassy encourages prospective U.S. investors to contact the National Development Corporation (LNDC), which plays a facilitating role for foreign investors, providing information to prospective investors, arranging site visits, helping with registration and licensing, and securing premises. Building strategic relationship with key government Ministries including Trade and Finance as well as the Central Bank of Lesotho can also be beneficial.

Understanding the legal framework for business operations is essential for companies entering the Lesotho market. This includes completing business registration, securing permits, and adhering to local tax and legal requirements. Lesotho has made notable progress in streamlining its business registration process, reducing the time required to register a business from 15 days to just one day with the establishment of the Lesotho One Stop Business Facilitation Centre (OBFC). Reflecting these improvements, Lesotho scored 76.44 percent in the 2024 World Bank Business Ready Report for business entry, demonstrating strong performance in this area. 

U.S. businesses can utilize SACU and SADC trade blocks with wider markets, more established regulatory framework, and improved business environments. The SACU market product preference has more westernized tastes due to urbanization and exposure to global brands while the SADC market has a stronger preference for locally made products. The SACU market has relatively higher and more stable income levels than the SADC market with lower purchasing power.