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
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Selling Factors & Techniques
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Lesotho, with a population of approximately 2.3 million, offers a relatively small market with limited purchasing power, particularly in rural areas. The Business Licensing and Registration Act of 2019 and its 2020 Regulations reserve 47 business categories for indigenous Basotho, while allowing foreign investors to participate as minority shareholders with a maximum 49 percent ownership. Foreign investors must provide proof of a $123,152 investment — either through direct investment or a deposit with a local institution — at the time of registration or license renewal. In addition, foreign investors are required to renew their business identification card annually. Under the Land Act of 2010 and Land Regulations of 2011, foreign investors may hold land titles provided that at least 20 percent of the company is locally owned.  

Trade Promotion and Advertising

Lesotho does not have a national advertising body. The advertising and marketing sector is at nascent stage, but Lesotho has demonstrated growth in the past decade. A 2013 World Economic Forum’s Global Competitiveness Report scored Lesotho 2.8 out of 7 in terms of marketing, which was below the global mean of 4.1, Lesotho was ranked 131 out of 144 countries. The 2019 report boosted Lesotho ranking to 94 out of 141 countries and scored the country at 3.6. This reflects an improvement in marketing and advertising tools and techniques. The Limkokwing University of Creative Technology introduced a degree in advertising which is expected to enhance services in this area. Radio, television, newspaper, billboards, and sponsored sports events advertising are the most common promotion tools for new and existing products and services. Social media and e-mail marketing is becoming increasingly popular, especially for services.

Resources: Commonwealth: https://www.commonwealthofnations.org/.

Pricing

Lesotho charges 15 percent Value Added Tax (VAT) on all most all imports. Shipments below $27 may not attract customs duties. The Revenue Services Lesotho governs the customs services and aligns its procedures with SACU.

Sales Service/Customer Support

Customer support services in Lesotho are developing but limited in scope and consistency, particularly in sectors like logistics and retail. The level of service often varies based on whether the provider is international or local.  International companies offer structured customer service aligned with global protocols. These companies provide dedicated customer service lines during business hours Monday –Friday, 8:00- 17:00. Local firms provide less formal and less reliable customer support services.  Sales representatives are common in communications, banking and transport sectors while pre-and after sale support are minimal.

Local Professional Services

Local professional services include business advisory and accounting services, infrastructure, digital solutions, health and legal services. Professional associations include the Law Society of Lesotho, Lesotho Medical Association, Lesotho Nurses Association, and the Lesotho Institutes of Accounts.

Principal Business Associations

Principal Business Associations in Lesotho include the Lesotho National Development Corporation, tasked with the responsibility of promoting trade and investment in Lesotho. The Private Sector Foundation of Lesotho promoted dialogue between the private sector and the government. The Lesotho Chamber of Commerce and Industry, Association of Lesotho Employers and Business, and the Lesotho Textile Exporters Association are businesses associations which represent private sector’s issues with the government. The associations often influence the government’s decisions and policy direction.

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