Business in Lesotho: Your Essential Guide
HLB Lesotho
Doing Business in Lesotho: An Emerging Opportunity in Southern Africa
Lesotho, a vibrant lower-middle-income nation nestled within Sub-Saharan Africa, is gradually solidifying its position as a viable destination for business. Known for its mountainous landscapes and unique geographical location, Lesotho presents opportunities for both local and international investors seeking entry into Africa's emerging markets.
Why Consider Lesotho for Business?
Lesotho ranks 122nd in the Doing Business report by the World Bank 2020, performing impressively on aspects such as ease of trading across borders-ranking 40-and ease of starting a business-ranking 84. Following is the key highlight of the business environment:
- Ease of Starting a Business
- Entrepreneurs can set up a limited liability company in Lesotho in as little as 15 days, requiring six procedures.
- There is no requirement for a paid-in minimum capital. Entry is thus particularly appealing to small and medium enterprises.
- Competitive Tax Environment
- Compared to regional countries, corporate tax rates and regulatory processes are moderate, hence making Lesotho more attractive to businesses.
- Strategic Trade Potential
- Lesotho's integration into regional economies, such as the South African economy, creates access to a broader market.
- Compliance at borders is very efficient, with low costs, therefore facilitating the exportation of goods from Lesotho.
- Investment in Infrastructure
- Infrastructure bottlenecks persist, especially in terms of access to electricity and the registering of property. Ongoing reforms, though-especially in land administration-point to commitment to improvement.
Challenges to Address
While Lesotho boasts many advantages, challenges such as the reliability of electricity and the cost of construction permits may require strategic planning. Potential investors are encouraged to leverage local expertise and engage with the Lesotho National Development Corporation (LNDC) for guidance.
Lesotho is ripe for entrepreneurs ready to take advantage of its emerging market. From agriculture to textiles, manufacturing, the potential is great, especially for businesses that align with national priorities for sustainable development.
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