Trade Leads
Investment and export opportunities exist in construction, hydroelectric power generation, aqua farming, diamond mining, manufacturing, and tourism.
Construction, hydroelectric power generation, aqua farming: Lesotho is the source of all major rivers in neighboring South Africa. The second phase of the country‟s multi-billion-dollar Lesotho Highlands Water Project (LHWP), which was initiated in 1986, is expected to start in 2013, and is expected to roughly double the production of electricity for Lesotho and increase water transfer to South Africa. The project is designed to capture, store, and transfer water from the Orange River system and send it to South Africa's Free State and greater Pretoria-Johannesburg capital region. Opportunities exist for U.S. companies in construction. There are investment and export opportunities for aqua farming and tourism at the three dams that were built as part of the first phase of the LHWP.
Manufacturing: Lesotho has taken advantage of the African Growth and Opportunity Act (AGOA) to become one of the largest exporters of garments to the U.S. from sub-Saharan Africa. Exports are estimated to have totaled $374 million in 2008. Employment in the garment factories reached 45,000 in 2008, but has declined to around to 36,000 due to the challenges brought about by the global financial crisis. Lesotho‟s 19 garment factories are primarily owned by East Asian manufacturing conglomerates and their focus has been in the manufacturing of garments and textiles mainly. This means opportunities still exist for Lesotho to take maximum advantage of the AGOA provisions.
Diamond mining: Mining has been revived by the reopening of three commercial diamond mines, namely Lets‟eng Diamonds, Liqhobong, and Kao diamond mines. Four diamond prospecting licenses have been issued for prospecting in different areas of the country. The Department of Mines and Geology and investors currently operating mines in Lesotho believe there is high potential for the mining industry with the possibility of more kimberlite pipes to be discovered.
Tourism: Existing and prospective LHWP dams create a notable opportunity for water-based sporting and recreational activities. Another major unique feature of the country is altitude; Lesotho is the only country in the world which lies entirely above 1000m above sea level. In fact, the lowest point in Lesotho 1400m above sea level. Thus Lesotho is an ideal location for high altitude sports training facility. The country is also under-supplied with accommodation facilities of appropriate standards particularly at key and strategic tourism nodes. Tourists from South Africa cross into Lesotho for the day, only to go back and sleep in South Africa. There is therefore a pressing need for development of accommodation.
http://www.ltdc.org.ls/investments.php
While no investment code as such exists in Lesotho, incentives available to investors are set out in the legislation and investors‟ rights are protected by the nation‟s constitution. Lesotho is a signatory to the International Centre for Settlement of Investment Disputes (ICSID), which allows for foreign investors to gain international jurisdiction in legal disputes concerning investment in Lesotho (however, the U.S. and Lesotho have not signed a bilateral investment treaty (BIT) guaranteeing access to international arbitration). Lesotho is also a member of the Multilateral Investment Guarantee Agency (MIGA).
