The Government of Lesotho (GOL) took initiatives in 2003 to improve the investment climate in the country by setting in motion the Investment Policy Review process (IPR) facilitated by the United Nations Conference on Trade and Development (UNCTAD). This exercise culminated in a dialogue on the 1st draft of the report by all stakeholders.
At the top of the list was the review of Lesotho's investment policy with special focus on the attraction of foreign direct investment. A draft follow-up report was publicized with strong recommendation on the improvement of the country's legal and regulatory environment, with particular emphasis on the land tenure system, industrial licensing, business taxation and value added tax, foreign exchange regulation and competition law.
Another related recommendation mentioned mentioned in the report was the institutional reinforcement of the (Lesotho National Development Corporation) LNDC Investment Promotion Centre. UNCTAD would finalise the implementation work plan with the GOL.
Closely related to the above, and also an UNCTAD Project commissioned by the GOL, was the commencement of Good Governance in Investment Promotion and Facilitation. The first phase of the project entails capacity building on investment promotion in five (5) Least Development Countries (LDC's), namely; Ethiopia, Lesotho, Maldives, Mali and the United Republic of Tanzania. Emphasis would be on streamlining investment procedures, processes and practices with a view to promoting accountability, predictability and transparency in institutions that deal with investor.
Successful completion and implementation would assist Lesotho in applying "best practices" in investment promotion and result in attracting more investment into the country.
GOL has designated LNDC as the cooperation agency for the project. Mr. Richard Mbonye, a Financial and Human Resource Management Consultant engaged by the UNCTAD, started in-house training of the LNDC staff. This training was part of a larger exercise that included the design, launching and use of the client charters by all public institutions and departments dealing with investment promotion and facilitation matters.
For more information on trade and investment opportunities in Lesotho, kindly visit the following web sites:
TRADE AND INVESTMENT IN LESOTHO
CENTRAL BANK OF LESOTHO
MINISTRY OF TRADE, INDUSTRY AND MARKETING
