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Why invest in Lesotho


Lesotho has a stable social and political environment which is investor friendly, and a free enterprise and free market economic system which form the basis for sustained development and growth.


Young, abundant, predominantly English speaking, literate, and well motivated labour force, with a tradition of manual dexterity at competitive wage rates.


Tax incentives

Zero percent (0%) corporate tax on profits earned by manufacturing companies exporting outside SACU, ten percent (10%) preferential corporate tax on profits earned on exports within SACU, and a normal corporate tax rate of twenty-five percent (25%). There is no withholding tax on dividends distributed by manufacturing companies to local or foreign shareholders. Double taxation agreements have been concluded with the Republic of South Africa and the United Kingdom.

Financial & export incentives

These include an export finance facility; long-term loans and/or equity participation; unimpeded access to foreign exchange; free repatriation of profits; input credit for all capital equipment and raw material inputs; and zero-rated exports under the Lesotho VAT system. Furthermore, manufacturing exporters are able to run bank administered foreign currency accounts at any of the banks in Lesotho. Training costs are allowable at 125 percent for tax purposes.

Lesotho Duty Credit Certificate (DCC) scheme

Conditions for participating in the scheme are that a company must manufacture within SACU and export its textile or clothing products outside the area. The DCC scheme gives a rebate on import duty based on the value of goods exported. A firm may use the duty credit for not paying duty on the next shipment of imported raw materials or sell it through a broker to another importer.

For information contact

LDCC Administrator
tel (+266) 22 312 269
fax (+266) 22 310 167
e-mail b&.

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