ABOUT THIS COUNTRY
Lesotho, a high-altitude, landlocked kingdom encircled by South Africa, is crisscrossed by a network of rivers and mountain ranges including the 3,482m-high peak of Thabana Ntlenyana. On the Thaba Bosiu plateau, near Lesotho’s capital, Maseru, are ruins dating from the 19th-century reign of King Moshoeshoe I. Thaba Bosiu overlooks iconic Mount Qiloane, an enduring symbol of the nation’s Basotho people.
The economy of Lesotho is based on agriculture, livestock, manufacturing, mining, and depends heavily on inflows of workers’ remittances and receipts from the Southern African Customs Union (SACU). Lesotho is geographically surrounded by South Africa and is economically integrated with it as well.
Reasons to invest in Lesotho:
- Lesotho has an estimated population of 1.97 million comprising mostly of younger population (less than 25 years) which makes up about 50.6% of the population, those in the age bracket of 25-64 years makes up about 43.8% of the population and above 65 years age group makes up about 5.6% of the population.
- The country’s geographical position provides investors with access to the regional market (SADC) of 16 countries with an estimated 200 million population and GDP of $600bn.
- The textile and garment industry are the country’s largest private sector employer as garments produced are usually exported to South Africa and the US.
- Main exports include clothing, footwear, diamonds, electricity, wool and mohair, food and live animals etc. Major imports include petroleum product, foodstuff, machinery, medicine, building materials, vehicles etc
- Lesotho’s charming landscape and snow-covered mountain slopes, ideal for skiing, foster tourism. Investment opportunities are available in the following sector agro industry, manufacturing, renewable energy, mining, infrastructure and construction, ICT, financial services, and tourism.
Textile and Apparel
Water
Diamond Mining
Textile and Apparel
- Lesotho garment firms specialise in the production of denim garments (mainly jeans and garments made from cotton knit fabrics, such as t-shirts and leisure wear). It is estimated that Lesotho’s 42 apparel firms each year make 90 million knitted garments, 26 million pairs of jeans per year! The Formosa denim mill uses African cotton to make a minimum of 6,300 tons of denim fabric a year, and about 10,800 tons of cotton (and cotton blends) yarns which is suitable to make knit fabrics.
- The industry is now the largest formal sector employer in the country, employing more than 38,000 people.
- Lesotho continues to remain the largest sub-Saharan exporter of garments to the USA, with an estimated 85% of total exports going there. Purchasers of Lesotho’s garments include well known brands such as: GAP, Reebok, Levi Strauss, Ralph Lauren, Walmart, Calvin Klein Jeanswear and J.C. Penney, amongst others.
- The Edun clothing line, a socially conscious clothing company created by Ali Hewson, Bono and New York clothing designer, Rogan Gregory, operates in Lesotho. Hewson’s goal is to build a business that makes beautiful clothing in developing countries, giving sustainable employment and providing trade potential.
Water
- Water is Lesotho’s most important natural assets as well as being the country’s largest single source of foreign exchange earnings and otherwise known as ‘White Gold’. Lesotho is one of the most important catchment areas in southern Africa. Rainfall together with winter snowfalls provides an estimated 5.5 billion cubic metres of water annually, and renewable groundwater resources some 340 million cubic metres a year.
- Supplying the Republic of South Africa with millions of cubic metres of water per year, the Lesotho Highlands Water Project (LHWP) is the largest and most ambitious long term water scheme of its kind in the continent, and has done much to develop the region’s water supply. The Lesotho Highlands, with its high rainfall and surface area of high basalt mountains – the Maloti – is an outstanding catchment area.
- Bottled water is also considered a food product internationally, thus investment in water bottling is necessary since this would result in a positive impact on public health in the region, by providing safe drinking water and soft drinks in areas with poor water supply quality.
Diamond Mining
- In present-day Lesotho, the exploitation of diamonds occurs in the Maluti range of mountains in the north-east of the country. Lesotho has several diamond dealers as well as two diamond cutting enterprises.
- The Lets’eng Diamond Mine, jointly owned by the Gem Diamond Mining Company of Africa and the Lesotho government, reopened in 2003 and is the highest diamond mine in the world, at over 3km above sea level. The mine produces the highest proportion of large stones of any mine in the world and is famous for its high quality 100 plus carat stones. In 2006, the biggest diamond to be found in 13 years, the “Lesotho Promise,” at 603 carat (120 grams) was found at Lets’eng. This was the 10th largest white diamond ever to be found in the world.
- In 2006, an agreement was concluded between the Lesotho Government and Kao Diamond Mine Ltd, regarding a Mining Agreement and Lease diamond operation in one of the largest of several kimberlite pipes in Lesotho, the 20ha Kao pipe. Other diamond mines are also in existence.
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