INVESTING
IN
LESOTHO
The ABC of Doing Business in
Lesotho
2
INVESTING IN LESOTHO
1. INTRODUCTION
The document provides critical basic issues about doing business in Lesotho. It is intended to guide those
investors who wish to investigate investment opportunities, incentives and investment climate in the
country. The Lesotho National Development Corporation is the first point of contact for investors who
intend to set up projects in the manufacturing and commercial sectors as well as in related support
services sectors in Lesotho.
1.1 INCENTIVES
Tax Rates

0% tax on income generated from exporting manufactured goods outside of the Southern African
Customs Union (SACU)

a permanent maximum manufacturing tax rate of 10% on profits

no withholding tax on dividends distributed by manufacturing firms to local or foreign shareholders

no advanced corporation taxes are paid by companies on the distribution of manufacturing profits

training costs are allowable at 125% for tax purposes

payments made in respect of external management skills and royalties related to manufacturing
operations are subject to withholding tax of 10%

easy repatriation of manufacturing profits

a VAT rate of 14% (ensuring harmonisation with the RSA). Furthermore, the Lesotho Revenue
Authority

has introduced flexible VAT payment systems, to tax compliant firms, to ease cash flows
Tariff Rebates & Duty Free Access to Global Markets

as a member of the Southern African Customs Union (SACU) Lesotho textiles & garment firms are
able to access almost the entire range of SACU rebates. Currently firms make extensive use of the
470.03 rebate in terms of which firms are able to import, free of duty, inputs that are used to make
products for export outside of SACU. A company that sells some of its produce into SACU will only
pay duty on the imported raw materials used to make goods that are sold within SACU

Lesotho manufacturers, by being located in a Least Developed Country (LDC), get duty and quota
free access to the following trading blocks and states :
o SACU (50 million consumers)
3
o USA (295 million consumers) – producers can benefit from AGOA. Importantly, up until
September 2007, Lesotho firms can use fabrics made anywhere in the world in their
garments destined for the US market
o European Union (400 million consumers) – producers can benefit from the Cotonou trade
agreement
o Lesotho producers also have preferential access to Southern African Development
Community (SADC), the Mercosur (South America) trade block, and to Japan, certain
Scandinavia states, Japan, Canada, Australia, and New Zealand
Other Incentives

Lesotho textile & apparel manufacturers can earn Duty Credit Certificates. DCC are tradable
instruments which can be used to offset the duty on fabric and garment imports. DCC earned in
Lesotho can be sold in the SA; firms earning DCC must spend 3% of their total payroll on training
(Lesotho has no training tax)
2.

the LNDC may loan funds to finance projects or take equity investments in projects

the Central Bank of Lesotho provides credit guarantee assistance to exporters
What the LNDC can do for Investors
The Lesotho National Development Corporation, at the request of potential investors, can assist any
investor in establishing a business in Lesotho. The things that the LNDC will do for potential investors
includes:

Getting a Business Started
o Reserve a company name
o Registering a company
o Getting a manufacturing license
o Registering for tax

Immigration Issues
o Visitors visas
o Work permits
o Residence permits
o 6 month border concessions (Lesotho)

Connecting to Utilities
o Electricity
4
o Water
o Telecommunications
2.1 RESERVE A COMPANY NAME
2.1.1
Why
In order to register a company an applicant first has to ensure that the proposed
name of the company has not been used by another firm.
2.1.2
Legislation
Companies Act (1967); as amended by Companies Amendment Act (1984)
2.1.3
Process
Step 1:
Complete an application form;
Step 2:
Submit an application to the Registrar of Companies who is located
in the Ministry of Law, Constitutional & Parliamentary Affairs;
Step 3:
Pay statutory stamp duty upon having been advised that a company
name has been reserved;
Step 4:
Certificate issued that specifies company name that has been
reserved.
2.1.4
Required Information/Documentation
An applicant must submit at least 3 proposed company names in order of preference.
An application form must be completed (see Annex “A”).
2.1.5
Statutory Fees Payable
M5.00 is payable to reserve a company name for 30 days; a further M5.00 is paid in
order to extend the reservation of a company name for a further 60 days.
2.1.6
What the LNDC can do for You
The LNDC will assist applicants to complete an application form and process the
application.
Time: On average the LNDC would take no more than 3 working days to reserve a
name.
5
2.2
REGISTERING A COMPANY
2.2.1
Why
Registration gives a company a separate legal status, and the shareholders
protection of limited liability
2.2.2
Legislation
Companies Act (1967); as amended by Companies Amendment Act (1984)
2.2.3
Process
Step 1: Preparation of Memorandum and Articles of Association;
Step 2: Submit same to the Registrar of Companies who is located in the Ministry of
Law, Constitutional & Parliamentary Affairs
Step 3: Pay stamp duties upon being advised that the application has been
successful
Step 4: Certificate of Incorporation is issued
2.2.4
Required Information / Documentation
The following documentation is required to register a company:

the confirmation of reservation of company name (from 2.1);

a power of attorney from the subscribers wanting to register a company that
allows an attorney to represent them in the registration process;

a Memorandum and Articles of Association signed by each of the subscribers (in
the presence of witnesses). The Memorandum of Association must include: the
name of the company; its main and other objects; a statement that the liability of
the members is limited; names and addresses of subscribers; the amount of the
share capital or guarantee; the number of shares or amount of guarantee for
each subscriber;

details of the registered office (in particular its registered address and contact
details of the proposed company secretary);

a declaration by the attorney that the requirements of legislation have been
complied with;
6
2.2.4
Statutory Fees Payable
Incorporation fee of M12.50 per M100.00, with a minimum of M100.00; stamp duty of
M1.00 per M100.00; a certificate fee of M20.00.
2.2.5
What the LNDC can do for You
The LNDC will assist applicants to prepare Memorandum and Articles of Association.
Should applicants undertake the registration process themselves they would also
have to engage an attorney (estimated total charges, including statutory fees and
attorney charges, could be at least M2,000.00). Should the LNDC assist an applicant
the cost would be around M1,200.00 (including attorney fees and statutory fees).
Time: On average the LNDC would take between 3 to 4 weeks to register a company.
7
2.3
GETTING A MANUFACTURING LICENSE
2.3.1
Why
A manufacturing license gives a company legal authority to commence manufacturing
operations
2.3.2
Legislation
Industrial License Act (1969); and Pioneer Industries Encouraging Act (1969)
2.3.3
Process
Step 1: Complete an application form
Step 2: Pay the statutory application processing fee
Step 3: Submit application to the Director of Industry who is located in the Ministry of
Trade & Industry, Co-operatives and Marketing
Step 4: Applicants will be expected to appear before the Pioneer industries Board
(PIB) in order to motivate the application and answer any questions
Step 5: Pay the statutory annual license fee if the application is successful
Step 6: Manufacturing License is issued
2.3.4
Required Information / Documentation
The following documentation is required to obtain a manufacturing license :

a completed application form (see Annex “C”)

certified copies of the Memorandum of Association, and the Articles of
Association, and the Certificate of Incorporation;

a copy of the proposed lease agreement for the premises where manufacturing
will take place

2.3.5
certified copies of each directors’ identification documents/ passport
Statutory Fees Payable
Application processing fee of M50.00; an annual fee of M1000.00.
2.3.6
Lodging Applications
The LNDC will assist applicants to complete an application form and process the
application.
Time: On average the LNDC would take up to 4 weeks to obtain a manufacturing license
8
2.4 REGISTRATION FOR TAX
2.4.1
Why
All businesses have to register as taxpayers
2.4.2
Legislation
Income Tax Act ([1993], as amended by Act No 2. [1994]; No 10. [1996]; No 11. [2000]);
Value Added Tax Act ([2001], as amended by Act No 6. [2003])
2.4.3
Process
Step 1: Complete an application form
Step 2: Submit application to the Advise Centre Office of the Lesotho Revenue Authority
(LRA)
Step 3: Corporate Tax Clearance Certificate is issued
2.4.4
Required Information / Documentation
The following documentation is required:
Income Tax Registration:

Company Income Tax;

a completed “ Taxpayer Registration Form for Corporate Board” (see Annex “D1”);

certified copies of the Memorandum and Articles of Association;

Certificate of Incorporation;

Manufacturing License;

certified copies of each directors’ identification documents / passport

banking details (for local bank)

Resolution letter
Pay-as-you-Earn (PAYE)

a completed “Employer’s Registration Form” (see Annex “D2”)

certified copies of the Memorandum of Association, the Articles of Association, the
Certificate of Incorporation;

Manufacturing License;

certified copies of each directors’ identification documents /passport;

banking details (for local bank);

a list of all employees, including part-time, casuals, labourers, and temporary staff;

Resolution letter.
9
Income Tax : Self Employed Individuals (see Annex “D3”)

Resident Individuals: a self-employed individual must complete an “Individual Initial
Form” and furnish the LRA with full information about his/her business and personal
details.

Non-Resident Individuals: if the individual is a non-resident an “Individual Initial Form”
must be completed and certified copies of the persons’ work permit and identity
document / passport must be supplied.

Should someone else, rather than an applicant, appoint another person to register a
company for tax a power of attorney is required. Banking details are required
Value Added Tax Registration – Companies:

a completed “VAT 1” and “TIN” registration forms” (see Annex “D4”);

-
certified copies of the Memorandum of Association, the Articles of
Association, the Certificate of Incorporation, and the Manufacturing License;

certified copies of each directors’ identification documents/ passport;

banking details (for local bank);

should someone else, rather than a company director, appoint another person to
register a company for VAT a power of attorney is required;

2.4.5
Details of the company’s Lesotho banking accounts;
Statutory Fees Payable
None
2.4.6
What the LNDC can do for You
The LNDC is prepared to assist industrialists in completing documentation &
processing applications.
Time: On average the LNDC would take about 5 working days within which to register a
company with the LRA.
10
2.5
REGISTERING AS AN IMPORTER
2.5.1
Why
Applicants will need to register should they wish to import and export into and from
the Southern African Customs Union (SACU).
2.5.2
Legislation
Customs & Excise Act (1982)
2.5.3
Process
Step 1: Complete an application form (see Annex “E”);
Step 2: Submit application to the Director of Trade who is located in the Ministry of
Trade & Industry, Co-operatives and Marketing
2.5.4
Required Information / Documentation
The following documentation is required:

a completed application form

certified copies of Memorandum of Association, the Articles of Association, the
Certificate of Incorporation, and the Manufacturing Licence;

certified copies of each company directors’ identity documents/passport;

Should some one else, rather than an applicant, appoint another person to
register a company as an importer a power of attorney is required.
2.5.5
Statutory Fees Payable
None
2.5.6
What the LNDC can do for You
The LNDC is prepared to assist industrialists in completing documentation and
processing an application.
Time: On average the LNDC would take about 3 working days within which to register a
company with the Ministry of Trade & Industry, Co-operatives & Marketing.
11
ANNEX 1
LESOTHO’S MINIMUM WAGES (1 October 2005 – 30 September 2006)
Ref
Sector
Monthly
Weekly
Daily
Wage
Wage
Wage
(Maloti)
(Maloti)
(Maloti)
Clothing, Textile & Leather Manufacturing
A.1.
Textile General Worker
660.00
164.00
35.00
A.2.
Textile Machine Operator – Trained
710.00
177.00
37.00
A.3.
Textile Machine Operator – Trainee
660.00
164.00
35.00
818.00
205.00
43.00
1 442.00
341.00
78.00
Construction
B.1.
Construction worker
B.2.
Construction machine operator
Wholesale & Retail
C.1.
Wholesaler, bakery, supermarket, furniture shop
830.00
207.00
44.00
C.2.
Mini-supermarket, bakeries, cafes
810.00
202.00
43.00
Hospitality Sector
D.1.
Hotels
840.00
215.00
44.00
D.2.
Restaurants & caterers
800.00
200.00
42.00
Service Sector
E.1.
Security guard – trainee
800.00
200.00
42.00
E.2.
Security guard – trained
982.00
245.00
52.00
E.3.
Funeral parlor
818.00
205.00
44.00
F.
Small Business
490.00
122.00
26.00
G.
Domestic Worker
252.00
66.00
15.00
H.
General Minimum Wage
697.00
175.00
39.00
Source: Labour Code Wages Order, 2006 (Supplement No.2 to gazette NO. 49 of 29th September 20060
12
Selected Definitions
“textile general worker” means a person employed in the clothing, textile and leather manufacturing sector
doing all manner of tasks other than textile machine operator;”
“textile machine operator-trained” means a person who operates machinery within the clothing, textile and
leather manufacturing sector and who has completed more than six months within the industry or who has
been certified as such. It also includes a person who operates standard or specialized single or multiple
needle sewing machine in garments, glove and miscellaneous products in textile and kindred material
including show sewing;”
“textile machine operator-trainee” means a person who is a machine operator in clothing, textile and leather
manufacturing industry but who has not completed six months within the industry or who has not been certified
as such;”
“general minimum wage” applies to any person employed in any other sector other than those that appear
herein;”
Note : These wages (A1 – A3) also apply to workers in the footwear industry.
13
LESOTHO’S BASIC CONDITIONS OF EMPLOYMENT
Issue
Summary
Labour Code
Ref.
Core
- discrimination
Prohibited : concerning race, colour, sex, marital status, religion, political opinion,
s5; s200
national extraction
- freedom
Employers & employees allowed to join trade union and/or employer organisation of
s6
association
their own choice
- forced labour
Prohibited
s3; s7
- child labour
Illegal to employ anyone under age of 15. Certain limitations on employment of young
s3; s124 –
persons (under 18)
129
Wages
- Normal
Minimum wages: i. trainee general worker M643.00 per month; ii. trained textile machine Labour Code
operator M686.00 per month; iii. Trainee textile machine operator M643.00 per month
Wages Order
[wef :1 Oct. 2005]
2005
- overtime rates Normal rates x 1.25 (Monday-Friday). For work on rest days (normally Saturday &
s118
Sunday) double wage rate for those that work a normal work week
- piece rate &
Permitted
bonus
- termination
2 weeks pay for each year of completed service with same employer. Benefit not paid
benefits
when worker is fairly dismissed for misconduct. Terminal benefits paid include pro-rata
s79
leave & notice pay
Working
Hours
- normal
45 hours per week (maximum for 5 day a week worker is 9hrs per day; maximum for 6
s117 – 118
day a week worker is 8hrs per day for 5 days, and 5 hours on 1 day)
- overtime
Maximum overtime allowed 11 hours per week. Exemptions under special
s118
circumstances.
- night work
Allowed. Payment set by firm & employee/union agreement; failing which rates set by
s3; s130 –
Minister
131
Employers required to provide (but reasonable cost can be charged to worker) transport
to and from work (to the nearest place within 10km radius of the employees’ place of
employment) for workers working between 8 p.m. and 5 a.m.
Issue
Summary
Labour Code
Ref.
Leave
- annual
12 days paid leave (i.e. 1 days paid leave for each month of service with the same
s120
employer)
- pubic holidays 11 paid days per annum. Public holidays on falling on Sunday do not carry over to
s121
Monday
- sick
1st 6 months of employment all sick leave unpaid
s123
2nd 6 months of employment with same employer (12 days paid leave)
After 1 year with same employer 12 days sick leave on full pay; thereafter sick leave for
up to 24 days (on half pay) for each period of 12 months continuous service
- maternity
- educational
6 weeks prior to birth; and 6 weeks after birth. Employees with 1years continuous
s119(5); s133
service with the same employer shall be paid 2 weeks maternity pay limited to two
– 137
confinements
Labour Code
Employers & employees to agree on paid 1 hour per day baby feeding arrangements for
wages Order
6 months
2005
Employees allowed reasonable paid time-off for training (incl. shop-steward training)
s122
Probation is for a period not exceeding 4 months
S75
leave
Probation
- probation
General
Other
No training levy(firms earning DCC to contribute 3% of payroll for training); no annual
bonus, medical or retirement fund contributions; employers must take out an insurance
policy to cover injuries arising out of industrial accidents (about0.3% of payroll); wages
can be paid by electronic transfer
15
Lesotho Electricity Tariffs 2006
The following are the electricity tariffs (with effect from 1 January 2006 – increases come into effect on 1 January
of each year)
USAGE
TARIFF
MAXIMUM DEMAND CUSTOMERS
(Maloti)
NOTE
 for consumers using electricity entirely/predominantly for
Commercial LV
purposes other than industrial purposes, regularly having a
maximum demand usage of 50kW measured in any 30
-
Demand (kW)
133.3000
minute period in the course of a meter reading period
 a demand charge per kW of the maximum demand for each
-
energy charge
0.0819
(kWh)
meter reading period, with a minimum charge of M1 593.46
per month
 energy charge for all units consumed
 for major non-industrial consumers wanting medium voltage.
Commercial MV
Costs of metering equipment to be borne by consumer
-
demand (kW)
132.6000
 a demand charge per kW for all kW of the maximum demand
for each meter reading period, with a minimum charge of M1
-
energy charge
0.0740
(kWh)
593.46 per month
 energy charge for all units consumed
 for consumers using electricity for industrial purposes who
Industrial LV
regularly have a maximum demand in excess of 25kW
measured in any 30 minute period during the course of a
-
demand (kW)
133.3000
meter reading period
 a demand charge per kW for all the kW of the maximum
-
energy charge
(kWh)
0.0819
demand for each meter reading period, with a minimum
charge of M1 274.70 per month
 energy charge for all units consumed
16
 for major industrial consumers wanting high voltage. All high
Industrial MV
voltage metering equipment must be born by consumers
-
demand
132.6000
 a demand charge per kW for all kW of the maximum demand
for each meter reading period, with a minimum charge of M1
-
energy charge
0.0740
(kWh)
274.70 per month
 energy charge for all units consumed
NOTE :
- LEC encourages consumers to install “power factor correction
equipment” to reduce costs.
- Additional 5% VAT applies to all bills.
Source : Lesotho Electricity Corporation (LEC) : Schedule of Tariffs & Charges (2006)
Lesotho Water & Sewage Tariffs Until 1 April 2006
Standing Charge (For all customers)
M2.81 (nominal account administration fee)
Domestic Customers – Water
Band Rates
A.
0 to 5 Kilolitres
M1.86 per 1 000 litres
B.
6 to 10 Kilolitres
M3.10 per 1 000 litres
C.
11 to 23 Kilolitres
M5.51 per 1 000 litres
D.
above 23 Kilolitres
M7.62 per 1 000 litres
Non Domestic customers- Water
All consumption
M4.44 per 1 000 litres
All types of customers – Sewerage / Industrial Waste Water
Sewerage is charged M3.24 for 85% of water consumed (plus VAT)
17
LNDC FACTORY SHELLS : TYPICAL SPECIFICATION
Structural Frame
Portal or propped portal steel frame primed and coated in gloss enamel.
Roof
“Plain galvanized IBR”. “Sisalation” or “Bubble foil” insulation. No translucent sheeting.
Side Cladding
“Plain galvanized” IBR with steel windows burglar proofed to ventilators only.
Walls
“Approved concrete bricks” faced internally and externally to 1.2m AFFL. Ceramic wall
tiles to kitchen and bathroom splashguards only.
Floor
Reinforced concrete 25Mpa, “Masterplate” floor hardening. Vinyl tiling to workers toilets.
Carpet tiles to offices.
Foundations
Reinforced concrete footings.
Standard Power Supply
M5 – 100kVA (300m2);
M10 – 150kVA (1000m2)
M18 – 200kVA (1800m2);
M20 – 315kVA (2000m2)
M30 – 400kVA (2000m2);
M30 – 400kVA (3000m2)
M40 – 630kVA (4500m2);
M50 – 850kVA (5000m2)
Ventilation
Steel framed windows; ridge ventilators; cooling fans in certain areas.
Fire Fighting
10 kg portable fire extinguishers; 30 m fire hose reels. Sprinkler systems to M30’s, M40’s
, M50’s and larger units in certain cases.
Plumbing & Sanitary
Stainless steel fittings in workers toilets. Vitreous china fittings and hot water plumbing
to senior staff toilets. Under sink hot water geyser to kitchenette and senior staff toilets.
Industrial-type toilet roll holders.
Water Supply
Main incoming 50mm galv. iron; 5000 litre elevated emergency storage tank in certain
areas to ablution only.
18
Roller Shutter Door
Chain operated, minimum height 4.2m AFFL.
Guardhouse
Standard design with fire place but no toilet.
Main Gate
Standard design.
Perimeter Fencing
Galv., welded mesh 2.1m high min; capped round posts and y-standards.
Offices
Dry wall partitioning mezzanine floor on steel frame at a maximum ratio of 125m2 to
1000m2 of factory space.
Showers:
Upon request.
Canteens:
Upon request.
19
LNDC / COMMARK LESOTHO APPAREL TRAINING CO-FINANCING SCHEME
The LNDC / ComMark Lesotho Apparel Project training scheme is aimed at encouraging owners and managers of
textile and clothing firms to train their staff in ways which will increase the productivity, competitiveness and the
profitability of Lesotho’s textile and apparel industry.
It is a co-financed scheme where ComMark (Lesotho) will reimburse the factory an agreed percentage of the
training fee after the training has been successfully completed. The whole training incentive will be available in
annual allocations for three years.
Each year an amount will be allocated to each factory registered with the scheme. This amount will be based on
the number of permanent employees at the factory. This amount will be available to the factory for the next twelve
months to co-finance the training of staff. If a factory does not use its allocation within the allocated time period,
the unused portion reverts back to the scheme.
The co-financed scheme will reimburse factories for approved training fees on a declining basis. In the first year
this reimbursement will be 50% of the fee, in the second year it will be 45% and in the third year 40%.
Money from the Scheme cannot be used for accommodation, transport or similar costs of trainers or trainees. It
may not be used for hiring training facilities, to subsidise for lost wages or income or to buy training equipment. It
must be used for payment to training service providers that are not normally in the full time employ of the
Company. At the scheme’s discretion it may be used to co-finance training manuals and materials.
Staff from ComMark may want to attend or visit some of the training that takes place or may want to interview you
or some of your staff who have been trained.
To benefit from the Scheme you have to:

Be involved in the textile and apparel industry

Be located in the Kingdom of Lesotho

Permanently employ fifty or more employees

Have registered with the Scheme

Agree to abide by the Rules of the Scheme
20
To register for the Scheme:

Complete the registration form

State how many permanent employees you had at the date mentioned

Keep your allocated number and refer to this in all correspondence with the Scheme
To claim from the Scheme:

Source training from a Service Provider that is registered with the Scheme

Obtain a training proposal from the registered Service Provider

Get approval from the Scheme BEFORE the training starts

Hold the training

Pay for the training

Submit the names of the people that were trained

Submit proof that the training took place

Submit proof that you have paid for the training

Provide your company’s bank account details for reimbursement
21
PRINCIPAL ORGANISATIONS ACTIVE IN
LESOTHO’S TEXTILES & APPAREL INDUSTRY
Lesotho National Development Corporation (LNDC)
The Lesotho National Development Corporation is a development finance institution and investment promotion
agency which is in the business of facilitating private sector development and investment inflow into Lesotho. The
LNDC will assist new investors in establishing their businesses; provides investors with significant aftercare once
they have been established; and, rents industrial property to investors.
Chief Executive Officer : Peete Molapo
Street
: 9th Floor, Block A, Development House, Kingsway, Maseru, Lesotho
Post
: Private Bag A96, Maseru 100, Lesotho
Tel
: +266 22312012
E-mail
: info@lndc.org.ls
Web
: www.lndc.org.ls
Fax : +266 22310038
Ministry of Trade & Industry, Co-operatives & Marketing (MTICM)
The Ministry of Trade & Industry, Co-operatives & Marketing is the national government department that is
responsible for the development and management of Lesotho’s industrial and trade policies. The MTICM plays a
role in processing applications for imports and exports, the registration of firms, etc. The Minister of Trade &
Industry chairs the Inter-Ministerial Task Team on Attracting and Maintaining Foreign Direct Investment in
Lesotho’s Textiles & Apparel Industry. This Task Team, which meets at least on a monthly basis, addresses a
range of issues related to Lesotho’s textiles and apparel industry.
Minister of Trade & Industry, Cooperatives & Marketing: The Honourable, Mpho Malie
Ministry Principal Secretary: David Rantekoa
Post
: PO Box 747, Maseru 100, Lesotho
Tel
: +266 22312802
E-mail
: psmticm@leo.co.ls
Web
: www.lesotho.gov.ls
Fax : +266 22310326
22
Ministry of Employment & Labour
The Ministry of Employment and Labour is the government Ministry responsible for formulating and implementing
labour market policies. The Ministry has an inspectorate that is responsible for ensuring compliance with the
country’s labour laws; the Ministry is also responsible for issuing of work permits.
Minister of Employment & Labour: The Honourable Moses Masemene
Labour Commissioner: 'Mamohale Matsoso
Post
: Private Bag A116, Maseru 100, Lesotho
Tel
: Ministry +266 22322602 Tel: Labour Commissioner +266 22322181 Fax: +266
E-mail
: Labour Commissioner : labcom@leo.co.ls
Ministry of Home Affairs & Public Safety
The Ministry of Home Affairs & Public Safety is the government Ministry responsible for issuing residence permits,
and all other matters related to border controls.
Minister of Home Affairs & Public Safety: The Honourable Archibald Lehohla
Ministry Principal Secretary: Lefa Mokotjo
Post
: PO Box 174, Maseru 100, Lesotho
Tel
: Ministry +266 22323771 Tel: Principal Secretary: +266 22323526 Fax: +266 22310587
23
Lesotho Textile Exporters’ Association (LTEA)
The Lesotho Textile Exporters’ Association is a national organisation which represents the majority of Lesotho’s
textile and garment exporters. The LTEA regularly interacts with all branches of the Government of Lesotho, and
with a range of other Lesotho stakeholders (e.g. trade unions, utility companies, etc).
President : Jennifer Chen
Post
: PO Box 15507, Maseru 100, Lesotho
Tel
: +266 22321823
E-mail
: jennifer.chen@carrywealth.com
Fax : +266 22321877
Lesotho Industrial Employers’ Association
The Lesotho Industrial Employers’ Association (LIEA) is a regionally based employers’ organisation whose
membership is concentrated in the towns of Maputsoe and Ha Nyenye. LIEA is affiliated to the Association of
Lesotho Employers.
President: John Lyon
Post
: PO Box 1463, Maputsoe 350, Lesotho
Tel
: +266 22430303
E-mail
: john.lyon@reebok.co.za
Fax : +266 22430012
Association of Lesotho Employers (ALE)
The Association of Lesotho Employers is a national employers association with some members who are active in
Lesotho’s textile and garment sector.
Executive Director: Advocate Makeka
Post
: PO Box 1509, Maseru 100, Lesotho
Tel
: +266 22315736
E-mail
: alemp@leo.co.ls
Fax : +266 22325384
24
Factory & Allied Workers’ Union (FAWU)
The Factory & Allied Workers’ Union is the largest trade union active in Lesotho’s textiles and apparel industry. In
an audit of trade union membership (mid-2005) FAWU was said to have 10 265 members.
General Secretary: Macaefa Billy
Post
: PO Box 2433, Maseru 102, Lesotho
Tel
: none
Fax : +266 22317635
Cell GS : +266 62771744
E-mail
: fawu@leo.co.ls
Lesotho Clothing & Allied Workers’ Union (LECAWU)
The Lesotho Clothing & Allied Workers’ Union is the second most representative trade union active in Lesotho’s
textile and apparel industry. In an audit of trade union membership (mid-2005) LECAWU was said to have 5 332
members.
General Secretary: Daniel Maraisane
Post
: PO Box 11767, Maseru 100, Lesotho
Tel
: +266 22320958
Fax : +266 22310412
Cell GS : +266 58700696
E-mail
: lecawu@lesoff.co.za
25
ComMark
ComMark is a development project of the British Government’s Department for International Development (DFID).
ComMark’s Lesotho textile and apparel intervention aims to assist all Lesotho stakeholders to become more
competitive with the ultimate aim of assisting Lesotho’s poor. ComMark is located within the offices of the LNDC.
Programme Manager: Andy Salm
Long Term Technical Assistant: Mark Bennett
Training Programme Manager: Mantai Kulehile
Street
: 6th Floor, Block A, Development House, Kingsway, Maseru, Lesotho
Post
: Private Bag A96, Maseru 100, Lesotho
Tel
: +266 22312012
E-mail
: mark.bennett@leo.co.ls
Web
: www.commark.org
Fax : +266 22310038
Administrator Duty Credit Certificate Scheme (DCC)
While the issuance of Duty Credit Certificates is the responsibility of the Ministry of Trade & Industry Co-operatives
& Marketing, the administration is outsourced to a private sector provider – Baffoe & Associates. Any extra-SACU
exporter wanting to participate in the scheme must register with the Administrator; all claims will be processed by
the Administrator.
DCC Administrator:
Frank Baffoe
Post:
PO Box 7590, Maseru 100, Lesotho
Tel :
+266 22312269
E-mail
:
Fax: +266 22319738
b&a-holdings@ilesotho.com
Lesotho Revenue Authority (LRA)
The Lesotho Revenue Authority is the organisation that collects all taxes and is responsible for customs
administration. The LRA has a help desk at its head office which is able to assist taxpayers.
Post :
PO Box 1085, Maseru 100, Lesotho
Tel
:
+266 22323796
Fax
:
+266 22312091
Toll Free:
8002 2006
E-mail :
info@lra.org.ls
Web site:
www.lra.org.ls
26
DOING BUSINESS IN LESOTHO
Lesotho Public Holidays 2006
Day
Date
New Year’s Day
Sunday
01 January 2006
Moshoeshoe’s Day
Saturday
11 March 2006
Good Friday
Friday
14 April 2006
Easter Monday
Monday
17 April 2006
Worker's Day
Monday
01 May 2006
Ascension Day
Thursday
25 May 2006
Heroes Day
Thursday
25 May 2006
King’s Birthday
Monday
17 July 2006
Independence Day
Wednesday
04 October 2006
Christmas Day
Monday
25 December 2006
Boxing Day
Tuesday
26 December.2006
Note: Public holidays falling on a Sunday do not become a public holiday on the following Monday
Lesotho Working Hours
Civil Service working Hours
Generally 08h00 to 16h30. Lunch break mainly between 12h45 and 14h00
Lesotho Revenue Authority
Generally 08h00 to 17h00.
Commercial Sector
Generally 08h00 to 17h00
Manufacturing
Generally 07h00 to 17h00. Lunch break in garment sector mainly between 12h00 and 13h00
27
Commercial Banks
Weekdays: generally between08h30 and 15h30
Saturdays: generally between 08h30 and 11h00
28
LESOTHO’S : TELECOMMUNICATIONS & INTERNET SERVICES
Telecommunications
Telecom Lesotho (fixed line service provider)
Physical Address
: Kingsway (Opposite Main Post Office), Maseru, Lesotho
Postal Address
: PO Box 1037, Maseru 100, Lesotho
Tel
: +266 22211000 / 22211624
Fax
: +266 22211170 / 22211705
Web site
:
www.telecom.co.ls
Vodacom Lesotho (cellular service provider)
Physical Address
: Block B, 7th Floor, LNDC Development House, Kingsway, Maseru, Lesotho
Postal Address
: PO Box 7387, Maseru 100, Lesotho
Tel
: +266 22212000
Fax
: +266 22311079 / 22311187
Web site
:
www.vcl.co.ls
EcoNet Ezicel Lesotho (cellular service provider)
Physical Address
: Agricultural Bank Building, Kingsway, Maseru, Lesotho
Postal Address
: PO Box 15511, Maseru 100, Lesotho
Tel
: +266 22214800
Fax
: +266 22327858
E-mail
: customercare@eel.co.ls
Web site
: none
Internet
LEO
Physical Address
: Taoana Centre, Orpen Road, Maseru, Lesotho
Postal Address
: PO Box 11072, Maseru 100, Lesotho
Tel
: +266 22322772
Fax
: +266 22317816
Web site
:
www.leo.co.ls
Note: Leo can also assist in registering an internet domain name.
29
iLesotho / Comnet
Physical Address
: 4 Tulley Road, Maseru, Lesotho
Postal Address
: PO Box 1045, Maseru 100, Lesotho
Tel
: +266 22317645
Fax
: +266 22317920
E-mail
:
Web site
:
www.ilesotho.com
Lesotho Telecom
Also offers internet services (including broadband)
NOTE : All of the above, while being headquartered in Maseru, most are able to offer services in other parts of
Lesotho.
30
LESOTHO’S BANKING SECTOR
Central Bank of Lesotho
Physical Address
: Corner Airport & Moshoeshoe Roads, Maseru, Lesotho
Postal Address
: PO Box 1184, Maseru 100, Lesotho
Tel
: +266 22314281 / 22324281
Fax
: +266 22310051 / 22310679
E-mail
: cbl@centralbank.org.ls
Web site
: www.centralbank.org.ls
Lesotho Bank
Physical Address HQ
: Lesotho Bank Tower, Kingsway, Maseru, Lesotho
Postal Address
: PO Box 1053, Maseru 100, Lesotho
Tel
: +266 22315737
Fax
: +266 22317321
Swift code
: SBICLSMX
E-mail
: matsosot@stanbic.com
Branches
: Maputsoe; Maseru; Mafeteng; Mohales Hoek
First National Bank (Lesotho) - FNB
Physical Address HQ
: Shop 4, LNDC Building, Kingsway, Maseru, Lesotho
Postal Address
: PO Box 11902, Maseru 100, Lesotho
Tel
: +266 22222200
Fax
: +266 22222222
Swift code
: FIRNZAJJ
E-mail
: maseru@fnb.co.za
Branches
: Maseru
31
Standard Bank (Lesotho)
Physical Address HQ
: 1st Floor, Standard Bank Building, Kingsway, Maseru, Lesotho
Postal Address
: PO Box 115, Maseru 100, Lesotho
Tel
: +266 22312423
Fax
: +266 22310235
Swift code
: SBICLSMX
E-mail
: khoabanem@stanbic.com
Web site
: www.standardbank.co.ls
Branches
: Maseru; Mafeteng; Mohales Hoek
Nedbank (Lesotho)
Physical Address HQ
: Nedbank Building, Kingsway, Maseru, Lesotho
Postal Address
: PO Box 1001, Maseru 100, Lesotho
Tel
: +266 22312696
Fax
: +266 22310025
Swift code
: NEDLLSMX
E-mail
: imakeka@nedcor.com
Web site
: www.netbank.co.ls
Branches
: Maputsoe; Maseru; Mafeteng; Mohales Hoek
32
MANAGING YOUR LESOTHO APPAREL ORDERS
Should a Brand or retailer want to source apparel products from Lesotho they may want to appoint, for comfort, a
sourcing house which can supervise the production of their orders. There are a number of Southern African
regional sourcing agencies that have built-up considerable experience in overseeing all aspects of orders being
undertaken in Lesotho.
African Sourcing
Based in Durban, African Sourcing specializes in sourcing the correct factories for the right clients, having account
managers / merchandisers co-coordinating the day-to-day communication between the factories and client,
thereby being the eyes and ears for the client in the region. African Sourcing has a team of Quality Auditors
stationed in Lesotho (a head QA, and in-line inspectors giving daily progress reports), while its executive
management visit Lesotho at least once a week). They specialize in woven and denim bottoms, and knits including
polar fleece, and other man-made items which carry high duty into the USA.
Contact : Don Collopy
Chantel Collopy
: cell +27 82 6544555;
e-mail : don@africansourcing.com
: cell +27 82 8918000; e-mail : chantal@africansourcing.com
Address : 719 Currie Road, Durban 4001, KwaZulu-Natal Province, South Africa
Tel
: +27 31 2099973 (work) +27 31 2093773 (after hours)
Fax : +27 31 2078795
Cool Ideas
Cool Ideas was established in early 2003 by Belinda Edmonds and Chris Wynne-Potts who have between them
25 years experience in Southern Africa's textile and garment industries. Cool Ideas offers customised service
packages to meet customer requirements from basic Quality Audit services to full package FOB sourcing – current
USA customers include Russell Corporation and Kids International. It has QA staff placed in Ficksburg (adjacent
to Lesotho) ensuring continual QA presence in all factories in which its customers have production. This is
reinforced through regular and frequent on-site visits by experienced, dedicated and professional merchandising
teams and management.
Contact : Belinda Edmonds
Chris Wynne-Potts
: cell +27 82 9040599; e-mail : Belinda.edmonds@cideas.co.za
: cell +27 82 8814635; e-mail : potts@netdial.co.za
Address : 1st Floor Fay Fenn House, 3 Haygarth Road, Kloof 3610, KwaZulu-Natal Province, South Africa
Tel
: +27 31 7646580
Fax : +27 31 7646581
33
Intertek Testing Services
Intertek, based in Cape Town, South Africa, assist firms to identify, control and monitor quality concerns and
related issues during production and before shipping. Intertek undertakes the following kinds of inspection
activities : factory evaluation, pre-production inspection, fabric inspection, during production inspection, final
random inspection of finished goods, loading supervision, production & delivery monitoring, etc.
The testing laboratory also offers and extensive range of textile testing services for the American, European and
local markets.
Contact (Inspection & Auditing)
: Sabrina Lane : +27 83 4510488; e-mail sabrina.lane@intertek.com
Contact (Textile Testing)
: André van Zyl : +27 21 4157000; e-mail andre.vanzyl@intertek.com
Address : 9th Floor, 2 Long Street, Cape Town, 8001, Western Cape Province, South Africa
Post
: PO Box 8379, Roggebaai, 8012, Western Cape Province, South Africa
Tel
: +27 21 4157000
Fax
: +27 21 4185127
34
GETTING TO LESOTHO
AIR
Johannesburg International Airport to
Bloemfontein Airport
Moshoeshoe International Airport
SA Airlink flies from Johannesburg to Moshoeshoe
A number of South African airlines (SAA, SA Airlink,
airport daily (Moshoeshoe is approximately 30 km
Comair) fly to Bloemfontein on a daily basis from
from the Maseru CBD). The flight takes 70 minutes.
Johannesburg, Cape Town, Durban and Port
Bookings : www.flysaa.com
Elizabeth. Once in Bloemfontein it is a 155km road
trip to Maseru.
ROAD
Road : Johannesburg to Maseru (430km)
Road : Durban to Maseru (550km)
Leave JHB on the N1 South towards Bloemfontein.
Take the N3 until Harrismith (in the Free State) turn
Pass Kroonstad and at Ventersburg turn left onto the
left onto the N5. About 5km out of Harrismith turn left
R70. Drive past Senekal and take the Marquard road
onto the R74; after about 10km the R74 becomes the
(R707). At Marquard turn left onto the R708.
R712. Pass Phuthaditjhaba and drive through the
Immediately after you pass the town of Clocolan, turn
Golden Gate National Park until you get to Clarens.
right onto the R26. About 4km after Ladybrand turn
At Clarens turn left onto the R711. At the town of
left onto the N8 and you will reach the Maseru Bridge
Fouriesburg turn left onto the R26. If you are going to
border post in about 14km.
Maputsoe cross the RSA-Lesotho border at
Ficksburg; if you are going to Maseru carry on onto
Ladybrand. About 4km after Ladybrand turn left onto
the N8 and you will reach the Maseru Bridge border
post in about 14km.
Road : Bloemfontein to Maseru (155km)
Road : East London to Maseru (570 km)
If at the airport turn left onto the N8, pass the towns of Take the N6 to Aliwal North. About 31km outside of
Botshabelo and Thaba Nchu. About 58km after
Aliwal North (at the town of Rouxville) turn right onto
Thaba Nchu the N8 will veer to the right. After about
the R26. Pass the towns of Zastron, Wepener and
14km you will reach the Maseru bridge border post.
Hobhouse until you reach the N8. Turn right onto the
N8, after 12km the N8 veers right. You will reach the
Maseru Bridge border post in about 14km.
35
Road : Cape Town to Maseru
Take the N1 to Bloemfontein. At Bloemfontein turn
onto the N8 (see Bloem to Maseru route above).
Car Hire :
The following car hire companies operate in Maseru.
Avis
: Tel : +266 22320087; fax : +266 22320087
web : www.avis.co.za
Budget : Tel : +266 22316432; fax : +266
web : www.budget.co.za
Imperial : Tel : +266 22350292; fax : +266 22250290
web : www.imperialcarrental.co.za
NOTE
: Car hire companies sometimes charge excessive car rental fees if a vehicle is picked-up in Lesotho
and then dropped-off in South Africa (and vice versa).
Maseru Taxis :
- if you are staying at the Lesotho Sun they run a free shuttle service to and from Moshoeshoe International
airport.
- Mike-the-Taxi picks-up passengers on every flight coming into and leaving from Moshoeshoe International
Airport. Cost M50.00. Contact Mike on: +266 58855527.
- Moonlight Taxis run a door-to-door taxi service within Maseru. The standard fee is between M20.00 and
M25.00 per trip. Moonlight may be contacted on: +266 22312695.
36
WHERE TO STAY IN LESOTHO
MASERU SUN HOTEL
LESOTHO SUN HOTEL
12 Orpen Road
Hilton Road
Old Europa
Maseru
Maseru
Lesotho
Lesotho
Central Reservations : +27 11 7807860
Central Reservations : +27 11 7807800
Tel
: +266 22312434
Tel
: +266 22313111
Fax
: +266 22310158
Fax
: +266 22310104
E-mail : maseru@sunint.co.za
E-mail : lesoresv@sunint.co.za
Web
: www.suninternational.com
Web
: www.suninternational.com
Post
: Private Bag A84, Maseru 100, Lesotho
Post
: Private Bag A68, Maseru 100, Lesotho
NOTE: The Maseru Sun offers LNDC guests
NOTE: The Lesotho Sun runs a shuttle service to
preferential tariffs, and runs a shuttle
and from Maseru’s airport.
service to and from Maseru’s airport.
VICTORIA HOTEL
LANCERS INN HOTEL
Kingsway Road (opposite Basotho Hat)
Cnr, Kingsway & Pioneer Roads
Maseru
Maseru
Lesotho
Lesotho
Reservations : +266 22313687
Reservations : +266 22312114
Fax
Fax
: +266 22313687
: +266 22310223
E-mail : hotelvictoria@leo.co.ls
E-mail : lancers-inn@ilesotho.com
Web
: none
Web
: none
Post
: PO Box 9740, Maseru 100, Lesotho
Post
: Private Bag A216, Maseru 100,Lesotho
37
LADYBRAND : Places to Stay
20km from Maseru – border post open 24 hours
Web site : Free State Provincial Government – Tourism
(see : www.dteea.fs.gov.za)
- click tab “accommodation” (top of screen)
- keep view “all types of accommodation”
- under “area / location” select Ladybrand, click “GO”
FICKSBURG : Places to Stay
3km from Maputsoe / 10km from Ha NyeNye – border post open 24 hours
Web site : Free State Provincial Government – Tourism
(see : www.dteea.fs.gov.za)
- click tab “accommodation” (top of screen)
- keep view “all types of accommodation”
- under “area / location” select Ficksburg, click “GO”
38