Distribution channels are in the form of distribution and sales outlets throughout the country.  South African firms dominate the retail and wholesale sectors.  Most manufacturers distribute their products to wholesalers in Lesotho, who distribute goods to retailers through their chain outlets across the country.  Other manufacturers have sales agents who have bonded warehouses to store the products, which are later dispatched to retailers.

Lesotho has air, road, and railway links to South Africa.  Distributors use any of these modes to transport products from manufacturers to wholesalers or sales agents in Lesotho.

Value Added Tax (VAT) at the rate of 15 percent is levied at every stage from producer to consumer, but the final burden is borne by the consumer since producers are allowed to claim back input VAT.