Lesotho is completely landlocked by South Africa, and therefore, businesses in Lesotho can only access world markets using South African ports and other infrastructure.  Given its small economy and geography, Lesotho would greatly benefit from deeper regional economic integration via SACU and SADC. 

Employers often cite low productivity, especially in the manufacturing sector, as one of their major operational challenges.  The impact of the HIV epidemic is also a serious challenge for employers and employees alike.  Some employers in the garment industry have overcome this challenge by having a medical clinic on site so workers do not need to take as much leave for regular medical treatment. 

The business community in Lesotho also cites the lack of adequate physical infrastructure, such as good road infrastructure and electricity.
Lesotho currently has no investment law.  The Companies Act of 2011, the Financial Act of 2012, and the 2015 National Investment Policy of Lesotho, however, provide guidance on the foreign investment playbook.  Investment treaties also govern conduct toward the entry of foreign investment.

Foreign investors cited the Business Registration and Licensing Act of 2019 which prefers local businesses over foreign owned as a hinderance to optimal operations.
Foreign investors also raised concern regarding manual business systems and a lack of standardized business procedures which enables a permissive environment for corruption.