The Business Licensing and Registration Act of 2019 and the Business Licensing and Registration Regulations of 2020 reserve 47 businesses for indigenous Basotho while foreign investors are allowed to operate these businesses as minority shareholders with a maximum of 49 percent shareholding.  The regulations require that foreign investors provide proof of investment of $123,152 during registration or renewal of their traders’ licenses or to have deposited $123,152 with a local institution.  The regulations require foreign investors to renew their business identification card annually .

The Land Act of 2010 and Land Regulations of 2011 allow foreign investors to hold land titles as long as 20 percent of the company is owned by local investors. 

Trade Promotion and Advertising

Lesotho does not have a national advertising body.  The advertising and marketing sector is at nascent stage but Lesotho has demonstrated growth in the past decade.   A 2013 World Economic Forum’s Global Competitiveness Report scored Lesotho 2.8 out of 7 in terms of marketing, which was below  the global mean of 4.1, Lesotho was ranked 131 out of 144 countries. The 2019 report   boosted Lesotho ranking to 94 out of 141 countries and scored  the country at 3.6. This reflects an improvement in marketing and advertising tools and techniques. The Limkokwing University of Creative Technology introduced a degree in advertising which is expected to enhance services in this area.  Radio, television, newspaper, billboards, and sponsored sports events advertising are the most common promotion tools for new and existing products and services.  Social media and e-mail marketing is becoming increasingly popular, especially for services

Resources

Commonwealth: https://www.commonwealthofnations.org/.