Tax incentives

  • 10% corporate income tax on manufacturing profits
  • No withholding tax on dividends distributed by manufacturing firms to local or foreign shareholders.
  • Training costs are allowable at 125% for tax purposes.


  • A stable social and political environment which is investor friendly.
  • A free enterprise and free market economic system, which forms the basis for sustained development and growth.


Young, abundant, predominantly English speaking, literate, well-motivated labour force with a tradition of manual dexterity at competitive wage rates.

Market access

  • Duty free and quota free access of Lesotho made products to a market of:
    • 55 million consumers within the Southern African Customs Union (SACU) comprising Botswana, Lesotho, Namibia, Swaziland and South Africa.
    • The Southern African Development Community (SADC) – (14 countries comprising 260 million consumers).
  • ​Preferential market access of Lesotho originating products into the Australian market (22 million consumers), affording them duty free access or reduced rates of duty.
  • Duty free access for a large list of products except for dairy, poultry and egg products granted by Canada (34 million consumers) under the GSP system.
  • A preferential treatment agreement between SACU and MERCOSUR (comprising Argentina, Brazil, Paraguay, and Uruguay (385 million consumers) grants trade preferences on specific products originating from Lesotho as member of SACU.
  • The SACU EFTA gives SACU originating industrial and fish products duty free and quota free access to Switzerland, Norway, Iceland and Liechtenstein.
  • Lesotho can also export all products to the European Union (500 million consumers) duty free provided under SACU EPA Agreement.
  • Lesotho’s industrial products can be exported duty and quota free to Japan, New Zealand, and Turkey under a GSP scheme introduced in 1972.
  • Lesotho benefits from the lucrative American market (310 million consumers) provided by the African Growth Opportunity Growth (AGOA).

About LNDC

The Lesotho National Development Corporation (LNDC) is the main parastatal of the Government of Lesotho charged with the implementation of the country’s industrial development policies.

“The mandate of the Corporation is to initiate, promote and facilitate the development of manufacturing and processing industries, mining and commerce in a manner calculated to raise the level of income and employment in Lesotho.”  more...

Contact us

Lesotho National Development Corporation
Block A, Development House, Kingsway Street
Maseru, Lesotho, 100

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