INFRASTRUCTURE

Infrastructure For Industry


Companies located in Lesotho benefit from an infrastructure which meets the demands of modern industry. This includes the availability of serviced sites and factory shells, efficient telecommunications, power and water utilities and easy access to the excellent transport infrastructure through the Republic of South Africa.

Industrial Estates and Factory Buildings

Industrial Estates

The LNDC provides the following real estate services to assist manufacturing and commercial enterprises:

• Fully serviced industrial plots

• General purpose build factories

• Customised factory buildings

• Development of commercial properties for leasing

The LNDC administers four fully serviced industrial estates where sites and factory buildings are available for rental. The estates are in Maseru, Thetsane 7 km from Maseru, Maputsoe and Ha Nyenye (about 85 km North of Maseru).

All Estates are reached by tarred road and all the Maseru sites have immediate access to a rail link. The buildings are fully serviced with electricity, telephone, telefax, telex, water and sewerage.

Maseru West Industrial Estate has also been extended by 10 hectares of fully serviced land.

Mafeteng Industrial Estate (25 hectares and approximately 80 km south of Maseru) consists of a factory building including dedicated infrastructure services for a strategic natural resource-based project.

In addition new industrial land of 80 hectares at Ha Tikoe in Maseru has been acquired to meet the growing demand by expansions and potential projects.

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Advanced factory shell programme

Since 1981 the LNDC has been erecting factory buildings in advance for the purposes of:

• Shortening investment cycle by eliminating the unnecessarily long lead time between investment decision and beneficial occupation of a factory building.

• Reducing initial capital investment 

• Committing, very quickly, the potential investor’s interest in Lesotho

Lease Terms

The land tenure system in Lesotho does not provide for land being bought or sold. Investors may sublease, on a long term basis, industrial sites to erect a building, rent a custom made building constructed by the LNDC, or purchase an existing factory building.

Investors who choose to construct their own factory shells will be compensated with additional incentives in recognition of their demonstration of investor confidence.

Should the investor wish to purchase an LNDC building, the selling price will be determined by an agreed professional valuation of the building at the date of sale. At the time of sale the LNDC will enter into a sublease agreement on the land with the purchaser, as dictated by the land tenure system. Standard sublease agreements run for a period of 30 years with rent reviews every fifth year. Rental rates are highly competitive.

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Government Levies

• Ground rent: a marginal levy is payable annually to the Lesotho Government for the use of land.

• Property rates: a levy is charged annually on the total capital value of land and premises. This amount is payable to Maseru City Council.

Electricity 

Electricity for industry is available at all industrial estates and the following tariffs became effective in January 1993:
General Purpose Tariffs 003/803

The tariff for the supply of electricity to all installations other than private residences/schools which have a demand of less than 50kw for commercial purposes and less than 25kw for industrial purposes is:
A flat energy charge per KWH MO.41
A fixed monthly demand charge per KVA M7.73

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Industrial Maximum Demand

This is for consumers using electricity entirely or predominately for industrial purposes with a regular maximum demand in excess of 25 kw measured during any 30 minute period during the course of a meter reading period. The following tariffs and charges apply: Tariff 063/863 - A demand charge of M43.42 per KW for all KW of the maximum demand for each meter reading period with a minimum charge M1,158.82 per month.

Tariff 061/861 - For all units consumed M0.2280 per unit.
For major industrial consumers it is essential for a supply to be given at high voltage. All high voltage metering equipment costs must be borne by the consumer and the following tariffs and charges apply:
Tariff 064/864 - A demand charge of M38.63 KW for all KW of the maximum demand for each meter reading period with a minimum charge of M1,158.82 per month.

Tariff 062/862 - For all units consumed M0.2280 per unit
Tariff 007 - Off Peak (all units are charged at M0.1861 per unit)

Electricity will be made available to consumers who require power during off peak periods. The supply will be available for not less than 8 hours per day and is subject to conditions laid down by the Lesotho Electricity Corporation (LEC). The LEC may make adjustments from time to time. All meter costs are for the customer’s account.

Contact Address: Lesotho Electricity Corporation
P O Box 423
MASERU
Tel: +266 22312236

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Transportation

Lesotho’s road network is constantly being expanded especially with the implementation of the Lesotho Highlands Water Project. Most Lesotho based companies use their own trucks for internal transport. In addition, road haulage firms provide related services. Lesotho’s road system is linked at many points to the South African road network thus providing excellent access to the cities and ports of RSA. 

International air services are provided by the South African Air Link which operates regular flights schedules to Moshoeshoe I International Airport - Johannesburg/Maseru/Johannesburg 19 times weekly.

The flights to Johannesburg International Airport connect with international flights to various world wide destinations.

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Courier Services

International express services for documents and parcels are provided very efficiently by five major courier companies namely:

Lesotho borders with South Africa at Caledonspoort, Ficksburg and Maseru are open 24 hours a day.

There are no railways within Lesotho. Maseru, the capital, is however, linked to the South African railway system for freight. The Maputsoe Industrial Area (85 kms north of Maseru) is about two kilometers from the railhead at Ficksburg in the Republic of South Africa.

Most of Lesotho’s international exports go through the port of Durban by rail or road (600 km) from Maseru on excellent roads. Durban has the most modern and efficient handling system of any port in Africa. A sample of shipping information is given below:

TO DURBAN

FORWARDING AGENCIES

Industrial Water Rates

The supply of water is the responsibility of the Water and Sewerage Authority (WASA) and the following charges currently apply for industrial use:

* WASA assumes that water returned to sewers is 85% of kilolitres billed. However, wet industries receive special treatment through the concessionary Waste water Tariffs for Wet Industries Notice 2000 which applies the following costs:

WASA classifies any industry that utilises 2,000 (two thousand) kilolitres per day as a wet industry.

Factories requiring large volumes of non-potable water may be able to source water directory at a much lower cost.

For further information on tariffs and other issues please contact:

Water and Sewerage Authority
P O Box 426
MASERU 100, Lesotho
Tel: +266 22312449
Fax: +266 22310006

Telecommunications

The Lesotho Telecommunications Corporation (LTC) operates a public telecommunication service in Lesotho and makes every effort to give its customers reliable services at reasonable costs. A satellite earth station at Ha Sofonia, installed in 1984, is connected to the International Telephone Exchange in the capital, Maseru, and provides a direct dialling facility both locally and overseas.

The telex service is fully automatic throughout the country and to the rest of the world. There is also a national and international telegram service. In addition, transmission by telefax is a standard LTC service. Hard copy from Lesotho can be sent quickly and inexpensively anywhere in the world.

Increased use of modern technology has vastly improved the quality of national and international telecommunications services.

For further information please contact:

Lesotho Telecommunications Corporation, P O Box 1037, MASERU 100. Tel: +266 22211000 Telex: 4236 LO, 
Telefax : +266 22310014/22311522

In addition, a cellular phone network, VCL Communications was introduced in 1995. For further information on tariffs and other issues please contact:
VCL Communications, P O Box 7387, MASERU 100 Tel: +266 22212000 Telefax: +266 22311079.

SERVICE TARIFF INFORMATION
1US$ = M6.94 as at 1st September, 2000

International Telephone and Telefax Charges from Lesotho

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National charges

  Cellular

N.B.

The cheap rates apply as follows:
Normal working days, from 20.00 hours to 07.00 hours
Weekends, from Saturday at 13.00 hours to Monday at 07.00 hours
Holidays, from 20.00 hours the day before to 07.00 hours the day after the holiday period

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