Investment Policy Review - Lesotho

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This Review on Lesotho provides an overview of the Foreign Direct Investment (FDI) in the country, including the most recent trends and developments. It examines the legal investment framework currently in place and identifies new areas of high FDI potential. The Review is intended to improve Lesotho's investment policies and to familiarize the international private sector with country's investment environment.



Conclusions and recommendations

Lesotho has done far better than most other LDCs in attracting FDI, and is unique among African LDCs in attracting predominantly export-oriented FDI. Apparel TNCs have generated significant employment and foreign exchange; they have also created industrial and exporting skills that, though narrow in scope, could provide a base for longer-term FDI and industrial development. There is also a trickle of South African FDI relocating labourintensive processes, and this offers good prospects for long-term growth. There is little resource-based FDI,but it should be able to attract investors in the foreseeable future.


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