Retail Garments

PROJECTS PROFILES
Project Title:
Knit Fabric Mill
Project Concept:
Lesothos garment industry produces

approximately 90 million knitted garments a
year. It is estimated that Lesotho consumes
between 22 000 and 26 000 metric tons of
knitted fabric per year. A wide range of
(mainly cotton) knitted garments is
produced from single/ double jersey, pique,
interlock and rib fabrics. A number of
factories are now beginning to produce
fleece knitwear made from synthetics.
These garments are produced by 34
factories which collectively employ about 28
000 workers.
Investment Opportunities:
There is a need to establish knit mills to

support the local garment industry.
International markets access conditions
also demand vertically integrated garment
industry for continued preferential access
into these markets. Lesotho therefore
requires establishment of this facility by
September 2007 in order to continue
enjoying preferential access to the US
market under the Africa Growth and
Opportunity Act (AGOA), the EU market
under Everything But Arms (EBA), Canada,
Nordic Countries etc.
Project Type:
New Project
Estimated Project Cost:
US$30 000 000.00
Collaboration Sought:
Foreign Direct Investment

Joint Venture
Contact:
Lesotho National Development Corporation

Private Bag A96, Maseru 100, Lesotho
Tel: (266) 2231-2012, Fax: (266)22 31-0038
www.lndc.org.ls, email: ce@lndc.org.ls
Project Title:
Accessories and Packaging Materials
Project Concept:
Lesothos garment industry produces

approximately 90 million knitted garments
and 26 million pairs of jeans a year. It is
estimated that 220 metric tons of knitted
trims and accessories such as collars,
ribbed cuffs and hems are used by the
garment industry per annum. In addition,
over 20 million pieces of packaging
materials are consumed by the industry per
annum.
Knitwear and jeans manufacturers in

Lesotho manufacture large volumes of
clothing mainly for the US market. These
manufacturers consume a lot of finishing
accessories and packaging materials. All
accessories are imported. Most of
packaging materials are also imported into
Lesotho.
Project Type:
New Project
US$1 000 000.00

Joint Venture
Contact:

Tel: (266) 2231-2012, Fax: (266) 2231-0038
Project Title:
Leather and Footwear
Project Concept:
Leather and footwear is still a nascent

industry in Lesotho. The country has only
three shoe manufacturing factories despite
the fact that shoes qualify for all the benefits
under African Growth and Opportunity Act
(AGOA). These three firms supply the
regional market and export only a fraction of
their produce. A large share of the domestic
market has to rely on imports from South
Africa.
The industry offers large potential for

investment and growth to serve both
regional
and
international
markets,
particularly in leather tanning and finishing,
footwear and footwear components, leather
garments, leather goods including bags,
wallets, belts, gloves, car seat covers and
other accessories
Type of Project:
New Project
US$3 000 000.00
Collaboration sought:

Joint Venture
Contact:

Tel: (266) 22 31-2012, Fax: (266) 22 310038
Project Title:
Assembly of consumer electrical

and electronic appliances.
Project Concept:
The country boasts a pool of labour

resources which include people who have
graduated with different technical diplomas.
The knowledge and skills they have
acquired will enable them to work on sub
assemblies or the final assembly of an array
of finished electrical and electronic products
or components.
Opportunities exist in the production of a

wide range of finished goods from
manufactured parts or subassemblies.
These could involve assembly of intricate
manufactured products such as engines,
computers,
electrical
and
electronic
components, radio or test equipment,
machine tool controls and prototypes of
different types of products to meet the
domestic
and
international
markets.
Currently only two (2) companies assemble
electronic and electrical products such as
television sets and circuit breakers for
international and regional brands.
Type of Project:
New Project
US$10 000 000.00

Joint Venture
Contact:

Tel: (266) 2231-2012, Fax: (266) 2231-0038
Project Title:
Food Processing
Project Concept:
Historically processing of fruits and

vegetables in its simplest form like picking,
sun drying or preserving was practiced in
the country from very ancient times in
almost every home. The Ministry of
Agriculture is intensifying efforts to enlarge
the production base of these products, and
modern methods of cultivating are being
introduced to ensure improved productivity.
The developments that are being introduced

by the Ministry of Agriculture will result in
greater availability of quality raw materials
to the food processing industry, better
capacity utilization and producing a wider
range of products of international quality.
Opportunities exist in fruits and vegetables.
One company is currently processing foods
for the regional brands.
US$2 200 000.00

Joint Venture
Contact:

Tel: (266) 2231-2012, Fax: (266)22 31-0038
Project Title:
Food Processing
Basotho Fruit and Vegetable Canners
Project Concept:
Basotho Fruits and Vegetable

Canners
operates a fruit and vegetable canning
factory. It is an export-oriented company
with success in exporting its products to
South Africa and other international
markets.
The Company wishes to expand its current

facilities by acquiring modern equipment
and machinery for improved production and
packaging of canned fruits and vegetables
to better meet current and future demand in
terms of quantities and quality of products
including ISO 9000. On implementation of
the expansion plan, the company will
continue to focus on its main line of
products.
Type of Project:
Expansion and modernisation
US$5 000 000.00
Joint Venture
Market Access
Contact:

Tel: (266) 2231-2012, Fax: (266) 2231-0038
Project Title:
Water Bottling
Project Concept:
Lesothos major natural resource is water,

often referred to as White Gold by the
Basotho people. The water is considered
one of the most pure in the world with very
little
microbiological
and
chemical
contamination which does not require
intensive treatment.
The country has 6 springs within close

proximity of Maseru the capital town. These
have an average yield of .5 litres of water
per second and which is low in
concentration of micro organisms and
chemical pollutants.
Bottled water is also considered a food
product internationally, thus investment in
water bottling is necessary since this would
result in a positive impact on public health in
the region, by providing safe drinking water
for areas with poor water supply.
Project Type:
New Project
US$650 000.00
Foreign direct Investment

Joint Venture
Contact:

(LNDC)
Tel: (266) 22 31-2012, Fax: (266) 22 310038
Project Title:
JAAT Water Bottling
Project Concept:
JAAT Water Bottling (Pty) Ltd was

incorporated in May 2000 to bottle natural
spring water. JAAT has two (2) springs at
bottling site but only one is operational.
The spring in operation has capacity to
produce 18 000 litres per 24 hours. The
trade name for the bottled spring water is
Mountain Fresh bottled at source from a
spring in a village of Matukeng, about 20km
from Maseru on a good road. The Company
is the first and currently the only water
bottling business in Lesotho, a country
known for its quality water.
JAAT is looking for a partner who can add

value to the water business by bringing in
technical know-how, management, finance
so as to meet the growing demand in the
hotel industry and other external markets.
Project Type:
Expansion/modernisation
US$650 000.00
Joint Venture
Management Expertise
Market Access
Contact:

Tel: (266) 2231-2012, Fax: (266) 2231-0038
JAAT Water Bottling (Pty) Ltd
P.O Box 13197
Maseru 100
Tel: +266-22 326041 (Office)
Tel: +266 58020755 (Plant)
Project Title:
Lesotho
(LPC)
Pharmaceutical
Corporation
Project Concept:
Lesotho Pharmaceutical Company is

registered
as
manufacturer
of
pharmaceutical products. The company
has recently received capital injection from
the Government of Lesotho to upgrade it TB
drugs plant. Other refurbishments have
already been completed.
The LPC still has to upgrade its warehouse

in order to receive full accreditation from the
World Health Organisation. Accreditation
will facilitate the manufacture of a variety of
drugs to supplement the manufacturing
base of the relevant drugs and replace
imports with locally produced drugs and
medicines
Project type:
Expansion and modernisation
US$5 000 000.00
Technical Expertise
Joint Venture
Technology Transfer
Market access
Contact:

Tel: (266) 2231-2012, Fax: (266)22 31-0038
10
Project Title:
Plastic and Packaging Products
Project Concept:
The demand for plastics has increased

steadily; plastics are now accepted by
households, retailers, designers, engineers
as basic material along with other traditional
materials. They are one of the most used
materials on a volume basis in industrial
and commercial life.
Plastics are broadly integrated into todays
lifestyle and make a major, irreplaceable
contribution to virtually all product areas.
The manufacturing sector in Lesotho which

is geared to production of goods for export
markets requires a lot of packaging material
for its products and currently depends on
plastic mostly imported from South Africa.
Local retailers and supermarkets also
depend on imported packaging material
which might have been cheaper to obtain
locally. This then opens vast opportunities
for the manufacture of plastic packaging
material and plastic ware.
Project Type:
New Project
US$500 000.00

Joint Venture
Contact:

Tel: (266) 2231-2012, Fax: (266) 2231-0038
11
Project Title:
Local resource-based projects
Project Concept:
These projects include the manufacture of

ceramic ware, bricks, sand stone, wool and
mohair processing. The sand stone
deposits are found all over Lesotho and can
be exported in different forms, sizes and
thicknesses. The whole industry is in the
hands of small artisans with limited
investment capabilities. The sandstone is
extensively used in the construction of
buildings, and special monuments. Artefacts
made of sand stone have also become
popular.
The demand for sandstone products

increases every day with different
applications, in different designs. The main
advantage of using these stones has been
that they require negligible maintenance. It
is hoped that with additional capital that
could be brought in by joint venture
partnerships and proper marketing it would
be possible to increase the export market of
natural and calibrated sandstone.
Estimated project Cost:
US$410 000.00

Joint Venture
Market Access
Contact:

Tel: (266) 2231-2012, Fax: (266) 2231-0038
12
Project Title:
Loti Brick
Project Concept:
Loti Brick, based in the Thetsane Industrial

estate in Maseru, manufactures face bricks
for the Lesotho Market as well as for export
to South Africa. The Company is owned
96% by Government of Lesotho and 4% by
the Private Sector.
Government has decided to privatise Loti

Brick and to sell 80% of its shares to the
Private Sector. The Company has recently
acquired a clay mining area on the outskirts
of the capital Maseru
Estimated project Cost:
US$1 300 000
Acquisition
Joint Venture
Market Access
Contact:

Tel: (266) 2231-2012, Fax: (266) 2231-0038
13
Project Title:
Environmental Projects
Project Concept:
The textile industry in Lesotho includes the

manufacture of yarns and fabrics, the
dyeing, finishing and printing of the fabric
and conversion of that fabric into garments.
The primary environmental aspects of the
textiles industry involves water use and
wastewater discharge from washing,
chemical use in dyeing and finishing, and
management of scrap and solid waste.
Lesotho has already developed a sizeable
capacity to produce woven denim fabrics
and will soon develop capacity to produce
knit fabric, dyeing and finishing of fabric.
There
therefore
exists
substantial
opportunities to invest in large scale waste
treatment plants to support the textile
industry.
International demand for products is shaped

by among others, environmental concern.
Investment opportunities exist which include
process measurement and control, waste
water recycling, chemical substitution and
reduction, energy efficiency and new
product development using waste materials.
Type of Project:
New Project
Depends on project size and type of product

Joint Venture
Contact:

Tel: (266) 2231-2012, Fax: (266) 2231-0038
14
Project Title:
Development of infrastructure
Project Concept:
Lesotho is not able to meet its growth

objectives
because
of
inadequate
infrastructure. There is a need to develop
industrial and commercial sites and
buildings. Commercial retail properties as
well as commercial residential properties
are also in high demand. Local financial
capacity to develop these properties is very
limited therefore foreign direct investment is
sought for their development.
Foreign direct investment is required in:

- Development of an 80 hectare Tikoe
industrial estate, situated in Maseru.
Development cost is estimated at
USD25.66 million
- Development of a 31 hectare industrial
estate situated in the Leribe district 80
km north of Maseru. Development cost
is estimated at USD6.04 million
- Development of 2 commercial centres
which are in excess of 9,400 m and 23,
110m respectively
Type of Project:
New Project
Some cost estimates are stated above

Joint Venture
Contact:

(LNDC)
Tel: (266) 22 31-2012, Fax: (266) 22 310038
15
Project Title:
Call Centres
Project Concept:
Lesotho is one of the few Southern African

Countries
without
a
call
centre.
Establishing call centres will provide higher
quality customer services, with a particular
focus on the financial services industry.
The medium of instruction in Lesotho is
English; there are also institutions which
offer French language course.
These
institutions have provided a pool of
resources with the following attributes:
Fluency in English- can speak
clearly and without accent.
Computer literacy and ability to
type
without
mistakes
at
competitive speed
The country shares the same time zone
with parts of Europe and other global
players, making doing business in Lesotho
easier.
There
is
already
a
range
of
telecommunications
and
computer
technologies,
including
customer
relationship management technologies, and
other database systems,
Call Centres
Internet service provision
Type of Project:
New
US$700 000.00

Joint Venture
Contact:

The Chief Executive Officer
Tel: (266) 2231-2012, Fax: (266 22 31-0038
ce@lndc.org.ls
Lesotho Telecommunication Authority
The Chief Executive Officer
lta@lta.org.ls
16
Project Title:
Square One Call Centre
Project Concept:
The concept is being proposed by Square

One Computers, a wholly Basotho owned IT
company operating in Lesotho.
The
Company wishes to diversify its existing
operations in the ICT services.
Lesotho is a small country that plans to
have tourism as significant contributor to the
GDP. There are a number of ICT services
that are needed in order to facilitate the
expansion of the tourism industry in
Lesothohence the idea of call centres.
The
company
wishes
to
provide
complimentary services. This type of
business has not yet been established in
Lesotho and will thus give a potential
investor an opportunity to enter an
untapped market and also make a
significant
contribution
in
increasing
employment.
Type of Project:
New
US$700 000.00
Technical Expertise
Technology Transfer
Contact:
Mrs Mamotolo Malie

Square one Computers
P O Box 1045,
Maseru
Tel: (266) 2231-0222
mamotolo@ilesotho.com
17
Project Title:
Electronic Waste Recycling
Project Concept:
The project is proposed by Square One

Computers, a wholly Basotho owned IT
company operating in Lesotho.
The
Company wishes to expand the existing
training, software development and other
services.
To this end, the Company would like to
explore the possibilities of re-use of
components recovered from electronic
devices that have expended their useful life.
Lesotho does not have a facility for a safe
disposal of electric and electronic waste.
Most of the recycling of several forms of
solid waste is done in the neighbouring
state, South Africa.
Investment Opportunity
There is no project like this one in Lesotho.

Its uniqueness presents a number of
opportunities for investment
Type of Project:
New
US$12 000 000.00
Foreign Collaboration Sought: Technical Expertise

Technology Transfer
Contact:
Mrs Mamotolo Malie

Square one Computers
P O Box 1045,
Maseru
Tel: (266) 2231-0222
mamotolo@ilesotho.com
18

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PROJECTS PROFILES

Knit Fabric Mill

Lesothos garment industry produces

There is a need to establish knit mills to

Estimated Project Cost:

US$30 000 000.00

Foreign Direct Investment

Lesotho National Development Corporation

Accessories and Packaging Materials

Lesothos garment industry produces

Knitwear and jeans manufacturers in

Estimated Project Cost:

US$1 000 000.00

Foreign Direct Investment

Lesotho National Development Corporation

Leather and Footwear

Leather and footwear is still a nascent

The industry offers large potential for

Estimated Project Cost:

US$3 000 000.00

Foreign Direct Investment

Lesotho National Development Corporation

Assembly of consumer electrical

The country boasts a pool of labour

Opportunities exist in the production of a

Estimated Project Cost:

US$10 000 000.00

Foreign Direct Investment

Lesotho National Development Corporation

Historically processing of fruits and

The developments that are being introduced

Estimated Project Cost:

US$2 200 000.00

Foreign Direct Investment

Lesotho National Development Corporation

Basotho Fruits and Vegetable

The Company wishes to expand its current

Expansion and modernisation

Estimated Project Cost:

US$5 000 000.00

Lesotho National Development Corporation

Lesothos major natural resource is water,

The country has 6 springs within close

Estimated Project Cost:

Foreign direct Investment

Lesotho National Development Corporation

JAAT Water Bottling

JAAT Water Bottling (Pty) Ltd was

JAAT is looking for a partner who can add

Estimated Project Cost:

Lesotho National Development Corporation

Lesotho Pharmaceutical Company is

The LPC still has to upgrade its warehouse

Expansion and modernisation

Estimated Project Cost:

US$5 000 000.00

Lesotho National Development Corporation

Plastic and Packaging Products

The demand for plastics has increased

The manufacturing sector in Lesotho which

Estimated Project Cost:

Foreign Direct Investment

Lesotho National Development Corporation