Lesotho economy and business are supported by the industrial and agricultural sectors of the country. Subsistence farming is the source of income of about 86% of the population. About 14% of the people are engaged in industrial sector in Lesotho. The major agricultural products of Lesotho are barley, wheat, pulses, corn and sorghum. The different industries that have been a major support to the economy of Lesotho are tourism, beverages, food, handicrafts, construction and textiles.
Lesotho economy and business are also supported by the export trade. The major export partners of Lesotho are Belgium, United States and Canada. Lesotho export is heavily dependent on the manufacturing industries of the country that includes road vehicles, garments and footwear. The other products exported are food, wool, mohair and animals. The foreign revenue earned through export helps in the economic development of the country. Loti (LSL) or South African Rand (ZAR) is used to carry out the business transactions in Lesotho.
Lesotho economy is also dependent upon water of the region. The Lesotho Highlands Water Project (LHWP) supplies water to Lesotho and South Africa. The mining industry of Lesotho provides employment to about 60,000 people living in the country. About 50% of the population is engaged in animal husbandry and cultivation of crops. The country also receives financial aid from the European Union, the World Bank, Germany, United States, People’s Republic of China and Ireland.
The Central Bank of Lesotho is the apex bank of the country. It plays an important role in regulating the economy of Lesotho. It issues currency and advises the government on financial matters. All other banks of Lesotho work under its control and jurisdiction.
Business in Lesotho
The business sector of Lesotho has been developing with the improvement of various industries. Some of the major companies, which are located in the country, are LEO (Pty) Ltd, Comnet Lesotho, Telecom Lesotho, Nedbank Lesotho Limited and Quadrant Computers.
For starting a business in Lesotho, one has to go through a number of procedures. These are as follows:
- A lawyer has to be hired for preparing the necessary documents.
- The land lease has to be stamped and payment of stamp duty has to be made.
- An inspection is done by the Public Health Inspector.
- The business man has to apply for a trading license at the office of the Ministry of Trade and Industry.
- A bank account has to be opened along with making the initial payment.
- Then one has to register for income tax and VAT at Lesotho Revenue Authority.
- A workmen’s compensation has to be filed with an insurance company.
- A request has to be made for a Post Office box.
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