LNDC; A Brief History

In 1967, directly after gaining independence from the United Kingdom, the government established the Lesotho National Development Corporation (LNDC) to promote industrial investment, with the aim of raising the level of employment.

The LNDC is the government's main parastatal agency for implementing the country's industrial development policy.

In practice, the LNDC provides factory buildings, which are rented out to investors. The LNDC also provides infrastructure, services (for example serviced industrial lands for rent, so companies can build their own factories) and an incentive package for investors.

Between 1973 and 1999 the LNDC has worked with 40 companies that have investments in Lesotho.

In the 1970s and 1980s the LNDC facilitated investments by 18 companies, who produced a wide range of products including umbrellas, bricks, auto parts, pharmaceuticals and garments. Most companies came from South Africa, circumventing the apartheid boycotts that existed during those years.

In the 1990s investments in Lesotho shifted toward the garment industry: 15 of the 22 companies investing did so in the garment industry and among these there was trend towards Asian investment; 11 of the companies were Taiwanese owned. Most of these garment companies are expanding their factories, mirroring faith in the future possibilities for producing garments in Lesotho.