Find Industry and Manufacturing expertise in Lesotho
The contribution of Manufacturing to GDP declined from 20.1% in 2004 to 11.4% in 2010 due in part to the global economic crisis and the rapid growth of other sectors in the country (World Bank 2010). Major manufacturing industries include textiles, clothing, footwear, food and beverages. Manufacturing is based largely in and around the capital, Maseru.
The Government of Lesotho previously encouraged foreign direct investment in manufacture of textiles, clothing and footwear to take advantage of preferential trade arrangements with the USA, however following the economic crisis, textile producers have struggled to compete with low-cost producers in Asia.
Major companies in Lesotho include textile firms such as the Formosa Textile Company, which specialises in the production of Denim fabric and cotton yarn, and has the capacity to produce 3 million yards of denim fabric and 900 tons of cotton yarn per month and employs roughly 900 workers.
In the 2012-2013 World Economic Forum Global Competitive report Lesotho rated 124th out of 144 countries for production process sophistication, scoring 2.8 out of 7, compared to the neighbouring country of South Africa which came 43rd and scored 4.2 out of 7.
The Lesotho National Development Corporation (LNDC) is a Government owned company, which serves to implement Lesotho’s industrial development and manufacturing policies. The company was founded by following a government Act in 1967, and serves to attract foreign and indigenous industrial investment.
A vast majority of the manufacturers working in Lesotho are members of the Lesotho Textile Exporters Association (LTEA), a voluntary organisation established in 1993. The LTEA serves as a major Trade Union in Lesotho’s industrial sector.
|Industry and Manufacturing organisations in Lesotho|
|Topito Steel & Engineering Metal Works (Pty) Ltd||