By: Thoboloko Ntšonyane
MASERU – Following the recent Forum on China-Africa Cooperation (FOCAC) held in Beijing, China last month, Lesotho National Development Corporation (LNDC) has successfully attracted significant Chinese investments to the country. This was disclosed by its interim CEO Advocate Molise Ramaili during the press conference last week.
Advocate Ramaili stated that the LNDC’s 2023/24-2027/28 plan aligns with the government’s policy on a private sector-led economy and export growth. “So, we went to China to explore how we can support the private sector. We sought a broad range of investments because, when I talk about the LNDC, we are often known primarily for factories, especially in garments and textiles,” he said.
The interim CEO mentioned that they are aligning the business with the extended National Strategic Development Plan II (NSDP II). He highlighted key sectors poised for economic growth, including agriculture, renewable energy, tourism, information technology, and the creative industry.
He indicated that they held several meetings with Chinese investors, noting significant interest in renewable energy opportunities. He emphasized that China has an appetite for investing in clean energy projects within the country.
The commitment, which spans sectors including manufacturing, pharmaceuticals, and renewable energy, is set to play a pivotal role in the country’s economic transformation. Should these projects see the light of the day, expectations are high that they will enhance Lesotho’s competitiveness while addressing the unemployment rate especially amongst youth.
The interim CEO highlighted that Lesotho enjoys at least 300 days of sunlight each year, positioning the country as an ideal location for renewable energy development. In meetings with Chinese investors, they engaged with companies in the renewable energy sector, including Sinoma International Engineering Co., Ltd., which has already built a 30-megawatt solar project at Ramarothole in Mafeteng.
He mentioned that another company has expressed interest in investing in Lesotho’s renewable energy sector through a build, operate, and transfer (BOT) model. “This demonstrates that Chinese companies recognise Lesotho as a prime investment destination,” he said, adding that trade opportunities with China have become more viable now that the playing field has been leveled.
Advocate Ramaili also mentioned that the meetings explored other sectors, such as agriculture, given China’s expertise in producing high-tech agricultural machinery. They also visited agricultural learning institutions in China to gain insights into advanced farming techniques.
Additionally, he noted that Chinese companies are already involved in the construction of the Polihali Dam under the Lesotho Highlands Water Project (LHWP) Phase II, and there is room for further collaboration between Chinese investors and the Basotho people.
The LNDC also hosted an investment forum, where Lesotho was marketed to Chinese investors. Advocate Ramaili explained that they targeted not only the manufacturing sector but other sectors as well. With the Belo Industrial Park nearing completion, which boasts 16 factory shells, he expressed hopes that Chinese investors will occupy some of these spaces and create employment opportunities for Basotho.
He emphasised that they are interested in attracting investors in pharmaceuticals, the automotive industry, and electrical components manufacturing. “We have a very good lead,” he added, noting ongoing talks with Sinopharm to establish a facility in Lesotho for tablet manufacturing.