By Thoboloko Ntšonyane
MASERU- The previously ended 2024 has seen the highs and lows for the Lesotho National Development Corporation (LNDC) for the 2024 performance, as detailed in its latest summary report, ‘2024 Key Highlights & Milestone’.
LNDC has amongst others driven industrial growth and supported employment creation.
The Corporation is charged with promotion and facilitation of the development of industries, mining, and commerce to enhance income levels and employment opportunities in Lesotho.
A glance at LNDC’s 2022-2023 annual report reveals a mixed picture. Employment in the manufacturing sector declined by 3%, with 39,075 jobs reported by March 2023, compared to over 38,000 jobs sustained and 3,000 new jobs created in 2024. This shift has been aided by the re-opening of two factories and the expansion of three others, creating 1,230 jobs under the #ReBulaLifeme Campaign.
During the 2022-2023 fiscal year, LNDC secured a net profit of M75 million, reflecting a 24% increase. However, it fell short of its job creation targets exacerbated by a single factory closure.
Meanwhile the Corporation has during the previous year introduced ambitious projects like Project Leseli, a 20,000m² factory set to create 3,000 jobs and also enable industrial expansion.
LNDC has come under fire as it has faced scrutiny from the Public Accounts Committee (PAC) over controversial loan advancements initiated allegedly through the Minister of Trade’s influence. The Committee then raised concerns over transparency and potential political influence in loan approvals.
The Corporation defended its actions, citing its mandate to support struggling industries during challenging economic times.
Some of the LNDC’s 2024 highlights include the completion of 16 factory shells at Ha Belo and progress on seven more at Tikoe Phase 3; the investments in agriculture, including 230 hectares of wheat in Quthing and securing a stake in Tripharm Manufacturing, a Basotho-owned pharmaceutical company.
It has reported that it has made over 4,000 local procurements totalling M64 million.
In 2024, the LNDC participated in global fora including China and Turkey attracting potential investors to consider Lesotho their potential investment destination.
While LNDC’s export competitiveness improved, with training and international expos for local exporters, the 2022-2023 report also highlighted the challenges such as underperformance and income concentration risk. In 2024, it made efforts to mitigate these issues.
Looking forward, LNDC reported that it will ensure completion of the ongoing infrastructure projects, launch a comprehensive gender and youth strategy, and drive climate mitigation initiatives through carbon credit trading.
Also, it has collaborated with the International Institute for Sustainable Development (IISD) and aims to refine tax incentives and investment tools for sustainable investments.