Overview
The digital economy in Lesotho is expanding on the back of mobile connectivity, fintech adoption, e-gaming, and growing demand for enterprise ICT. Lesotho one of the strongest internet and communications connectivity – population coverage by mobile network technology – in Africa, above African and LDCs averages (2024): 2G – 95.8%; 3G – 95.8%; LTE/WiMAX – 85.1%; 5G – 44/9%. (Source: ITU – Datahub). The sector makes a modest and strategic 2% contribution to GDP (Source: BOS 2024). Opportunities span software services, KPO, BPO, CTO, e‑commerce logistics, digital financial services, and EdTech/HealthTech solutions integrated with public services.
Sector Structure and Key Facts
- Connectivity: Mobile penetration is high, while fixed broadband is developing; 3G/4G coverage continues to expand.
- Fintech: Mobile money usage (M‑Pesa, EcoCash, C-Pay, etc) underpins digital payments and MSME inclusion.
- Employment: The ICT sector employs a small but growing cadre of skilled professionals, developers, call‑centre agents and field technicians.
- Ecosystem: Emerging hubs and university programmes (e.g., NUL, LUCT) support talent; cloud adoption is rising among SMEs.
Competitive Analysis
Lower operating costs than South Africa; English language capability; proximity to Gauteng customer base and logistics hub; opportunity to pilot public‑service digitalization in a small market; time‑zone alignment with EU for services.
Institutional and Legal Framework
- Lesotho Communications Authority (LCA) – communications sector regulator.
- Ministry of Communications, Science, Technology and Innovation – sector policy, development and promotion.
- Central Bank of Lesotho – fintech/payment oversight
Incentives and Support Schemes
| Incentive Type | Details |
| Reduced Corporate Tax (Qualifying ICT) | Confirm eligibility with RSL for ICT service exports. |
| Import Relief | Duty/VAT relief on servers, networking and data‑centre equipment (subject to RSL rules). |
| Skills Partnerships | University and donor‑funded digital skills programmes; BPO training grants where available. |
Key Investment Opportunities
KPO/BPO/contact centres (CTOs) servicing SA and global markets; SaaS for SMEs, Fintech for MSMEs; last‑mile e‑commerce logistics; govtech platforms; EdTech and HealthTech solutions; cybersecurity and managed services.
Other Investor Information:
Skills pipelines and reliable power/back‑up are critical; data protection compliance and payment regulations must be observed.
Compliance and Participation Strategies:
Licensing with LCA where applicable; payment system approvals with CBL for fintech; data protection and cyber security standards adoption.
Key Takeaways:
- Cost‑competitive near‑shore services market.
- Fintech and govtech demand is rising.
- Talent and reliability are key success factors.
Checklist for Foreign Investors
- Assess licensing (LCA/CBL)
- Plan data protection
- Secure reliable power/back‑up
- Build SA/EU client pipeline