Overview
Lesotho is party to a limited number of Bilateral Investment Treaties (BITs), and several regional and multilateral agreements that contain investment-related provisions. These instruments provide frameworks for investment protection, fair treatment, and dispute resolution, though recent regional and continental agreements (SADC FIP and AfCFTA Investment Protocol) emphasise state-to-state dispute settlement rather than ISDS.
Summary of Investment Treaties
| Agreement / Treaty | Parties / Region | Type | Signed | Entry into Force | Key Issues Covered |
| Germany– Lesotho BIT | Germany – Lesotho | Bilateral Investment Treaty | 11 Nov 1982 | 17 Aug 1985 | Fair and Equitable Treatment (FET), expropriation, repatriation, investor–state arbitration |
| UK–Lesotho BIT | United Kingdom – Lesotho | Bilateral Investment Treaty | 18 Feb 1981 | 18 Feb 1981 | FET, protection against expropriation, arbitration |
| Switzerland–Lesotho BIT | Switzerland – Lesotho | Bilateral Investment Treaty | 16 Jun 2004 | 07 May 2010 | Investment protection, arbitration |
| EU–ACP Economic Partnership Agreement (EPA) | EU and ACP States (incl. Lesotho) | Trade and Investment Treaty | 2009 | — | Investment-related provisions, procurement, trade facilitation |
| SADC Model BIT (2012) | SADC region (incl. Lesotho) | Model Template | 2012 (adopted) | — | FET, MFN, expropriation, investor obligations (non-binding template) |
| SADC Protocol on Finance and Investment (FIP, amended) | SADC Member States | Regional Protocol | — | — | Regional protections, ISDS removed, State-to-State settlement, investor obligations |
| AfCFTA Investment Protocol (2023) | African Union / AfCFTA States | Continental Protocol | 2023 | — | Harmonised protections, State-to-State dispute settlement, sustainable investment standards |
Investor Checklist – Treaty Protections
- Investors should check if its home country has a BIT with Lesotho (Germany, UK, Switzerland).
- For EU investors, review EPA provisions on investment and procurement.
- Investors should consider the implications of SADC FIP: no ISDS; reliance on domestic courts or State-to-State processes.
- Investors should monitor AfCFTA Investment Protocol ratification for continental protections.
- Investors should consider structuring contracts to include arbitration clauses (ICSID/UNCITRAL) where BIT coverage exists.