Call Centres
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Invest in Lesotho’s
Call Centres Sector
Your Strategic Nearshore Hub for High-Value BPO & KPO.
A prime, untapped opportunity for South African and international BPO companies seeking to optimize costs without compromising on talent or connectivity.
Introduction
Lesotho is establishing itself as a strategic nearshore hub for high-value Business Process Outsourcing (BPO) and call/contact centre operations (CCOs), specifically targeting South African and international companies.
It has first class international connectivity, a pool of English-speaking graduates, and proximity to South Africa which simplifies setting up and managing business operations there. Costs are highly competitive: LSL* 50 per call centre seat per hour. The best location for call centres is Maseru, home to 10% of Lesotho’s population.
Strengths &
Opportunities
Lesotho boasts a growing pool of educated, English-speaking graduates, robust digital infrastructure linked to major submarine cables, and geographical proximity that simplifies management and logistics.
Market Evidence:
Global BPO Market Growth:
The global BPO market continues to expand, driven by digital transformation and a corporate focus on core competencies. Lesotho is perfectly positioned to capture a segment of this growth, particularly from South Africa, where companies are actively seeking cost-effective nearshoring solutions.
Proven Cost Advantage:
A detailed cost-modelling exercise confirms that Lesotho maintains a significant cost advantage. The all-inclusive cost per seat per hour remains highly competitive at circa LSL 50 – 100, a fraction of the cost in established BPO hubs like the Philippines (LSL 242) or Eastern Europe (LSL 167).
Demographic Dividend:
With a national population exceeding 2.1 million and a median age of just 23 years, Lesotho has a young, dynamic demographic profile. The concentrated pool of graduates in Maseru provides a direct talent pipeline for BPO employers.
Strategic Advantages – The Lesotho Advantage
Unrivalled Proximity & Logistics:
A “same-time-zone” advantage (GMT+2), with South Africa and close to EU/UK, is critical for real-time management and operational cohesion with South African and EU/UK clients.
World-Class Digital Infrastructure:
Lesotho’s connectivity is not just regional; it is global. The country is served by multiple high-capacity submarine cable systems, including EASSy, WACS, and SEACOM. Nationally, extensive 4G coverage and a growing fibre-optic network ensure the high-speed, low-latency connectivity essential for modern voice and non-voice BPO services. Maseru has extensive 5G coverage.
Cost-Competitive Operations:
Utilities and other operating expenses are relatively lower in Lesotho vs South Africa and other BPO Hubs.
Digital policy momentum:
The National Digital Transformation Strategy 2024–2030 emphasises infrastructure, skills and e-government – favouring BPO readiness and public-sector contact-centre demand.
Project
Assumptions
The Maseru area accounts for over 390,000 of the national population of 2.3m. The estimated labour market for innovation/ICT employment is potentially up to 5,000. This labour pool could however be extended through training and skills development.
Competitiveness Factors
ENGLISH – SPEAKING COLLEGE & UNIVERSITY GRADUATES
Incentives
Low corporate income tax:
• 25%
Training:
• Cost of Lesotho citizens allowable at 125% for tax purposes
Withholding tax:
• 10% on service contracts with non-residents
• 25% on dividends distributed from income by resident companies to non-resident shareholders
• No withholding tax on dividends distributed to Lesotho residents
VAT:
• 15% on goods and services sold in Lesotho
• 0% on direct exports
Risk guarantees:
• Partial credit guarantee through
the LNDC
Support from the LNDC includes:
• Serviced industrial and commercial sites at competitive rentals
• Provision of industrial and commercial buildings at competitive rentals
• Financial assistance on a selective basis
• Investment facilitation services
• Assistance with permits and licenses
• Assistance with company registration
• Assistance with industrial relations issues
• Appraisal of investment projects
• Assistance with preparation of project briefs for the Environment Impact Assessment (EIA) Certification
List of investment opportunities
Investors can establish greenfield operations, with the LNDC providing support through the investment process, site selection, and linkage with relevant government agencies. International BPO giants seeking to diversify their geographic delivery footprint.
Captive centres for large South African and international corporations in banking, insurance, telecoms, and retail.
Voice & Omnichannel CX Hubs (100–300 seats/site)
Multi-tenant floors in Maseru configured for voice, email, chat and social with dual-path fibre, UPS/backup power and disaster-recovery procedures aligned to client SLAs. (Build on the 2021 seat-range and site preference.)
Financial & Insurance Processing (FinOps/Claims/KYC)
Partner with South African FSIs for near-shore back-office and KYC remediation, leveraging English proficiency and quick ramp-up training.
Healthcare Admin & Coding (non-clinical).
Claims adjudication, prior auth and medical coding for SA/UK clients – train via vendor curricula; ensure data-protection controls from day one.
Public-sector Contact Centres.
Deliver citizen helplines, e-services support and revenue hotlines under the Digital Strategy roadmap; aligns with service-quality mandates and local procurement rules. Lesotho Government
E. Knowledge-Process/Tech Support Pods.
Tier-1/Tier-2 tech support, QA testing and content moderation for regional platforms; Maseru’s talent pool and training academies can be scaled with targeted bootcamps.
SDGs alignment
The project aligns with SDGs 8, 9 and 10.
Financial Analysis
A total investment of approximately:
USD 3.6m
comprising of fixed assets of USD 2.45m, pre-production expenditure of USD 976.5m and initial working capital of USD 150k will be required for the establishment of the Call Centre opportunity. The graphs below illustrate a financially viable operation with the opportunity expected to generate a profit throughout its operational life.
In addition to the positive NPV and IRR, the initial investment cost of the project is expected to be fully recovered in just over 9 years. The investment opportunity further responds favourably to the country’s developmental objectives through its positive socio-economic impact in terms of employment creation, economic agglomeration and potential forex earning opportunities.
The enterprise’s annual net profit after tax increases from approximately:
USD 247k
in year 1 to approximately:
USD 2.5m
In year 10.
Similarly, the projected cash flows of the envisaged project indicate that it will generate positive net cash flows throughout the 10-year operational period.
Financial Analysis
The financial analysis of the Call Centre investment opportunity is computed over a ten-year period. Revenue and expenditure projections are in line with industry growth prospects and market potential and have been informed by and benchmarked against industry standards and norms. In addition, assumptions relating to inflation; depreciation and salvage value; and company tax have been worked out based on the existing laws and directives of the country. The figures above represent high level estimates as of October 2025 and are not derived from a full feasibility study. Investors are advised to conduct their own due diligence.
DISCLAIMER
This web page provides a strategic overview. All financial figures are based on a high-level investment opportunity model and should be used as an indicator of potential only. Investors are strongly encouraged to conduct independent due diligence and a full feasibility study with the support of the LNDC to validate all assumptions under current market conditions.