Mohale Resort
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Invest in Lesotho’s
Mohale Resort
An opportunity to invest in the development and management of a tourism resort located near the Mohale Dam in the beautiful highlands area of Lesotho.
Introduction
The Proposition:
Renovate and upscale the well-planned former LHWP village – Lower Mohale Village – into a boutique resort with conferencing, lake-based activities (kayaking, boating, fly-fishing), and curated high-altitude experiences.
Set amid basalt cliffs and pristine uplands, Mohale pairs big-water views with signature high-country light – an effortless canvas for premium rooms, warm Basotho-inspired design, and story-rich F&B. Originally built as LHWP management housing (handed to the Ministry of Tourism), the Lower Village has reticulated services, internal roads and street lighting – ideal for an efficient renovation-plus-expansion strategy.
The buildings comprise MOHALE LOWER VILLAGE COMPRISES 107 PREFABRICATED HOUSES. They require renovation. Improvements are also needed to the internal roads and street lighting. The resort has strong potential as a conference centre and as a base from which to explore the superb Highlands area and take part in outdoor pursuits.
The project is located close to the Mohale Dam, about 90 kms East of Maseru in the Lesotho
Highlands.
Strengths & Opportunities
Set amid basalt cliffs and pristine uplands, Mohale pairs big-water views with signature high-country light- an effortless canvas for premium rooms, warm Basotho-inspired design, and story-rich F&B.
Market Evidence
Iconic lake & highlands setting:
Mohale Dam (LHWP) is a headline natural asset with clear potential for non-motorised water sports, guided boating and fly-fishing – high-appeal, low-impact activities that fit Lesotho’s altitude brand.
Access that sells:
Airlink keeps Johannesburg–Maseru short and simple; from the airport, Mohale is a 2–3 hour scenic drive – ideal for 2-night weekenders, MICE pre/post extensions, and self-drive loops with the Eastern Free State/Drakensberg.
Tourism recovery & upgrade cycle:
WTTC’s 2025 research shows Travel & Tourism’s sustained rebound globally; LTDC’s annual arrivals/accommodation reporting confirms Lesotho’s upturn, supporting ADR growth in well-positioned nature products.
Policy clarity for operators:
Tourism Levy now operational (Oct-2022), with accommodation entities contributing 1.5% of room rate – straightforward to price in. e-Visa portal suspended but applications handled via email – simple for agents/guests with pre-arrival packs.
Strategic Advantages
“Experience Elevation” differentiation:
High-altitude climate, four distinct seasons, and luminous night skies create year-round programming – from summer lake days to winter stargazing and fireside culinary experiences.
MICE proximity:
LTDC’s National Convention Centre + 5-star hotel project in Maseru will expand 1–2k delegate capacity, positioning Mohale as the premium two-night pre/post extension for incentives and executive retreats.
Skilled, trainable workforce:
Established accommodation and adventure operators in Lesotho anchor service training pipelines; Mohale can scale talent with targeted, on-site programmes. A POOL OF 4 700 TRAINED OR TRAINABLE EMPLOYEES is available to support various segments of the accommodation sector in Lesotho.
Existing Infrastructure – fast, cost-efficient start-up:
A ready platform of 107 prefabricated houses, internal road networks and reticulated utilities reduces early capex and time-to-market, supports staff housing, and enables selective conversion of prime-view units into guest suites.
Mohale’s dramatic lake-and-mountain setting, four distinct seasons and luminous night skies are a built-in marketing engine that commands rate premiums and lengthens stays.
Government Support – clear PPP pathway:
Designated as a PPP with Ministry of Tourism ownership, the project benefits from a supportive enabling environment and potential fiscal facilitation/incentives where applicable.
Incentives
A low corporate income tax:
• 25% on profits from sales produced in Lesotho
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 LTDC includes:
• Dedicated tourism special development areas (SDAs)
• 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
Regional Access and Market Integration
Lesotho is part of the SADC visa regime. This allows visa free movement entry of SADC citizens for a period of up to 90 days. Lesotho can also benefit from visitors from both the region and the Northern Hemisphere during the Austral summer.
Lesotho’s membership of SADC also improves opportunities for training. The SADC Protocol on the Development of Tourism provides for harmonisation of tourism services and standards. Maseru is the main gateway to Lesotho, 2-3 hours’ drive from Mohale. Moshoeshoe I International Airport in Maseru is served by direct flights to and from Johannesburg, a major international hub. Maseru is 414 kms (4.5 hours’ drive) by road from Johannesburg, 344 kms (6 hours) from Durban and 685 kms (11.5 hours) from Cape Town.
More well-off, middle-class Africans are travelling within the continent for leisure and business. This is helping to boost the global MICE sector, which is expected to GROW TO USD 1.25 BILLION BY 2030. Lesotho already has some expertise in providing services to this market and can support it further with new projects.
The strength of Lesotho’s tourism sector is reflected in business travel spending which currently represents 90% of all spend and is expected to rise by 3.3% pa to 2028. Domestic travel spending will continue to be the most profitable portion of Lesotho’s tourism market.
This is expected to rise by 3.0% pa by 2028. The market’s current preference for Lesotho as a business travel destination opens the door for a niche MICE strategy combining an enhanced extended stay concept built around Brand Lesotho’s “Africa’s Best Adventure and Ecotourism Destination’’ tagline.
List of investment opportunities
Boutique Lodge & Chalets (Phase 1):
Renovate priority units to 24–32 keys (king/twin/family) with thermal efficiency and panoramic decks; add 8–12 new premium keys in Phase 1B.
Guest magnets:
Lakeside hot-tub pods, tasting-menu nights with local produce, gear valet and drying rooms, compact wellness spa.
Conferencing & Incentives Hub:
Flexible 120–180-delegate venue (sub-divisible), boardrooms and breakouts; hybrid meeting tech for MICE extensions from Maseru.
Curate incentive-ready experiences:
(sunrise lake walks, pony trails, chef’s table, stargazing).
Lake & Highlands Adventures:
Low-impact lake activity centre: guided kayaking/boating, fly-fishing, shoreline trails and birding.
Seasonal highlights:
Summer water circuits; winter “clear-sky astronomy” with hot-beverage evenings.
Destination Services & Retail:
Outfitters, local craft studio, grab-and-go trail food, photography & content desk (monetise social-share moments).
Delivery model:
PPP structure with investor-operator developing, managing and marketing locally and internationally; public owner provides site and enabling approvals; scope to integrate community suppliers and conservation programming.
Project Assumption
This is a potential PPP project. The investor would develop the site, manage it and market it locally and internationally. The site is owned by the Ministry of Tourism. The opportunity is to attract foreign visitors from further afield and diversify the current market beyond Lesotho and South Africa.
The project would align with SDGs 1, 8 and 10.
Placekeeper Image
The financial analysis of the Mohale Resort 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 January 2021 and are not derived from a full feasibility study. Investors are advised to conduct their own due diligence. There are no specific investment incentives for the tourism sector in Lesotho, except for the MICE sub sector.
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 LTDC to validate all assumptions under current market conditions.