Doing Business in Lesotho 2026: Taxes, Ownership Limits and AGOA
This guide to doing business in Lesotho explains who may own what, how taxes work, why the loti tracks the rand and what AGOA to 2028 means for exporters. The post Doing Business in Lesotho 2026: Taxes, Ownership Limits and AGOA appeared first on The Rio Times .
Lesotho is a small, landlocked kingdom nestled within South Africa's borders. Foreign investors are welcomed in key industries like manufacturing, mines, and energy, while small businesses must remain in local hands. The nation's economy, valued at around US$2.6 billion in 2025, is expected to grow modestly at 1.2% in 2026 and 2027.
Foreign ownership in large-scale businesses is unrestricted, but caps at 49% in designated sectors. Small-scale businesses face a 49% foreign investment limit. Foreigners can own land with a local partner controlling at least 20% of the property. Corporate income tax sits at a competitive 25%, while a 15% VAT applies to most transactions. There is no double taxation treaty with the United States, so US investors should plan accordingly.
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