Objective: To establish and implement an industry-led skills development shared facility aiming to enhance the competitiveness of the textile and garments industries in Lesotho in the medium- to long-term: (i) enhance the competitiveness of garment manufacturers through improving their productivity levels, (ii) meet the demands of major buyers to add more value to ‘commodity’ type products currently produced in Lesotho and support emerging product differentiation initiatives of new investors; (iii) slow down the eroding market position of the industry in Lesotho, particularly under AGOA and support diversification into the South African and EU markets; and (iv) prevent any further withdrawal of investors and loss of employment and encourage new investors in the garment sector.

Activities: The following activities will be financed under this sub-component are:

• Establishment and operation of two Lesotho Garment Skills Development Centers: Consultancy services to support the establishment and operation of two Skills Development Centers in Maseru and Maputsoe through (a) registration of the Maputsoe Centers non-profit association of factories in the area, appointment of the Management Councils for both Centers , (b) appointment of two Center Managers and two Accountants for managing the Centers for the project duration on a declining proportion (100% for the first three years, reducing to 67% in the fourth year and 33% in the fifth year), (c) 50% of the cost of hiring contract private specialist training providers including a trainer of trainers for up to 3 years, (d) hiring of a training audit specialist for periodic monitoring and evaluation of training quality and impact.
• Acquisition and installation of equipment to support training and provision of technical support services: Acquisition and installation of equipment to support training and provision of technical support services as follows (a) general and specialized line equipment, primarily sewing machines, (b) automatic fabric laying and laser cutting machine, button holing, button fixing and embroidery machines, (c) Computer-aided Design and Manufacturing (CAD/CAM) laboratory facilities including garment CAD and embroidery software, (d) fabric testing laboratory facilities, and (d) ancillary equipment and facilities such as furniture, computers, teaching aids, manuals, electrical accessories.
•  Refurbishment of the buildings: The project will support the necessary refurbishment of the two buildings, acquisition and installation of required utilities, health and safety equipment and facilities as well as limited improvement of the access road to the centers.

Objective: To add more value to horticultural products grown in Lesotho, particularly vegetables, and tree crops such as apples and cherries, and to link them to markets in South Africa, and the EU (UK) through (i) improving quality, volume and delivery capability of Basotho farmers; (ii) transitioning away from smallholder farming into group or block farming methods; and (iii) production of organic products to help tap into high premium niche markets.

Activities: During the preparation phase (funded partially by the PHRD grant and the PPF advance), initial work has been undertaken to identify two demonstration plots to explore the financial, agronomic and social sustainability of the proposed partnership:

• Land preparation activities;
• Inputs for initial planting of crops and trees;
• Technical support targeted farmer group

Objective: to contribute to and provide support for the GOL strategy for growing the tourism industry in Lesotho and for providing a workable framework for delivering this growth.

Activities: The following activities will be supported:

• Launch and provide support for World Hotel Link: The objective is to strengthen the marketing outreach of local hotels, guesthouses and other tourism businesses by building an online reservation platform (Worldhotel-link.com) and channeling specific capacity building activities to those listed enterprises.
  
  a. Concessioning out to the private sector building and operating of the WHL Lesotho portal. The WHL team will assist the LTDC and LCT in the selection process of a local operator(s) to build and run the portal.
  
  b. Technical assistance to building the content of the WHL Lesotho Portal; provision of training and workshops to the operators and service providers. This activity will be contracted out to the WHL, which will prepare and conduct training of the local operator(s) on the use of the system, web marketing, itinerary packaging, independent travel market workshops, etc; and marketing the service to the market ready and nearly market ready product in Lesotho. A series of market access workshops will be organized by WHL in at least three districts, (Maseru, Quthing and Mokhotlong) in order to attract service providers and possible WHL portal participants from the entire country.

• Support to LCT
  
  a. The project will cover the costs of a competitively selected Executive Director of LCT and provide limited funding for TA and operational costs. The project funding will be provided on a decreasing scale over the live of the project, with 100% in the first year declining to 20% in the final year of the project.
  
  b. After these initial stages of establishing the portal and building content, WHL, LCT and LTDC will continue to work together to support service providers featured on the WHL Lesotho portal, as well as encouraging others to join. It is expected that many of the service providers featured will be encouraged to apply for matching grant funds offered under the LEAP initiative in this project, thereby strengthening the sector focus of the overall project.
• Support to LTDC:
  
  The project will strengthen LTDC for investment promotion, brand development and marketing through the following activities:
  
  a. Investment Promotion. LTDC has a pivotal role in attracting investment to the sector. The project preparation activities have provided for the development of a transparent concessions procedure and manual for at least three targeted sites (for which an MOU will be signed with the MTEC outlining clear guidelines) and the project will support LTDC to target (possibly in partnership with Multilateral Investment Guarantee Agency MIGA) investor missions to Lesotho to showcase these potential concession sites for investment.
  
  b. TA to LTDC in commercial concessioning. The TA will assist the LTDC in developing attractive concession contracts for at least three areas in Lesotho agreed with the Government and LTDC: Liphofung Cultural and Historical site in Botha Bothe district; Tsehlanyane National Park in Leribe; and Sehlabathebe National Park in Qacha's Nek. The sites offer a unique mixture of traditional performances, pony trekking, camp sites, rare indigenous woodland in Lesotho, and spectacular mountain scenery with rich floral and faunal diversity. In addition, the Government and LTDC identified two additional sites, Bokong Nature Reserve in Leribe and Semonkong, for possible concessioning to the private sector.
  
  c. Grading system. Development of a practical and customer oriented Star Grading System for the accommodation sub-sector and associated legal and regulatory reforms.
  
  d. Strategic Plan for LTDC. Assist the LTDC with a comprehensive “roadmap” setting the direction and pace of implementing the LTDC’s mandate of tourism investment promotion, marketing and facilitating tourism private sector development over the next 5 years in a coordinated and focused manner.
  
  e. Brand Development and Marketing Strategy. LTDC will be supported to develop a Lesotho brand and stimulate market demand through a range of targeted marketing and information provision activities. Brand development for Lesotho is critical to address the key challenges identified; lack of awareness of Lesotho as a tourism destination and the poor destination image. Ahead of a landmark year of 2010 for southern Africa, Brand Lesotho will enable the following:
  
  i. Create a distinct identity for Lesotho regionally (alongside more established destinations such as South Africa, Namibia, and Botswana). This is also in line with the indication that Lesotho is largely visited as part of a broader South Africa and Southern Africa tour.
  ii. Bring focus to marketing efforts. This will direct the approach to target marketing, especially in view of limited marketing funds/budget; which need to be channeled for maximum market impact.
  iii. Encourage consistency in how the destination is marketed by both the public and private sector, thereby promoting a focus on “packaging” Lesotho.
  iv. Help to create and maintain a positive image of Lesotho among travel trade and consumers by creating a “unique place in the consumer’s mind” and creating the basis for engaging with /developing ‘relationships’ with the brand.
  
  The main marketing focus will be to build Lesotho’s image as a choice tourist destination through coordinated effort based on an identifiable brand, market segments, and appropriate demand driven product offerings and packages, with emphasis on South Africa as Lesotho’s main tourist market. The promotion components of advertising, media and tour operators’ familiarization, trade and consumer workshops, information materials and PR activities have all been designed to work in tandem to sensitize and create interest in South African as the key segment of consumers and travel trade.
  
  In addition LTDC will be supported to improve the quality and dissemination of marketing collaterals. Tourists are more likely to use local providers if they have information about them, can access them easily, and have appropriate expectations. LTDC has an important role in producing this information promoting products in the destination.