About PSCEDP

The Private Sector Competitiveness and Economic Diversification Project (PSCEDP) is the project of the Government of Lesotho under the Ministry of Trade and Industry, Cooperatives and Marketing with funding from the World Bank. The key mandate of this project is to facilitate private sector investment in Lesotho by improving the business environment and by diversifying sources of growth for Lesotho’s economy. The project first came into effect in 2007. PSCEDP II was relaunched in 2013 to further amplify the successes of the initial project phase. The project is aligned with the Government of Lesotho’s National Strategic Development Plan II (2018-2022) with special focus on economic diversification in the non-textile sectors such as horticulture and tourism, improving the status of Lesotho as an investment destination of choice based on the ease of doing business index as well as private sector-led economic growth. Overall, the Project is envisaged to increase Lesotho’s annual GDP growth by 5%.

Key points on ease of

Doing Business In Lesotho

PSCEDP makes use of a results-based approach by using the World Bank Report, Ease of Doing Business Report. This report collects data on indicators that create a conducive environment for private sector development. PSCEDP focuses on this following five indicators:

  • 1. Starting a Business

    According to the indicator on the Doing Business Report 2019, it takes 7 days to register a business in Lesotho which was reduced from 28 days with a ranking of 119 out of 190 countries. This rating is based on the procedures, time, cost pain in minimum capital to start a business. Read More...

  • 2. Dealing with Construction Permits

    Lesotho is ranked 171 out of 190 countries on dealing with a permit indicator. It takes 183 days to obtain a construction permit. This ranking is measured the processes, and number of days required to obtain a construction permit. Read More...

  • 3. Getting Credit

    Lesotho is ranked 85 out of 190 countries on the indicator of access to credit. This indicator is measured by Movable collateral laws and credit information system. Read More...

  • 4. Trading Across Borders

    Lesotho is ranked 38 out of 190 countries, this ranking measured on time and costs (excluding tariffs) associated with documentary compliance, border compliance and domestic transport. Read More...

  • 5. Resolving insolvency

    The rating for Lesotho is 126 out of 190, making it one of the worst performing indicators. PSCECD has assisted them to improve the country’s legal framework in this area but the indicator is still low. This can be attributed to the challenges of Lesotho’s political situation which has not been stable enough, for real change to happen in the legal sector. Read More...

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Updates

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