The small southern African country of Lesotho, home to roughly 2 million people and with a land mass as small as Oyo State in south western Nigeria, no longer wants foreign ownership of most businesses in the country. The country’s minister of trade and industry, Thabiso Molapo has issued a new set of licensing regulations to that effect. 

“The regulations were triggered by a realisation that the majority of businesses are owned by foreigners,’’ Tšita-Mosena Movement for Economic Change (MEC) deputy leader, who filed a motion in Parliament earlier this year that gave birth the new legislation, called the Business Licensing and Registration Regulations 2020, said. 

Here Is What You Need To Know

• According to Tšita-Mosena, it has become unbearable for businessmen in Lesotho to be part of most businesses as they have been literally chased out by foreigners who have invested in small businesses around the country.
• The new regulations therefore bar foreigners in the country from owning and operating certain businesses.

Lesotho business rules foreigners Lesotho business rules foreigners

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Here Is A List Of Businesses In Which Foreigners Are Shut Out 

• International road freight and logistics, road transport and logistics, and motor dealership.
• Real estate agencies, clearing agencies; warehouse activities, retail sale of household fuel such as paraffin, bottled gas and coal.
• Fast food businesses without operating full restaurant services, hairdressing and beauty treatment salons.
• Repair and maintenance of motor vehicles and motor cycle businesses.
• Businesses of cleaning cars; raising of livestock or sale of livestock or their products.
• Tour services and operations. 
• Cleaning company; landscape care and maintenance services.
• Photographic businesses.
• Businesses via stalls and market of food, beverages and tobacco products.
• Businesses of selling any textiles, clothing or footwear via stalls.
• Business agents or brokers in any specialized stores, including wholesale and retail sale of health-related articles or products.
• Sale of animal feeds, including animal and crops medical goods and chemicals.
• Sale of bread and confectionary products.
• Sale of motor parts and accessories.
• Motor vehicle repair businesses which includes the sale of vehicle tyres, parts and motor-cycle parts.
• Sale of alcoholic beverages whether or not consumed on the spot or not, meaning they cannot own off-sales, taverns, shebeens and public bars.
• Wholesale and retail sale of meat and meat products, fruits and vegetables.
• Sale of prepared meat and meat dishes whether consumed on the spot without operating full restaurant services.
• Supply of liquefied petroleum gas and petroleum products.
• Retail sale of hardware, paints and glass products, pharmaceutical and medical goods, cosmetics and toilet articles in specialized stores, including wholesale and retail sale of health-related articles or products.
• Mobile food services and other food services. 
• Printing and business support services such as photocopying, document preparation and other specialised office support services.
• Electrical, plumbing and other construction installation activities.
• Welding or ownership of metal waste or scraps.
• Repair of footwear and clothing. 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer