Mohloai Mpesi
THE Private Sector Foundation of Lesotho (PSFL) is seeking to position the country within South Africa’s expanding Special Economic Zone (SEZ) network by pursuing closer cross-border industrial collaboration at a high-level regional conference in Durban.
The PSFL is participating in the Second International Special Economic Zones Conference, which started today and ends tomorrow, with the aim of attracting investment, strengthening industrial cooperation and advancing Lesotho’s case for a formal cross-border SEZ arrangement with South Africa.
Convened by South Africa’s Department of Trade, Industry and Competition (DTIC) under the theme “Reigniting Industrialisation through World Class SEZs,” the conference has brought together policymakers, investors, development finance institutions and SEZ operators from across Africa and beyond.
South African President, Cyril Ramaphosa, and Deputy President, Paul Mashatile, are expected to address the conference.
Other speakers include Zwelibanzi Sapula of the Southern African Development Community Development Finance Resource Centre (SADC-DFRC), Rian Coetzee of the Industrial Development Corporation of South Africa, Vuyiswa Ramokgopa of the Executive Council for Agriculture and Rural Development, and Dr Manuel Francisco Pedro of Angola’s Luanda-Bengo Special Economic Zone.
The conference is expected to examine emerging global SEZ trends, policy developments, financing mechanisms and international best practices for industrialisation.
PSFL Chief Executive Officer, Thabo Qhesi, yesterday told the Lesotho Times that the conference presents a strategic opportunity to advance Lesotho’s private sector development and investment promotion agenda.
Mr Qhesi said although Lesotho already enjoys a strong reputation for operating successful industrial zones, the country needs greater visibility and stronger integration with South Africa’s rapidly expanding SEZ landscape.
“What Lesotho lacks is not credibility but visibility and cross-border integration with South Africa’s rapidly expanding SEZ footprint,” Mr Qhesi said.
“This brief sets out the rationale for PSFL’s participation, maps Lesotho’s existing strategic initiatives onto South Africa’s SEZ landscape, and identifies concrete areas of collaboration that PSFL can raise with DTIC officials, SEZ operators and investors in Durban.”
He said one of the PSFL’s key objectives is to table a proposal for a Cross-Border Special Economic Zone (CBSEZ) pilot project between Lesotho and South Africa.
“We want to position Lesotho as a candidate for a formal cross-border zone arrangement with South Africa, building on the emerging SADC-level CBSEZ discourse and Lesotho’s own zone track record,” Mr Qhesi said.
“We also want to open a technical dialogue with Maluti-a-Phofung SEZ operators and Transnet-linked stakeholders on how the Trans-Sani Rail Corridor (TSARC) could interconnect with the Durban-Johannesburg corridor.”
The proposed collaboration also seeks to explore logistics integration, improved transport infrastructure and industrial value chains linking Lesotho with South Africa’s major manufacturing hubs.
Mr Qhesi said the foundation would also promote opportunities in renewable energy and green manufacturing by proposing industrial partnerships linked to Lesotho’s hydropower potential.
“We want to scope a potential hydropower-to-Greentech-SEZ offtake or manufacturing partnership, drawing on the Atlantis SEZ model,” he said.
The PSFL also intends to ensure that investor engagement at the Durban conference complements rather than duplicates its ongoing international investment promotion efforts.
“We want to coordinate messaging with the Canada outreach programme so that Durban conference contacts feed into the same investor pipeline rather than a parallel one,” Mr Qhesi said.
He added that bilateral meetings scheduled during the conference would be used to strengthen existing cooperation frameworks between the two countries.
“We intend to use bilateral meetings at the conference to formalise next steps under the Lesotho-South Africa Business Council and CETTEX Memorandum of Understanding frameworks.”
Mr Qhesi said Lesotho enters the discussions from a position of strength, citing international recognition of the country’s industrial zone programme.
He said independent World Bank research has identified Lesotho’s export processing zone programme as one of Africa’s better-performing industrial zone initiatives in terms of both investment attraction and employment creation.
“Lesotho’s export processing and industrial zones have historically outperformed peer programmes in Africa on investment and employment measures, giving PSFL a credible, evidence-backed starting point rather than a cold pitch,” he said.
He also highlighted Lesotho’s strategic geographical position as a significant competitive advantage.
The Maluti-a-Phofung SEZ in Harrismith, Free State, sits close to Lesotho’s border and along the Durban-Johannesburg logistics corridor, making it a natural partner for future cross-border industrial cooperation.
The zone also lies within reach of the proposed Trans-Sani Rail Corridor, which could significantly improve freight movement between Lesotho, Durban Port and South Africa’s industrial heartland.
Mr Qhesi said discussions around Cross-Border Special Economic Zones are already gaining traction within the Southern African Development Community (SADC), particularly as member states seek solutions to labour migration, regional industrialisation and cross-border investment.
“This is a DTIC-convened, government-branded platform, giving PSFL direct access to SEZ operators, provincial economic development agencies and DFI-linked financiers in a single venue, reinforcing the existing Lesotho-South Africa Business Council relationship,” he said.
According to Mr Qhesi, the PSFL hopes to secure a bilateral meeting with DTIC’s SEZ leadership to introduce the cross-border SEZ proposal while also establishing formal working relations with the Maluti-a-Phofung SEZ and the Free State Development Corporation.
The delegation also aims to identify at least three prospective investors or development finance institutions that can be incorporated into the foundation’s broader international investment outreach programme.
Additionally, the PSFL plans to collect information on South Africa’s SEZ incentive frameworks—including tax, customs and employment incentives—which could help inform future updates to Lesotho’s industrial zone policies.
The outcomes of the conference will be presented to both the PSFL Board and the Lesotho-South Africa Business Council together with recommendations on the next steps for implementing the proposed collaborations.
Established in 2009, the PSFL serves as Lesotho’s umbrella private sector organisation, promoting investment, trade facilitation and dialogue between business and government.
Lesotho currently operates export processing zones that have been instrumental in developing its textile and garment manufacturing industry, particularly exports to the United States under the African Growth and Opportunity Act (AGOA).
The country is now seeking to diversify beyond textiles by developing broader manufacturing industries and green industrial zones capable of attracting higher-value investment and creating sustainable employment opportunities.
