Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Lesotho Considers Investments From South African Textile Groups

March 15 (Bloomberg) -- Lesotho, the mountainous African kingdom, said it’s considering investments from textile companies that are threatening to close down factories in South Africa because of an increased minimum wage.

The Lesotho National Development Corp. is studying applications from 380 companies which are considering moving to Lesotho or Swaziland, said Lesa Makhoalibe, an official at the investment agency, in an e-mailed response to questions today.

“Any kind of job creation is an advantage to the country, especially in the labor intensive clothing and textile sector,” she said. Lesotho will have to be “very selective” about which investments is approves because it doesn’t have the infrastructure to accommodate a large number of companies, she wrote.

Some Chinese and Taiwanese-owned factories at Newcastle, in South Africa’s KwaZulu-Natal province, temporarily halted operations last year amid a dispute over minimum wages. Both Lesotho and Swaziland, which border South Africa, rely on income from a regional customs union for the bulk of their budget revenue.

While the factories will have to meet Lesotho’s minimum wage standards, the country has lower cost structures than South Africa, Makhoalibe said.

To contact the reporter on this story: Motheolane Chakela in Maseru at mchakela@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.