As the Lesotho National Development Corporation is mandated to raise the level of income and employment in Lesotho, the Corporation through various engagements with multiple stakeholders identified that the rental rates charged for both office and retail space needed to be reviewed in order to assist in the growth of Lesotho’s private sector. Below is a press release of the on the rental rates at the LNDC center and the LNDC Development house. We hope these changes will bring a much needed relief for Basotho businesses.
The Lesotho National Development Corporation (LNDC) is a parastatal body established by the LNDC Act No. 20 of 1967. The Act was amended through the LNDC Act No. 13 of 1990 which became effective in June 1993, and was further amended by LNDC (Amendment) Act No. 7 of 2000.
The purpose of the Corporation is to initiate, promote and facilitate the development of manufacturing and processing industries, mining and commerce in a manner calculated to raise the level of income and employment in Lesotho.
In following this mandate, the Corporation has identified some issues it has direct responsibility for in the growth of the business sector in Lesotho. Some aspects range from domestic investor assistance, development of local private sector as well as the promotion of local industries. Among these issues one of the most crucial ones identified is the rental rates the Corporation charges its tenants at its two flagship properties, LNDC Centre and LNDC Development House, this issue was identified as one of the most hindering factors to the growth of local businesses.
The LNDC Board of Directors approved that from the 1st of August 2018 the LNDC rental rates are to be normalized to the following:
LNDC Centre Office Space M95/sqm
LNDC Centre Retail Space M100/sqm
Development House Office Space M120/sqm
Development House Retail Space (Shops) M130/sqm
LNDC Centre Office Space M85/sqm
LNDC Centre Retail Space (Shops) M90/sqm
Development House Office Space M110/sqm
Development House Retail Space (Shops) M120/sqm
N.B. The above rates pertain only to building rent portion of the monthly rent, operating costs and rates portion will continue to be billed as separate items.
Local business is a company with a minimum shareholding of 51% Basotho or that operating as a sole trader by a Mosotho. Definition of a Mosotho is not a naturalized Mosotho but one upon whom Sesotho Law applies.