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Impact of COVID-19 on Manufacturing Industry in Lesotho: Case study of LNDC Assisted Companies

Impact of COVID-19 on Manufacturing Industry in Lesotho: Case study of LNDC Assisted Companies

1. INTRODUCTION AND BACKGROUND

The manufacturing industry in Lesotho, like in other countries across the globe, faced supply chain disruptions and halts to production following the announcement of national lockdown in March 2020 by the Prime Minister. The Lesotho National Development Corporation (LNDC), which has been mandated to oversee and implement industrial policy on behalf of the Government of Lesotho, undertook a survey to assess the extent to which the LNDC-assisted companies have been affected by the lockdown. The study was commissioned in collaboration with the Central Bank of Lesotho (CBL) and the Bureau of Statistics (BOS).

The report has been consolidated based on submissions from sixty-four (64) companies out of seventy-six (76) which constitutes 84% response rate on the survey. It is also important to note that activities of LNDC-assisted companies do not reflect the national manufacturing activity, hence the study will only account for companies under the LNDC portfolio at 84% response rate as indicated. The manufacturing activity by LNDC-assisted companies contribute about seventy percent (70%) of total manufacturing at the national level.

The LNDC hosts seventy-six (76) companies in its eight (8) industrial estates, which are located across the country. Most of the companies (26%) originate from China and RSA; and serve the US and RSA markets, respectively. Some of these companies were established as far back as 1989, with majority of companies established between 2006 and 2020.

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