Discusses the legal requirements for selling to the host government, including whether the government has agreed to abide by the WTO Government Procurement Agreement or is a party to a government procurement chapter in a U.S. FTA. Specifies areas where there are opportunities.
Foreign firms may fully participate in government procurement; however, they have to first register as legal entities, apply for trading licenses, and register with the Lesotho Revenue Authority for tax purposes. Lesotho is not a signatory to the WTO Agreement on Government Procurement, which means that it is not bound by conditions prohibiting specification of locally-made products in tenders. The Public Procurement Regulations 2007 has decentralized public procurement to line ministries, with each contracting authority operating its own tender panel, which is responsible for the decision on the award of contract. The Procurement Policy and Advisory Division (PPAD), under the Ministry of Finance, is the regulatory body with overall responsibility on Lesotho's public procurement regime. In evaluating proposals, the procurement unit grants a margin of preference for nationals as follows:
 
  • 15% to a local business with a majority shareholding of at least 51%; 
  • 10% to (a) a business owned between 30% and 50% by Lesotho nationals, (b) a tenderer bidding to supply goods of Lesotho origin, (c) a tenderer performing at least 50% of the contract in Lesotho and using and developing the capacity of Basotho staff, (d) a tenderer subcontracting at least 50% of the contract to one or more Basotho businesses, (e) a tenderer that has the largest use of locally produced goods, materials, and services, or (f) a tenderer employing the largest share of local labor; and, 
  • 5% to a business owned between 10% and 30% by Lesotho nationals.
 
According to the Lesotho Highlands Water Commission, for the LHWP Phase II preference for tenders will be given to Basotho, South African, and SADC contractors. Companies from other countries will be considered when a specific skills set is not available locally or regionally.
 
There is no central online publication or website where government tenders are advertised. U.S. businesses interested in the Lesotho government tenders should regularly check local and South African newspapers.

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