Introduction
Public procurement plays a central role in Lesotho’s economic development. Government ministries and public entities regularly procure infrastructure works, consulting services, technology systems, and medical equipment to support national development objectives.
In an effort to modernise the procurement system, enhance transparency, and align with international best practices, Lesotho introduced a new procurement framework in 2023 through the Public Procurement Act 2023 and the accompanying Public Procurement Regulations 2023.
These reforms replace the earlier procurement framework and introduce a more structured system governing how government entities purchase goods, services, and works.
For contractors, consultants, suppliers, and investors interested in working with the Government of Lesotho, understanding the new procurement regime is essential.
The Purpose of the New Procurement Framework
The 2023 procurement reforms aim to strengthen governance and improve the efficiency of public procurement. The legislation seeks to promote:
• Transparency in public contracting
• Fair competition among bidders
• Efficient use of public resources
• Accountability in government procurement decisions
The reforms also aim to increase investor confidence in public sector contracting and to ensure that procurement processes meet internationally recognised standards.
Key Institutional Reform: Creation of the Lesotho Public Procurement Authority
One of the most significant institutional developments under the new framework is the establishment of the Lesotho Public Procurement Authority (LPPA).
The Authority is responsible for regulating and supervising procurement activities across government institutions. Its core responsibilities include:
• issuing procurement guidelines and standards
• monitoring compliance with procurement laws
• providing oversight of procurement practices across ministries and public entities
• promoting transparency and accountability in government procurement
This institutional reform replaces the previous oversight system and is intended to provide a stronger regulatory structure for public procurement.
Procurement Methods Under the New Framework
The procurement framework recognises several procurement methods depending on the value and complexity of the contract.
Open Competitive Bidding
Open competitive bidding remains the most common procurement method for large public contracts. This method allows any qualified supplier or contractor to submit a bid.
Large infrastructure projects, particularly road construction projects, are typically procured through open competitive procedures.
In practice, the period between bid opening and contract signing for large infrastructure contracts may take approximately three to four months, depending on the complexity of the evaluation process.
Restricted Procurement
Restricted procurement may be used when only a limited number of suppliers are capable of providing the required services or when the value of the procurement is relatively low.
Under this procedure, the procuring entity invites a shortlist of qualified suppliers to submit proposals rather than conducting a fully open tender.
This method is commonly used for consulting services and specialised technical services.
Prequalification Procedures
For large or technically complex projects, procuring entities may conduct a prequalification process to identify contractors or consultants that meet specific technical and financial capacity requirements.
Only firms that pass the prequalification stage are invited to submit bids during the tender stage.
Prequalification is often used in infrastructure procurement, particularly in sectors such as road construction and engineering works.
The Growing Role of Electronic Procurement
The 2023 procurement reforms also support the gradual introduction of electronic government procurement (e-procurement) systems.
Electronic procurement platforms are expected to improve transparency, streamline procurement processes, and reduce administrative burdens for both government entities and suppliers.
However, while electronic tender submission is becoming more common, certain advanced procurement tools, such as electronic reverse auctions, are not yet widely used in Lesotho.
Opportunities for Contractors and Consultants
Lesotho continues to invest in large development projects across several sectors, including:
• transport infrastructure
• public health infrastructure
• digital government systems
• water and energy infrastructure
Many of these projects are financed through international development partners and multilateral institutions, creating opportunities for both local and international contractors.
Companies interested in participating in government procurement should ensure that they fully understand the procurement framework and tender requirements.
How Legal Advisors Can Assist
Participating in government procurement can involve complex regulatory and contractual requirements. Legal advisors can assist contractors and suppliers by providing guidance on:
• compliance with procurement regulations
• preparation and review of tender documentation
• formation of consortium or joint venture arrangements
• procurement challenges and dispute resolution
• negotiation and drafting of government contracts
Conclusion
The Public Procurement Act 2023 marks an important step in strengthening Lesotho’s public procurement system. By introducing clearer procedures, stronger oversight mechanisms, and greater transparency, the new framework aims to promote fair competition and improve public sector contracting.
For companies seeking to do business with the Government of Lesotho, understanding the procurement rules and procedures is essential for successfully navigating the tender process and securing public contracts.