On 1 July 2025, the Ministry of Trade, Industry, and Business Development (MTIBD) implemented a Ministerial Directive dated 30 June 2025 (see below), which introduces a significant policy reform aimed at improving access to business opportunities in Lesotho. In line with the outcomes of the National Youth Dialogue held on 18 June 2025 at the Manthabiseng Convention Centre, the Directive provides for the exemption of all Basotho citizens from paying business registration and licensing fees.
The directive marks a substantial development in the regulatory framework governing company registration in Lesotho. In addition to waiving all applicable registration and licensing fees, the Ministry has also suspended the requirement to produce lease agreements or occupancy certificates during the registration process. These reforms are intended to simplify entry into the formal business sector, particularly for Small, Medium, and Micro Enterprises (SMMEs), and are not limited to youth-owned businesses.
The exemptions introduced under this policy are applicable for a period of three (3) years, subject to review. Furthermore, it has been indicated that amendments will be made to the Business Licensing Act, where necessary, to ensure consistency with the newly adopted measures. These legislative adjustments are expected to institutionalize the reforms and ensure legal certainty in their application.
This initiative represents a deliberate policy intervention to address structural and financial barriers to entrepreneurship in Lesotho. By eliminating upfront financial and procedural constraints, the government aims to expand formal economic participation among citizens, foster innovation, and stimulate local economic growth. The policy is also aligned with broader national objectives concerning inclusive economic development and the reduction of informality in the business environment.
Stakeholders seeking to register new entities or to regularize existing businesses are encouraged to take advantage of this window of regulatory relief. For additional information on the implementation of the directive or for assistance with the business registration process, enquiries may be directed to the Ministry of Trade, Industry, and Business Development.
