Lesotho’s digital economy is growing at a remarkable pace. More businesses are selling online through Facebook, WhatsApp, Instagram and TikTok. Mobile money and digital payments have made it easier for small entrepreneurs to reach customers, deliver goods and accept payments. For many young Basotho, online trading has become a primary source of income. Yet despite the growth of this digital marketplace, Lesotho’s legal framework has not kept up with the realities of modern e-commerce.
The biggest challenge is the absence of a dedicated e-commerce law. Lesotho has been working with the Electronic Transactions and E-Commerce Bill for many years, but it has not yet been enacted. Without this legislation and its accompanying regulations, digital trade operates without clear rules on electronic contracts, electronic signatures, online consumer protection, digital records or automated transactions. Although traditional contract law still applies, it was never designed for fast, platform-based online commerce, cross-border shopping or disputes involving social media transactions.
A positive development is the enactment of the Data Protection Act, which establishes rules for handling personal information. Online sellers routinely collect customer names, phone numbers, delivery addresses and payment confirmations. The Data Protection Act introduces important requirements for consent, security, retention and the rights of data subjects. In practice, however, many online traders remain unaware of the Act or do not have systems in place to comply with it. As a result, data protection exists in law, but practical compliance across the digital marketplace remains inconsistent.
This gap between a modern data protection law and the absence of an e-commerce law creates an uneven regulatory environment. Consumers may have privacy rights, but they have limited statutory protection if goods are not delivered, if items arrive damaged, or if sellers misrepresent what they are offering. Many transactions rely on screenshots, chats and informal communication. When disputes arise, the lack of a specialised legal framework means that parties often settle matters informally or abandon claims altogether.
Cross-border digital trade adds further complexity. Many Basotho businesses import goods from South Africa, China and other countries through online platforms. Questions regularly arise about VAT, customs duties, delivery delays and refunds. Without an operative e-commerce law or harmonised regional digital trade rules, it becomes difficult to determine which country’s laws apply or whether online terms and conditions can be enforced. As digital trade expands within SADC and SACU, clarity in this area is becoming increasingly important.
Despite the gaps, the growth of online commerce presents a major opportunity for Lesotho. Enacting the Electronic Transactions and E-Commerce Bill would provide immediate benefits. It would strengthen consumer protection, formalise online trading and give businesses a clear understanding of their rights and responsibilities. It would also align Lesotho with regional and global digital trade standards, making it easier for local businesses to operate confidently across borders.
For legal practitioners, this developing area offers a new and important advisory space. Businesses need assistance with drafting enforceable online terms and conditions, managing online risks, complying with the Data Protection Act, navigating cross-border disputes and protecting their digital trademarks. Larger companies exploring online operations must ensure that their systems, marketing processes and customer onboarding procedures comply with privacy and digital trade requirements.
Lesotho’s digital marketplace is innovative and full of potential. To unlock its full value, the country needs a modern legal framework that supports safe, predictable and fair online commerce. The introduction of the Data Protection Act is a key step. The next step is to complete the digital trade ecosystem by bringing the Electronic Transactions and E-Commerce Bill into force. Doing so would provide the legal certainty needed to support entrepreneurs, protect consumers and modernise Lesotho’s commercial landscape for the digital era.