A critical analysis into the land tenure system in Lesotho and its implication on foreign investment

Abstract

This mini dissertation will analyse whether Lesotho has in place land laws and policies that ensure that land in the country contributes significantly towards the country’s economic development. Land is an important resource for a country’s economic development. This is because land is needed for the country’s agricultural activities again, land ownership is key in promoting investment since land can serve as collateral in order for one to access credit. In order to ensure that land is used for the betterment of a country’s economy, it is essential for a country to have laws and policies that provide assurance of land ownership and security of tenure. The land tenure system in Lesotho has undergone numerous reforms but to this day foreign investors are restricted from owning rights to land. This restriction is despite the fact that foreign investment form an integral part of the country’s economic development. The manufacturing sector which is dominated by foreigners is one of the most successful sectors in Lesotho. Its success is as a result of the involvement of Foreign Direct Investment (FDI). Based on these observations, a recommendation is made that foreigners are permitted to hold title to land in order to attract them to invest further in Lesotho.