Staff Reporters
By the time the Ha Belo industrial estate in Botha Bothe district opens in early 2025, four years will have passed since the completion of the M900 million infrastructure development project—a delay that has held up the creation of over 14,000 jobs critical to alleviating poverty.
With Lesotho currently grappling with a severe unemployment crisis, exacerbated by recent job cuts of over 16,000 in the manufacturing sector following the COVID-19 pandemic, the opening of the Ha Belo industrial estate cannot come soon enough.
Although the construction of 16 factory shells and associated infrastructure was largely completed on schedule in 2021, the industrial park has remained a “white elephant” due to the failure of authorities to secure bulk water and power supply components necessary to service the site.
In 2020, during a high-level tour of the park, the Lesotho National Development Corporation (LNDC)—the agency overseeing the project—reported that government approval for financing these utility services had been delayed. At that time, then-Finance Minister Dr Moeketsi Majoro promised swift action to resolve the matter to expedite job creation.
Once fully operational, the industrial estate will require an estimated 7.5 megavolt amps (MVA) of power and about four million litres of water daily to meet the needs of the estate and its surrounding services.
The 16-shell factory project is just the first phase of the development. Subsequent phases are expected to add 51 more factory shells and create an additional 41,000 jobs once completed.
In an interview with Newsday this week, the LNDC confirmed that the estate’s opening is anticipated for January 2025, as both the water and power supply projects are nearing completion and are expected to be finished by the end of 2024.
“Both projects are at an advanced stage and should be complete by the end of this calendar year. Both projects are funded by the government of Lesotho,” the LNDC said in a statement to Newsday.
The delay in creating 14,000 jobs is not the only consequence of the estate’s prolonged non-operation. There are concerns about how long potential tenants will wait for the park to become operational, with some likely already having moved on to other, better-prepared regions.
“We have a healthy project pipeline, but no commitments have been made so far pending completion of the estate,” the LNDC stated.
In her 2024/25 budget speech, Finance Minister Dr. Retšelisitsoe Matlanyane expressed optimism about the estate’s tenancy prospects.
“The Lesotho National Development Corporation has this year received firm indications for new investments amounting to M696 million to utilise this infrastructure. Interest spans several sectors, including textiles, clothing, stainless steel bars, electrical wiring accessories, leather seat covers, laundry services, fabric dyeing, and garment manufacturing.
“This makes investment prospects over the medium term very bright. We are positive that these investments will materialise and create substantial employment opportunities. Specifically, these investments are poised to generate over 5 500 jobs,” Matlanyane stated.
The costs of the project are expected to have increased significantly due to inflationary pressures. The LNDC has indicated it will disclose the final project cost upon the completion of the remaining components.
Additionally, the delayed opening has led to vandalism and theft at the estate, causing damage estimated at over M700,000. In response, the LNDC has hired security personnel to enhance protection of the site.
