Knowledge Process Outsourcing
Knowledge Process Outsourcing
Maseru presents an attractive option for Knowledge Process Outsourcing businesses looking to support local and international clients.
Introduction
- Financial services
- Research and development (R&D)
especially in mining, agriculture and
manufacturing - Business operations (core management
functions such as HR, procurement,
logistics, accounting, IT) - Legal, clerical and company
secretarial business - Medical & healthcare management services
- Data analysis and interpretation.
Strengths &
Opportunities
KPO and BPO are priority sectors of the Government of Lesotho. The country and its capital, Maseru, offer an educated and motivated local workforce that has shown itself to be readily trainable and flexible.
Its steady supply of well-educated graduates is particularly accessible for potential BPO and KPO employment. Skilled and semi-skilled workers are available to meet immediate needs and may also be developed over the short to medium term. Support is available to assist in training and skills development.
A growing number of companies utilize KPO in Lesotho, either in their own facilities or outsourced locally. In most cases, KPO businesses use Lesotho as a base to grow international client contracts in a cost competitive manner. This can be done as a standalone business investment or with a number of established local business partners.
Maseru KPO offers
A KPO facility in Lesotho’s capital has numerous advantages. A and B grade office space is available in the main Kingsway district and in other business and commercial districts. Land is also available for bespoke
developments in newly zoned business precincts.
Supported by competitively priced office space, ICT and other services, companies will find Lesotho to offer a range of scalable options to suit business needs, save costs or provide other resources.
Lesotho/Maseru can also meet the KPO needs of many businesses. The same applies to the BPO business needs of a wide range of firms. Companies that engage in KPO in Lesotho
can typically control their international employment costs. Lesotho based KPO can fill the gap for skilled employees in a particular
field. It also frees up existing staff, including management, to do other work, boosting their efficiency and productivity.
Strengths &
Opportunities
Lesotho offers the same or similar legal, language, and cultural environment found in South Africa.
Yet its unique sovereign status stimulates in local people a national pride that often leads to strong business loyalty, an appreciative workforce that can be easier to retain in positions of quality, sustainable and equal opportunity-based employment.
Through the LNDC, business investors can be shown around the city of Maseru to meet existing businesses, talk with labour representatives and training companies. A tour can be made of the office supply in Maseru, which can offer:
HIGH LEVELS OF CONNECTIVITY
Lesotho has a partially open ICT sector. It has a clear data policy in the form of the Data Protection Act of 2013. Lesotho has stringent IP protection disciplines through the Everything But Arms initiative. It has no data localisation requirements, which creates opportunities for investment.
Like South Africa, Lesotho has high levels of connectivity through three main submarine cables: Eastern Africa Submarine Cable System, Seacom and the West Africa Cable System. Internet connectivity is well provided for in Maseru.
With regard to IP, Lesotho is a member of the African Intellectual Property Organisation, aimed at enhancing IPR protection. Lesotho belongs to the Berne and Paris Conventions which protect copyright and patents.
PERFECTLY SITUATED
Lesotho’s capital Maseru is less than one hour’s flight time from Johannesburg. The CBD is a 35 minute ride from the airport. Maseru has excellent road connections to the neighbouring cities of Johannesburg (4h 30m), Bloemfontein (1h 50m), Durban and East London (6h). The country is in the heart of South Africa, making it an ideal base to
serve southern Africa and other global customers.
Fiscal Incentives
Corporate tax: 10% on profits from sales of agricultural goods produced in Lesotho Training: Cost of Lesotho citizens allowable at 125% for tax purposes
Withholding tax:
- 10% on service contracts with non-residents
- 25% on dividends distributed from income by resident companies to non-resident shareholders
- No withholding tax on dividends distributed to Lesotho residents
VAT:
- 15% on goods and services sold in Lesotho
- 0% on direct exports
Risk guarantees:
- Partial credit guarantee through the LNDC
- Tailor-made, agriculture-specific loan through the Post Bank of Lesotho
Specific incentives for the horticulture sector:
- Access to a Sesotho language technical training manual for local workers in on-farm and crop management
- Access to demonstration and crop pilot plots
- Facilitation support to identify and mobilize village level farmer engagement
- Access to technical data on historical crop performance
Support from the LNDC includes:
- Serviced industrial and commercial sites at competitive rentals
- Provision of industrial and commercial buildings at competitive rentals
- Financial assistance on a selective basis
- Investment facilitation services
- Assistance with permits and licenses
- Assistance with company registration
- Assistance with industrial relations issues
- Appraisal of investment projects
- Assistance with preparation of project briefs for the Environment Impact Assessment (EIA) Certification
The project would align with SDGs 1, 2, 8, 9, 10 and 15.
Financial Analysis
In addition to the positive NPV and IRR, the initial investment cost of the project is expected to be fully recovered towards the end of year 6. The investment opportunity further responds favourably to the country’s developmental objectives through its positive socio-economic impact in terms of employment creation, economic agglomeration and potential forex earning opportunities.
in year 10. Similarly, the projected cash flows of the envisaged project indicate that it will generate positive net cash flows throughout the 10 year operational period.
Financial Analysis
Lesotho National Development Corporation
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