Lesotho plans to build a 0.2Mta plant to meet cement requirements for the country’s second phase of its Lesotho Highlands Water Project (LHWP) and reduce reliance on imported cement from South Africa.
Joshua Setipa, CEO of Lesotho National Development Corporation (LNDC), told South Africa Commercial Prop News: “We are keen on getting phase 2 going as that would stimulate demand and provide much-needed infrastructure.”
Lesotho has reportedly begun talks with major cement producers about the possibility of building a cement plant that would satisfy consumption in this landlocked country and enclave which is completely surrounded by its only neighbouring country South Africa.
“What we are looking for is to leverage the demand arising from phase 2 construction activity to build a cement factory in Lesotho so that we no longer remain dependent on South African cement. That holds true for a range of products that will initially benefit from phase 2 activity and then continue for decades to come,” Setipa added.
The LNDC provides finance such as loan guarantees and advice for both foreign direct investment (of which about 80 per cent originates in SA) and domestic investment. Where necessary‚ it will take an equity stake to mitigate risk.