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Public Procurement in Lesotho

Public Procurement in Lesotho plays a pivotal role in government service delivery, infrastructure development, and socio-economic transformation within a lower middle-income economy. Public procurement represents one of the largest channels of public expenditure and is central to supporting national development priorities.

The procurement system in Lesotho operates within a structured legal and institutional framework overseen by a dedicated regulatory authority. Procurement activities are conducted across ministries, departments, agencies, and parastatals, with increasing emphasis on transparency, value for money, and sustainable public spending.

For domestic suppliers, contractors, and international firms, government tenders in Lesotho offer access to a regulated procurement market, particularly in infrastructure, public services, and donor-supported programs.

Country & Economic Overview

Lesotho’s economy is closely linked to public expenditure, regional trade, and development assistance. Public procurement therefore serves as a key economic lever for delivering infrastructure, social services, and policy objectives.

Public Procurement Governance Framework

The institutional oversight of public procurement in Lesotho is exercised through a centralized regulatory body.

The PPAD is responsible for regulatory oversight, advisory services, and capacity building, while procurement execution is carried out by individual procuring entities.

Legal & Regulatory Framework

The public procurement law in Lesotho is governed by the Public Procurement Act and associated regulations, recently strengthened by the Public Procurement Act of 2023.

• Value for Money: Embedded in the Public Procurement Regulations 2007.
• MEAT: Provided under Article 45 of the Regulations.
• Life Cycle Costing: Introduced under the Public Procurement Act 2023.
• SME Participation: Supported under Articles 62 and 78 of the 2023 Act.
• Domestic Preference: Regulated under Article 12 of the Regulations.

The legal framework also establishes bid securities, bid validity periods, public bid openings, complaint mechanisms, and disclosure obligations.

Procurement Procedures & Thresholds

Procurement procedures in Lesotho are governed by defined thresholds and standardized methods.

• Open competitive bidding is the primary procurement method.
• Advertisement periods are regulated under the Procurement Regulations.
• Standstill periods apply across goods, works, and services contracts.
• Direct contracting thresholds are defined in the 2018 Amendment Regulations.

These procedures are designed to promote competition, fairness, and accountability across procuring entities.

E-Procurement System in Lesotho

The eProcurement system in Lesotho is currently limited in scope and administered through the Ministry of Finance.

The government is undertaking an e-GP readiness assessment as a preparatory step toward a more comprehensive electronic procurement platform.

Procurement Market Characteristics

Public procurement in Lesotho is distributed across goods, works, and services.

• Goods: Office supplies, equipment, and consumables.
• Works: Infrastructure, construction, and public facilities.
• Services: Consulting, maintenance, and professional services.

Both domestic and international firms participate, particularly in donor-funded and infrastructure-related procurement.

Transparency, Complaints & Oversight

Lesotho’s procurement system provides formal mechanisms for oversight and dispute resolution.

• Complaint resolution period averages 15 days.
• Accepted complaints are reviewed under defined regulatory timelines.
• Regulatory oversight is exercised by PPAD.

These mechanisms support accountability and supplier confidence in the procurement process.

Sustainability & Green Public Procurement

Lesotho has adopted policy-level commitments supporting sustainable public procurement.

• Green procurement strategies are referenced in the Public Procurement Policy of June 2017.
• Procurement harmful to the environment is excluded under the 2023 Act.
• Disposal requirements are defined under Article 150 of the Public Procurement Act 2023.

Green procurement practices are encouraged across all ministries and agencies, although they are not mandatory.

Social & Ethical Procurement Considerations

The procurement framework includes provisions promoting inclusive and equitable participation.

• Legal support for women-owned businesses.
• Provisions for businesses owned by disadvantaged groups.
• No mandatory ethical sourcing or labor standards requirements.

Key Challenges & Practical Insights for Bidders

• Capacity constraints within procuring entities.
• Limited use of electronic procurement tools.
• Gaps in standardized bidding documentation.
• Reliance on donor-supported procurement.

Practical bidding tips

1. Closely follow PPAD regulatory guidance and thresholds.
2. Prepare complete and compliant bid documentation.
3. Engage early with procurement plans and advertisements.
4. Consider partnerships for complex or large-scale projects.

Overall, Public Procurement in Lesotho offers a regulated and evolving procurement environment where informed and compliant bidders can participate effectively, particularly in infrastructure, public services, and sustainability-linked projects.