Revenue Services Lesotho (RSL) started a new process on 1 July 2025 that could change the way foreign businesses operate in Lesotho. It’s called the Agents of Foreign Firms (AFF) declaration, and it’s been developed with help from the Agents of Foreign Firms Association of Lesotho (AFFAL). The goal is to make sure trade is more transparent, taxes are paid properly, and Basotho benefit more from cross-border deals.
For a long time, some foreign companies have worked through informal agents. This often meant they didn’t pay the right taxes, moved money out of the country without being noticed, and treated workers unfairly. Now, with this new system in place, that kind of behaviour will be harder to get away with.
The new AFF declaration is built into systems that RSL already uses to manage trade and taxes, like ASYCUDA World and the Public Sector Revenue Management System. This means RSL can now track things more closely, making sure both the government and local workers get a fair deal.
What’s different about this system is that it gives Basotho agents the legal right to represent foreign companies. Only licensed, local agents will be allowed to submit customs documents and handle trade on behalf of foreign businesses. That way, Basotho won’t just be left out of deals that happen in their own country, they’ll be right in the middle of them.
This rule is backed by Code 8294 from the Ministry of Trade, Industry, and Business Development. It’s not just about paperwork…it’s about giving locals more control in the economy. If a foreign company wants to do business in Lesotho, they’ll have to work through someone who’s been approved and licensed right here.
RSL has put systems in place to make sure the rule is followed. If someone isn’t registered, they won’t be allowed to submit customs declarations. That means less tax dodging and fewer loopholes. And with Lesotho taking this kind of step, the country is showing real leadership in how trade should be handled in the region.
This change isn’t just about rules, it’s about fairness. It’s about making sure money made in Lesotho benefits the people who live here. It’s about protecting jobs, collecting the taxes that fund public services, and giving Basotho a bigger role in international trade. A Memorandum of Understanding signed in June 2024 between RSL and AFFAL makes this partnership official.
With this move, Lesotho is making trade work better for everyone, not just big foreign companies, but local people too.
