Maseru
The Lesotho National Development Corporation (LNDC) has suffered a dramatic financial loss, shifting from an M82.9 million profit in 2018/19 to a staggering M54.4 million loss in 2023/24. This represents a decline of more than 165 percent in just five years, raising deep questions about management, efficiency, and the Corporation’s relevance to Lesotho’s industrial agenda.
Assets Rising, Value Sinking
In 2018/19, LNDC’s performance painted a picture of promise. Revenue stood at M180.3 million, profit surged by 89 percent, and total assets were valued at M1.8 billion. By 2023/24, assets had almost doubled to M3.2 billion, but profits had vanished entirely. Instead of leveraging its growing asset base to expand industries and employment, the Corporation’s operational performance deteriorated to a historic low.
A 39 percent drop in revenue and a 172 percent swing from profit to loss is not a mere business cycle fluctuation. It points to institutional paralysis and poor financial stewardship at the heart of a public enterprise entrusted with building national wealth.
Employment Erosion
The LNDC’s reports often highlight total employment figures under its investment portfolio. Yet the numbers tell a story of consistent decline. Total employment dropped from 47,768 jobs in 2018/19 to 34,151 in 2023/24. That is a loss of more than 13,000 jobs.
Each annual report has tried to dress up this deterioration as “adjustment” or “net change.” But the truth is that the Corporation’s industrial footprint is shrinking. Between 2022/23 and 2023/24 alone, total employment fell by 13 percent, with six company closures and only two new companies launched.
Credit Growth Without Industrial Growth
The value of Credit Partial Guarantee Scheme (CPCG) loans has ballooned from M34 million in 2018/19 to M207.7 million in 2023/24. But these impressive figures mask a worrying trend. The growth in loans has not produced corresponding growth in jobs, exports, or factory capacity.
Instead, LNDC seems to be evolving into a financing agency rather than an industrial development engine. Its increasing focus on loans, guarantees, and balance sheet expansion reflects a loss of direction from production to paperwork.
Weak Investment in People
In 2018/19, LNDC proudly reported paying M1.3 million for staff development, nearly triple the previous year’s figure. Fast forward to 2023/24, and its staff initiatives have been reduced to a handful of trainings and a gym launch. The Corporation that once prioritized human capital growth now appears more concerned with internal optics than results-driven capacity building.
A Distorted Picture of “Value Creation”
LNDC’s “Value Created” reports, polished and professionally designed, have become annual exercises in distraction. They present decorative metrics, isolated achievements, and token gestures that fail to hide a collapsing core. The 2023/24 report is particularly telling: while the Corporation boasts of M3.2 billion in assets, its financial position and industrial output are both in decline.
The inconsistency between asset growth and profitability reveals a deeper governance failure. The Corporation has become asset-heavy but value-light.
National Consequences
Lesotho’s economic struggles are no secret. Unemployment is high, manufacturing is weak, and investor confidence is thin. LNDC’s downward trend exacerbates this crisis. An institution that was meant to lead industrial growth is now bleeding money, losing jobs, and reporting success through colourful infographics instead of measurable impact.
The 165 percent collapse from a record profit to a massive loss is more than a financial embarrassment. It is an indictment of management failure and policy drift. It signals that the Corporation’s governance framework has collapsed under the weight of inefficiency, political interference, and lack of accountability.
Final Reflection
The Lesotho National Development Corporation was established to drive national industrialisation and job creation. Today, it stands as a symbol of what happens when state-owned enterprises become detached from their core purpose.
If LNDC continues along this path, with rising assets but falling impact, Lesotho will remain an economy of potential without progress. The M82.9 million profit of 2018/19 will remain not a benchmark of success but a memory of what responsible leadership once achieved.
