Transfer Policies Profits earned on capital raised within the local banking system may be required to obtain foreign exchange licensing from the Central Bank before transfer abroad. More generally, the transfer of dividends, interest, royalties and profits to nonresident investors must be approved in advanced by the government. In practice, the government does not restrict such capital transfers. Foreign proceeds from exports must be repatriated into Lesotho within 6 weeks of shipment. Only a third of the costs of imports may be paid in advance.
Dividends transferred abroad are subject to a ten percent withholding tax.
There is no queuing for foreign exchange, given the Loti's free convertibility with the Rand. Expropriation and Compensation Lesotho has no history of expropriation except for public purposes, in a non-discriminatory manner. There is no history of nationalization of private investments. Dispute Settlement Lesotho is a member of the International Center for the Settlement of Investment Disputes, and has expressed its readiness to accept binding international arbitration of investment disputes. The Government has no history of investment disputes.