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ZMG Isuzu launches dealership

Moroke Sekoboto

THE Zakhura Motor Group (ZMG) Isuzu has officially launched its dealership in Lesotho after starting operations in early June this year.

The dealership follows the Lesotho National Development Corporation (LNDC)’s 2022 call for expressions of interest to invest in, manage, and operate an Isuzu commercial vehicle dealership in Lesotho — a process from which ZMG emerged as the preferred bidder.

Speaking at the official launch held at Ha Thetsane on Thursday, LNDC Interim Chief Executive Officer, Advocate Molise Ramaili, said the milestone marked the fulfilment of a vision that began two years ago.

“On the 2nd of August 2023, we were here at the same location, but under very different conditions. That day marked the sod-turning ceremony on undeveloped land, which has now been transformed into the dealership we see today,” Adv Ramaili said.

He said LNDC had remained “actively involved — not as a distant observer, but as a committed partner working closely with ZMG and Isuzu South Africa to navigate hurdles, unlock bottlenecks, and ensure that this vision became a reality”.

“By virtue of its mandate, LNDC initiates, promotes, and facilitates investment into Lesotho. The establishment of this Isuzu dealership is a tangible example of that mandate in action and aligns squarely with our diversification strategy anchored in the National Strategic Development Plan II (NSDP II), which charts a course toward a private sector-driven, export-led economy.”

He said the automotive industry had been identified as a key pillar of Lesotho’s industrial development strategy. To support this vision, LNDC is leveraging Special Economic Zones (SEZs) as platforms to attract investment in automotive components manufacturing, assembly, and complementary industries.

“Historically, Lesotho’s manufacturing sector has been dominated by textiles and garments. While these industries have played an important role in job creation, we are now intentionally broadening our industrial base to include sectors such as leather seat cover manufacturing for premium automotive brands like BMW and Volkswagen, as well as electronics, food and beverages, and cement.

“Electronics and automotive components represent a particularly promising niche given Lesotho’s strategic proximity to South Africa and the global reach of its automotive industry. LNDC’s current strategic plan prioritises institutional legitimacy, interoperability, and network optimisation — encapsulated in our motto: ‘Together we build sustainable industry’. This is not just a slogan; it reflects our commitment to ensuring that Lesotho is fully integrated regionally and into global value chains.”

He added that LNDC’s efforts are reinforced through partnerships with the African Continental Free Trade Area (AfCFTA) Secretariat, the African Association of Automotive Manufacturers (AAAM), and the National Association of Automotive Component and Allied Manufacturers (NAACAM).

Prime Minister Sam Matekane hailed the launch as a significant achievement, saying it demonstrated the private sector’s capacity to drive national economic growth.

“It is truly worthy of celebration and a great pleasure to have witnessed what started in 2023 reach fruition only two years later. This development exemplifies how the private sector can contribute significantly to the economic well-being of our country,” Mr Matekane said.

He added that the establishment of an Isuzu Motors dealership — an Original Equipment Manufacturer (OEM) — presented vast opportunities for Lesotho’s economy.

“It is my fervent hope that this is just the first step in Isuzu’s automotive journey in Lesotho, as great opportunities lie in the automotive components manufacturing sector,” he said.

Minister of Trade, Industry and Business Development, Mokhethi Shelile, said funding facilities available to Southern African countries through the Afreximbank would support the development of the automotive sector, inviting submission of bankable project proposals.

He added that ZMG Isuzu, through its Dealer Principal, was part of a committee working with the Ministry of Trade, Industry and Business Development and the United Nations Economic Commission for Africa to develop Lesotho’s Automotive Policy.

“The policy will provide direction for the development of Lesotho’s auto industry, including the formalisation of the aftermarket and the development of enabling legislation. This again illustrates the importance of roping in expertise from various industry players to create frameworks that structure the growth of the industry,” Mr Shelile said.

He urged Isuzu South Africa to consider expanding its footprint in Lesotho through further investment, and encouraged ZMG to take advantage of Lesotho’s competitive wage rates to reduce production costs for labour-intensive manufacturing such as component assembly.

“The government will not relent in its efforts to stimulate robust economic growth, nor will we waver in transforming the country from a consumer-based economy to a producer and export-driven one. We welcome thought-provoking discussions and ideas that can feed into our goal of building a robust and prosperous economy for this country. And while you are here, may you experience elevation,” Mr Shelile added.

ZMG Isuzu investor, Cassim Zakhura, expressed excitement about the investment, saying it contributes to Lesotho’s economic growth. He said their long-term strategy includes expanding operations to other districts and expressed gratitude to the LNDC for making the investment possible.

 

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