Lesotho Prime Minister Invites Nigerian Investors as Xenophobia Concerns Grow

The Prime Minister of Lesotho, Samuel Matekane, has urged Nigerian investors affected by xenophobic violence and anti-immigrant sentiment in South Africa to consider relocating their businesses to Lesotho, presenting the mountain kingdom as a safer and more welcoming destination for African entrepreneurs. The appeal comes as diplomatic efforts continue to ease tensions between Nigeria and South Africa following recent attacks on foreign nationals, including Nigerians.

Matekane said Lesotho is committed to creating an investor-friendly environment where businesses can operate without fear of xenophobic attacks. According to reports, he encouraged Nigerian entrepreneurs to take advantage of the country’s stable investment climate, strategic location and access to regional markets, stressing that African businesses should be able to thrive anywhere on the continent.

The invitation comes amid heightened concern over a wave of attacks targeting foreign-owned businesses in South Africa. In recent months, vigilante groups and anti-immigration protesters have targeted migrant-owned shops, prompting hundreds of Nigerians to seek repatriation and forcing many others to close their businesses. The violence has reignited longstanding diplomatic tensions between Africa’s two largest economies.

Earlier this week, Nigerian and South African officials met in Abuja to address the crisis. Nigeria’s Minister of State for Foreign Affairs, Sola Enikanolaiye, said South Africa had pledged to prosecute those responsible for the attacks, improve security for foreign nationals and cooperate on compensation claims for affected Nigerians. South African International Relations Minister Ronald Lamola reiterated that his government condemns xenophobia and does not support vigilante violence.

Against that backdrop, Lesotho’s outreach is being viewed as both an economic opportunity and a political statement. The country hopes to attract foreign direct investment by positioning itself as a secure destination for manufacturers, traders and entrepreneurs seeking alternatives within Southern Africa. Analysts note that Lesotho already enjoys preferential access to several international markets through regional and international trade agreements, making it attractive to export-oriented businesses.

Business experts say relocating operations would not be a simple decision for many Nigerian investors, who have built substantial commercial networks in South Africa over many years. However, they add that persistent insecurity and repeated outbreaks of anti-foreigner violence could encourage some companies to diversify their operations across the region rather than remain dependent on a single market.

The latest development highlights the broader economic impact of xenophobic violence. Beyond the humanitarian consequences, repeated attacks have disrupted livelihoods, strained diplomatic relations and raised questions about investor confidence in parts of Southern Africa. Whether Lesotho succeeds in attracting significant Nigerian investment remains to be seen, but the Prime Minister’s invitation signals the country’s ambition to position itself as a regional business hub.