•   International Finance Corporation

    IFC Press Release No. 78/29
                                                                    1818 H Street, N.W
                                                                    Washington. D.C. 20433, U.S.A
                                                                    202-393-6360




    Tuesday, May 30, 1978

                            IFC Makes First Investment in Lesotho

         The International Finance Corporation (IFC), the World Bank affiliate that
    supports private enterprise ventures in developing countries~ is making its first
    investment in Lesotho with a $31,000 equity and $299,000 loan conunitment to
    Lesotho Quality Aggregate Industries (Pty.) Limited.
         The Company is being formed to undertake a $1,011,000 stone-crushing venture
    that will produce aggregate for use in various development projects within Lesotho.
         The project will enable Lesotho to make use of one of its few known natural
    resources, reduce its dependence on crushed stone imports by ensuring a steady
    domestic supply at reasonable cost, and provide jobs and training for Lesotho
    workers.   Project costs will be met by a Lesotho National Development Corporation



•   equity investment of $217,000 and loan of $45,000; a $62,000 equity investment by
    Fowler Construction (Pty.) Limited, which is the technical sponsor and has exten-
    sive experience in quarry and stone crushing operations; cash generation of
    $357,000, and IFC's investment.
         Although high quality dolerite rock deposits well suited to road 'and con-
    struction requirements exist throughout Lesotho, almost all aggregate has been
    imported in the past.     The Company's production will substitute for these imports
    which amount to about $500,000 yearly.    Operations are to commence at an existing
    quarry and be transferred later to a new quarry site, both in the Maseru area.
         IFC 9 s investment is a result of its special efforts to encourage enterprises
    in lesser developed countries.    The Corporation, in close cooperation with the
    Lesotho National Development Corporation, took an active role in reviewing suit-
    able quarry sites, initiating surveys, structuring the project and in financial
    and marketing planning.
         Lesotho's industrial sector is at an early stage of development aul faces
    strong competition from large, efficient companies in South Africa.            The Govern-
    ment has given high priority to Lesotho Quality Aggregate Industries, which is



•   expected to be viable, competitive and serve as an example for other potential
    domestic industries.

    (Any inquiries strictly relating to IFC's participafLon in this project should
     be directed to the IFC Information Office, 1818 a Street, N.W~, Washington, D.C.
     20433, Telephone (202) 477-5340.