By: Puseletso Maqoaelane
Maseru – The Ministry of Trade, Industry, and Business Development hosts a pivotal public dialogue, drawing attention to the evolving business regulatory framework and emerging opportunities. The discussion, which includes a focus on Special Economic Zones, (SEZs), aims to explore their critical role in fostering economic growth.
The dialogue is a crucial platform for stakeholders from both public and private sectors to engage in meaningful discussions about the current and future landscape of business regulations and opportunities.
Attendees have the unique opportunity to hear from industry leaders, policymakers, and experts who share their insights on how regulatory frameworks have been implemented to support business growth.
Honourable Mokhethi Shelile, Minister of Trade, Industry and Business Development advocates for more of such fora to effectively foster a spirit of collaboration, dialogue, and shared responsibility for challenges facing our country.
One critical challenge is the lack of transparent, inclusive, predictable, and efficient policies and regulatory practices, which makes the investment climate unfordable.
He then proceeds to make mention of the government having made major strides to improve the business environment in terms of business registration, licensing, water and electricity connections as well as road infrastructure networks, in recent years.
Conversely, the Government has made progress in the investment Climate Reform Agenda since the launch of the Public-Private Dialogue beginning of this year.
He adds; “Diagnostic assessment of Lesotho‘s investment climate has been undertaken to identify main challenges constraining investment climate. This subsequently informed the design of an integrated response to factors constraining investment climate.”
He also says integrated response constitutes specific actions to support the growth of investments (both foreign and domestic) in the country, and is outlined in a sensible prioritization Investment Climate Action Plan (ICAP).
The ICAP is aligned with the priorities of the Second National Strategic Development Plan (NSDP II) as well as the international best practice.
ICAP focuses on seven key performance areas namely: establishment of a Framework for Investment Regulation, Promotion, And Support, Enhancement of Access to Finance for Enterprises, Improvement Of The Business Environment, Enhancement Of Land-Use Planning, Infrastructure, Trade Facilitation to Support Investment, Promoting Investment in strategic sectors: manufacturing of textiles and Apparel, Promoting Investment in strategic sector of Horticulture and Promoting Investment in strategic sector of Tourism.
“Global evidence suggests that implementing transparent, inclusive, predictable and efficient policies and regulatory practices can unlock potential for private sector development and incentivize firms to invest, compete and grow which in turn creates productive jobs.
In the context of Lesotho, ICAP is going to inform our dialogues going forward as we create an investor-friendly environment to attract investment into the country,” says Hon. Shelile.
Prime Minister Honourable Samuel Ntsokoane Matekane says the Public Private Dialogue focuses on improving investment climate, reversing the decline in investment thus reducing red tape in the entrepreneurship ecosystem, and addressing government inefficiency.
The Prime Minister says through the Public Private Dialogue, they can diagnose problems and craft policies that will improve Lesotho’s Investment Climate. Currently, the investment environment ranks 132 out of 167 countries according to LEGATUM INDEX. In contrast, Eswatini is ranked 72 and Botswana is at 60 – there is significant work that must be done at Lesotho.
Urging the Ministry of Works to ensure that Basotho are concluded in big contracts, he speaks strongly that corruption has eroded the country yet “it must be avoided at all costs for better Lesotho.”
Honourable Dr. Rets’elisitsoe Matlanyane, the Minister of Finance and Development Planning of the Kingdom of Lesotho emphasizes the critical role of women and youth in driving Lesotho‘s economic growth. She urges these groups to actively engage in business, highlighting that, “inclusive growth is key” to the development of the nation.
Dr. Matlanyane encourages the said community segments to seize emerging opportunities, adapt to the evolving regulatory framework, and innovate within the business sector, as their contributions are vital for building a resilient economy in Lesotho.