By: Mpho Shelile
Hlotse – Revenue Services Lesotho (RSL), through its ongoing Mphahlolle Awareness Campaign, recently hosted its second symposium aimed at empowering Small, Medium, and Micro Enterprises (SMMEs) in Lesotho.
Held at the Mountain View Hotel in Leribe, the event served as a pivotal platform for educating local entrepreneurs on key issues surrounding tax systems, international trade agreements, and the recently introduced Lesotho Authorised Economic Operator (AEO) program.
The symposium, which was centred around the theme “Tax and Customs International Instruments,” underscored RSL’s dedication to enhancing the capacity of SMMEs to thrive in an increasingly interconnected global economy. The event offered critical insights into the opportunities available to businesses within Lesotho’s evolving tax and trade ecosystem, with a particular focus on tools and strategies that could boost both domestic and international trade.
Mrs. Mathabo Mokoko, General Commissioner of RSL, officially inaugurated the symposium with a compelling speech, emphasizing the transformative potential of international trade agreements and tax treaties. She explained that such agreements have the power to reshape the economic landscape of Lesotho, sparking growth, fostering innovation, and increasing prosperity.
“We have several agreements in place both tax treaties and trade agreements that are strategic tools for the economic advancement of our nation,” Mrs. Mokoko stated. She cited the African Continental Free Trade Area (AfCFTA) as an example of such agreements, which provide Basotho businesses with access to new markets across the continent.
Mrs. Mokoko also highlighted the symposium’s dual purpose: to educate and empower entrepreneurs while creating opportunities for networking and collaboration. “This is not just an educational platform,” she said. “It’s a space for businesses to forge partnerships, cultivate long-term collaborations, and drive sustainable economic growth.”
One of the major highlights of the event was the introduction of the Lesotho Authorised Economic Operator (AEO) program. Mr. Thapelo Moleli, Deputy Commissioner of Customs Advisory Services at RSL, explained that the AEO program is a globally recognized initiative aimed at enhancing the security of international trade and facilitating smoother cross-border transactions.
Mr. Moleli explained that AEO is not only a Lesotho-specific program but part of a larger Southern African Customs Union (SACU) initiative. He outlined how the program certifies businesses that comply with high standards of customs regulations, enabling them to benefit from expedited clearance processes at borders, reduced trade costs, and increased predictability in the movement of goods.
“AEO is about facilitating trade while ensuring that security measures are in place,” Moleli stated. “For businesses, it’s about creating a smoother and more cost-effective pathway for goods to flow across borders, whether in Lesotho or the broader SACU region.”
Mr. Moleli went on to explain that the benefits of the AEO program extend beyond just local trade; it also plays a vital role in facilitating exports, particularly for Basotho entrepreneurs looking to expand into SACU markets. “One cannot make money if they cannot export goods due to trade restrictions,” he noted. “The AEO program aims to ensure that Basotho businesses have the necessary platform to access global markets and generate revenue.”
The symposium also featured case studies of businesses that have reaped tangible benefits from participating in the AEO program. Mr. Moleli shared statistics from businesses across Africa to illustrate the program’s impact on trade and cost efficiency.
A Tanzanian transportation company reported savings of 325 million after joining the AEO program. Kenya’s Farmers Choice Limited saw a 30% reduction in costs thanks to priority clearance procedures. A beverage producer in Burundi reported annual savings of 6.1 million as a result of AEO certification.
These examples illustrated the tangible economic benefits that come with being certified under the AEO program, particularly in terms of cost reduction, increased efficiency, and enhanced competitiveness in international markets.
The symposium also included in-depth sessions on navigating tariff structures, understanding international trade agreements, and leveraging them for business growth. Experts provided insights into the various bilateral and multilateral treaties Lesotho has signed, including those with countries in Africa and beyond.
Mrs. Mokoko emphasized the importance of trade facilitation in driving economic development, citing a World Trade Organization (WTO) statistic that a 1% reduction in trade costs can lead to a 0.5% increase in GDP. She encouraged participants to view tax treaties and trade agreements not as bureaucratic hurdles, but as strategic opportunities to unlock new markets, reduce costs, and ultimately increase profitability.
“By understanding and utilizing these agreements, you have the power to transform your business operations, expand your reach, and contribute meaningfully to the economic growth of Lesotho,” Mrs. Mokoko said.
Mrs. Mokoko called on all businesses, especially SMMEs to view these initiatives as tools for economic empowerment. “As business owners, you have the opportunity to leverage these agreements to access new markets, increase innovation, and contribute to the economic prosperity of Lesotho,” she said.
The symposium concluded with a statement from Mr. Ntela Molahloe, representing the business community. Mr. Molahloe, from Maseru Toyota (also known as Maputsoe Motors), thanked RSL for its initiative in educating entrepreneurs about tax and trade matters. “We have learned so much today, and we are eager to return to our businesses and put into practice the valuable knowledge we have gained,” he said.
As RSL continues its Mphahlolle Awareness Campaign, the hope is that more SMMEs will join the conversation, actively engage with these opportunities, and become key players in reshaping Lesotho’s economic future. By aligning local businesses with international trade standards and fostering collaboration, RSL is not just providing education, it’s investing in the future of Lesotho’s economy.