By: Mpho Shelile

MASERU

To drive meaningful change in Lesotho’s tax landscape, Revenue Services Lesotho (RSL) recently recognised six innovative groups in the 2025 Hackathon Competition. This competition was designed to tap into the creativity and technical prowess of the nation’s youth, with the goal of addressing one of the most pressing challenges faced by Basotho taxpayers, the slow and often cumbersome VAT refund process.

Identifying the urgent need for innovation, RSL launched the competition in late 2024, inviting Basotho to propose technological solutions that could streamline the VAT refund process and enhance payment systems. By providing a platform for fresh ideas, the hackathon empowered participants to rethink and reimagine how a modern VAT system could not only simplify processes but also boost efficiency and transparency, ultimately benefiting taxpayers and the broader economy.

The event not only fostered a spirit of collaboration and technological advancement but also underscored RSL’s commitment to making VAT processes more accessible, user-friendly, and efficient for all. With such innovative proposals and dedicated participants, the future of Lesotho’s tax system looks brighter than ever.

As highlighted by Ms. Maneheng Mopeli, Commissioner of Communications at RSL, the manual process of VAT refunds had been notorious for its slow pace, often causing frustration among payers. “We wanted to address this issue by inviting stakeholders, especially the youth, to contribute innovative ideas and help us create a more efficient and accessible system,” she remarked in her opening speech.

Over the past few months, RSL opened up applications for the Hackathon, inviting young innovators to submit their tech-driven solutions. The response was overwhelming, with a total of 50 participants successfully making it to the competition’s final stages. These participants were tasked with developing cutting-edge technologies that would streamline the refund process, offering the potential for quicker, more efficient, and user-friendly services.

After rigorous evaluation, the competition was narrowed down to the top 7 finalists, each of whom presented their ideas to a panel of esteemed judges. The finalists were not only competing for the honour of winning but also for substantial cash prizes and valuable tech gadgets, including bags, power banks, and headsets.

The stakes were high, with four lucky teams making it to the top 4. These finalists were each awarded a prize package that included a bag, power bank, a pair of headsets, and a cash prize of 10,000.00 each. The competition then escalated, with the top 3 taking home the same valuable gifts but with an increased cash prize of 30,000.00.

The top 2 finalists were given an even larger cash reward of 40,000.00, along with the same coveted tech gifts. And, of course, the grand winners took home the ultimate prize of 50,000.00 in cash, plus the recognition of their achievement in revolutionising the refund system.

Among the winners, Katleho, the leader of the victorious team, expressed deep gratitude to the RSL for the opportunity and the recognition to his team received for their hard work. “This competition was not easy,” he said in his remarks, “but our success is a testament to the hard work and creativity of my team, and above all, the grace of God.”

Katleho also highlighted his commitment to giving back to the community, revealing that 30% of his cash prize would be donated to his church. “This victory is not just for us, but a chance to make a positive impact on those around us,” he stated, demonstrating his strong sense of social responsibility.

In his address, Commissioner for Client Services and Head of Customs, Mr. Rakokoana Makoa, expressed his appreciation to all participants for responding to RSL’s call for engagement. He began by emphasizing RSL’s commitment to a strategic initiative called Lesokoana, which is designed to invest in both people and technology. “Our goal is to create a meaningful impact on the livelihoods of the Basotho people,” he stated.

Mr. Makoa highlighted one of the major challenges RSL faces, which is processing VAT refunds, noting that the organisation must handle refunds totalling up to 100 million per month. Despite this challenge, he expressed immense pride in the potential of Lesotho, particularly the youth, and the significant contributions they can make to the country’s growth.

In conclusion, Mr. Makoa reiterated RSL’s commitment to welcoming young innovators and their fresh ideas, stating that these contributions are crucial for improving and advancing their services.

The 2025 RSL Hackathon has proven that the future of Lesotho’s tax system is in capable hands. The youth have showcased remarkable innovation and ingenuity, offering promising solutions to a long-standing challenge. With these new ideas, RSL is poised to implement more efficient and convenient processes for tax refunds, benefitting both the government and taxpayers alike.