By: Mpho Shelile
MASERU
The Revenue Services Lesotho (RSL), in collaboration with Nedbank Lesotho, hosted a prestigious Post-Budget Speech Gala Dinner. This event aimed to analyze, reflect, collaborate, and renew efforts toward a prosperous economic future for Lesotho.
Graced by esteemed guests from both the public and private sectors, the event provided a critical platform for meaningful dialogue on the national budget presented by the Honourable Minister of Finance and Development Planning, Dr Retšelisitsoe Matlanyane.
Dr Matlanyane in her remarks highlighted that a significant challenge is confronting youth unemployment. “The findings from the 2024 Labour Force Survey reveal a troubling situation that calls for our prompt intervention and action”.
“Among the 760,230 young Basotho aged 15 to 35, approximately 145,087 are currently unemployed. This figure is striking, nearly 39 percent of our youth actively looking for work are unable to secure a job. This situation represents more than just numbers; it reflects postponed aspirations, unfulfilled potential, and futures that remain uncertain.”
“However, within these challenges lie opportunities. Our formal sector currently employs only 87,849 people, while the informal sector accounts for 461,873 jobs.” Adding that this picture suggests that there is significant room for expanding job creation in formal employment spearheaded by private sector, particularly in growing sectors of the economy.
Mrs. Mathabo Mokoko, Commissioner General of RSL, emphasised the importance of public-private collaboration in navigating the economic challenges facing Lesotho. She highlighted the vital role that both government and the private sector must play in ensuring that the fiscal policies laid out in the national budget translate into tangible outcomes for the people of Lesotho.
She stressed that the Post-Budget Speech Gala Dinner is not merely a ceremonial event, but a call to action for all sectors to actively contribute towards the successful implementation of fiscal policies outlined in the national budget.
“We are here tonight not just to listen, but to actively engage, and to explore how we can jointly work toward the economic growth and transformation of Lesotho,” she said. “This gathering provides an opportunity to dissect the key fiscal policies and priorities outlined in the budget and examine their implications for our businesses, livelihoods, and the country as a whole.”
The national budget serves as the financial framework for the country, directing resources towards key areas such as economic growth, social development, and fiscal sustainability. Mokoko underscored the importance of successfully implementing the national budget, especially in the current global climate marked by uncertainty and economic volatility.
“The national budget is more than just a set of numbers; it is a strategic document that directs resources to sectors that drive growth, job creation, and poverty alleviation,” she remarked. She encouraged all stakeholders to view the budget not as a top-down policy but as a shared responsibility that requires active participation from both government and the private sector.
Mokoko reiterated RSL’s commitment to providing seamless service to the people of Lesotho, ensuring a tax-compliant environment that fosters business and economic growth. RSL aims to invest heavily in digital solutions, making compliance easier for taxpayers and improving operational efficiencies.
“Our goal is to remove bottlenecks in service delivery and to ensure that the people of Lesotho receive the services they deserve without fear or favour,” she underlined.
Mokoko also pointed out RSL’s commitment to fighting corruption, which poses a significant barrier to economic development and efficient service delivery. “We must do everything in our power to ensure that the funds we collect are used for the benefit of the people,” she said.
Mrs. Mokoko highlighted the need for stronger partnerships between the government, financial institutions like Nedbank Lesotho, and the broader business community. She highlighted that collaboration between these entities is crucial for driving economic progress, mobilising resources, and ensuring that Lesotho remains a competitive and investment-friendly country.
“We must recognise that partnerships are key to unlocking the full potential of our economy,” she stated. “It is through these partnerships that we can address the challenges of our economy, improve financial inclusion, and ensure that we create a business-friendly environment where entrepreneurship can thrive.”
Dr. Ratjomose Machema, a Budget Analyst at the National University of Lesotho (NUL), delivered a thought-provoking speech that highlighted several key issues affecting the nation’s economy. One of the most striking points he addressed was the alarming youth unemployment rate, particularly among females.
Dr. Machema emphasised that, although females demonstrate a higher willingness to learn and acquire new skills, males still dominate labor market statistics. He asserted, “There is a key structural issue that our economy needs to address.”
Dr. Machema discussed Lesotho’s position within the Southern African Development Community (SADC) countries, revealing that Lesotho ranks the lowest in terms of innovation and investment opportunities. This, he argued, is a significant barrier to the country’s economic growth and development.
To overcome this challenge, Dr. Machema urged the nation to adopt a more innovative and creative mindset. “For Lesotho to attract investors, it is about time we all start thinking outside the box,” he advised.
Dr. Machema’s call to action for policymakers, educators, and the private sector to collaborate and implement strategies that foster a more inclusive and innovative economy is a critical step toward economic rebirth. Adding that by addressing structural issues and promoting a culture of creativity and entrepreneurship, Lesotho can pave the way for a brighter and more prosperous future.