By Thoboloko Ntšonyane
MASERU
The government has vowed to reaffirm its commitment to a private sector-led economy with the approval of the 2025/26 budget in parliament last week. The Minister highlighted Finance and Development Planning, Dr Retšelisitsoe Matlanyane has placed an emphasis on business development, small-scale enterprises, and farming support under the the economic growth and job creation pillar where she said M1,9 billion will be committed.
The Appropriation Bill, now signed into law, enables immediate spending to drive economic growth, with key allocations aimed at empowering the private sector participation especially for the upcoming businesses.
A portion of the budget will go towards training SMMEs where they will be equipped with essential skills.
Recognising the role of agriculture in economic sustainability, the budget also includes measures to support smallholder farmers to foster self-reliance, boost production, and ensure a thriving private sector.
With funding now secured, businesses and farmers alike anticipate meaningful interventions that will enhance capacity, create jobs, and stimulate long-term economic progress.
Dr Matlanyane pointed out that in the current financial year, the government has allocated M1.9 billion under the pillar of economic growth and job creation. This budget is distributed across various ministries and departments to support key development initiatives aimed at economic growth and food security.
The Ministry of Trade, Industry, and Business Development has been allocated M11 million to provide capacity-building support for Small, Medium, and Micro Enterprises (SMMEs). M90 million has been set aside for the construction of the Standards and Quality Assurance body, anl institution expected to enhance the competitiveness of local products in both domestic and international markets when complete.
The refurbishment of the Cooperatives College has been allocated M495,000, while M11 million has been designated for the refurbishment of Basotho Enterprises Development Corporation (BEDCO) estates across the country to improve infrastructure and support business growth.
The agricultural sector has also received an investment, with M379 million allocated to the Smallholder Agriculture Development Project (SADP) II. This funding aims to assist emerging farmers in scaling up their production to meet market demands and enhance food security. Through this move the government seeks to strengthen food security and safeguard livelihoods, ensuring that farmers can sustainably produce food despite the challenges posed by climate change.
Meanwhile, M42 million has been directed towards the Wool and Mohair Competitiveness Project (WaMCoP), an initiative designed to strengthen the wool and mohair industry by improving production and market access and to support the local wool and mohair farmers.
The Minister further stated that the government has allocated M193 million to support the Competitiveness and Financial Inclusion (CAFI) project. CAFI is charged with enhancing the business support services and financial products for Micro, Small and Medium Enterprises (MSMEs) particularly the youth and women led ones.
Prime Minister Rt Hon Samuel Matekane has urged ministers to ensure the swift implementation of these projects, stressing that unnecessary delays must be avoided.
He urged the opposition to effectively fulfil its role in holding the government accountable and ensuring that public funds are not misused. Matekane made it clear that there will be consequences for the ministers who will fail to meet their responsibilities.