By: Mpho Shelile
MASERU
Informal trading has long been a cornerstone of Lesotho’s economy, offering a lifeline to many Basotho who struggle to find formal employment.
From fruit vendors and street food sellers to second-hand clothing traders and hair braiders, these entrepreneurs are the heartbeat of Lesotho’s urban and rural markets.
Despite their essential role in sustaining livelihoods and contributing to the local economy, informal traders continue to face a multitude of challenges that hinder their growth and threaten their survival.
One of the most pressing issues is the lack of proper infrastructure. Many traders operate in open spaces without shelter, making them vulnerable to harsh weather conditions.
Makatleho Tšosane, a fruit vendor in Maseru, shares her struggle: “When it rains, we lose everything. Our stock gets spoiled, and we have no place to store it safely. The market spaces are overcrowded and unclean. It is not easy to work like this every day.”
According to a 2023 report by the Lesotho Chamber of Commerce and Industry (LCCI), more than 60% of informal traders operate without access to secure stalls, storage, or even public sanitation facilities. This not only affects their productivity but also poses health risks for both traders and customers.
Another major challenge is limited access to financing and credit. Unlike formal businesses, informal traders often do not qualify for loans due to lack of collateral, business registration, or credit history. This hinders their ability to expand operations or recover from economic shocks.
“There is no one willing to lend us money because we are not registered, and we do not have bank accounts,” said Thabo Motšelisi, a second-hand clothing seller at Sefika. “Even if we try saving as a group, it is not enough to meet the growing demand from customers. We want to grow but cannot move forward without financial support.”
In addition to financial hurdles, lack of legal recognition and harassment remain key challenges. Many informal traders are not licensed, leading to constant conflict with law enforcement. Raids, confiscation of goods, and fines are common occurrences, which discourage traders and create an atmosphere of fear and instability.
Matumelo Lebaka, a second-hand clothing seller at Sefika, said she was moved from her selling point and lost some of her stock.
“The MCC (Maseru City Council) police is our major threat, because they want us to move from this place but we do not know where to go, for the marketplace (built by the government) is full, said Lebaka”
“MCC has not been supporting our request for the construction of market stalls. The council still uses the Market Regulations Act of 1971 which, in our view, is an old law that should no longer be applicable to today’s situation.”
Lebaka dream is to see street vendors treated fairly, “I plead with the government to renew laws and policies that apply to street vendors.”
“The constant pressure from municipal authorities to vacate our trading spots without providing alternative locations, leads us to instability and loss of clients.”