Publisher’s Note

Steve Rasehloho, a History Painter and Sculptor of Note

Publisher’s Note

Lesotho Bursts into Solar Power Amid Power Outages in South Africa

This is the second installment of the annual Lesotho Insights™ – A comprehensive Overview of Business and Economy, 2021-22. This coffee table publication sets the stage for positive discourse about Lesotho by Basotho. Once again, we have set the tone and covered what we believe encapsulates the development agenda of Lesotho as articulated in the budget speech by the Honourable Minister of Finance, Honourable Thabo Sophonea. We have also attempted to articulate major developments in the socio economic landscape of Lesotho, albeit amid very tough conditions presented by the Covid-19 pandemic.
We are indeed gratified by the overwhelming support and words of encouragement that we have received since the publication of our maiden copy last year. Readers and advertisers alike, you have all affirmed our conviction that the production of a publication of this nature is long overdue. We need our own voice as a country to tell our story to the world.
Despite some seemingly insurmountable challenges that we faced, I want to believe that the production of our second edition epitomizes resilience. More than ever before, we and indeed the whole world has grown to appreciate both the superficial and the deep rooted meaning of resilience for governments, organisations and individuals alike. My best definition of resilience comes from Jean Chatzky, the financial editor of NBC’s TODAY show, who says “Resilience isn’t a single skill. It’s a variety of skills and coping mechanisms. To bounce back from bumps in the road as well as failures, you should focus on emphasizing the positive.” We have so far been resilient in producing this book two years in a row, with the dark cloud of Covid 19 and the economic downturn hanging over our heads. We have consciously decided to soldier on because our focus is on the positive. We cannot accurately predict what is before us, but what we are certain about is that this calamity is not permanent. I therefore say, lets weather the storms together as a nation, and we will eventually triumph together someday.

In this edition, we continue to look at stories, facts and figures that shape Lesotho’s economic outlook in the current financial year. We analyse the budget speech, on which economic policy is premised. We also highlight new prospects across various sectors of the economy for financial year 2021/22. Our anchor partner remains Lesotho National Development Corporation, but even more gratifying, we also showcase some of the work done by the development partners and other projects of note. On that score, we wish to thank the European Union Delegation in Lesotho, Sekhametsi Investment Consortium and the Wool and Mohair Promotion Project for pioneering this showcase in our publication.
At Lesotho Insights™, we are also not oblivious of the fact that the Covid 19 pandemic has given rise to the growth of digital media and content sharing. On that note, we have resolved to publish a website to support this book. We have also made our presence on Facebook and Twitter. For us, these are important avenues that can only support and widen the reach of our content.
I conclude my editorial note by conveying my heartfelt condolences to the all of mankind in Lesotho and the world over who have lost loved ones because of the devastating Covid 19 pandemic.

I trust that you will find this second instalment of Lesotho Insights™ educational and fulfilling, and that you will be proud of it as the Mountain Kingdom’s ambassadorial publication to the world. Lets support it and share it with pride.

Manyathela Kheleli
Publishing Editor

Foreword by the Minister of Finance

It is indeed an honour to be penning this foreword and I am once more gratified to be a part of Lesotho Insights, which made its debut in the 2019/20 financial year. The publication has truly inspired me, first for its creativity and the bravery to soldier on even in these trying times when the Covid-19 pandemic has battered many players in the different sectors of our economy to their knees. It has been a humbling experience to interact with the publishers of this premium coffee table publication and their show of unparalleled patriotism. I also extend my appreciation to all those who have supported it and I encourage you all to join in and be proud of what this book has achieved as an ambassadorial publication that showcases Lesotho to the world.
The first edition of Lesotho Insights was published under very difficult circumstances as a maiden issue, unfortunately the second edition is no different as it comes at a difficult time as the Covid-19 pandemic continues to wreak havoc in our economy and the world. In fact, a recent report published by the UNDP states that; “Global human development – which can be measured as a combination of the world’s education, health and living standards – could decline this year… The decline in the index, reflecting the narrowing of capabilities, would be equivalent to erasing all the progress in human development of the past six years”. (Assessment of the Socio-Economic Impact of COVID-19 On the Kingdom of Lesotho, UNDP 2020). This goes on to show how devastating the impact of the pandemic will be and how far back it is going to take us in the foreseeable future.
In the same vein, I also had my own challenges when I read my first budget speech in Parliament on 17th February, 2021. It has been the most challenging budget speech to put together given the health crisis and economic challenges that Lesotho and the world is confronted with as a consequence of Covid-19. I fully subscribe to the description that the UN Secretary General, Antonio Guterres, made at the World Health Assembly, when he said, Covid 19 must be a wakeup call to the world which has exposed the fragility of the world, which is not limited to our health systems, but affect all areas of our world and our institutions. Mr. Gutteres also challenged leaders of the world by warning them that “either we get through this pandemic together, or we fail, either we stand together, or we fall apart.” I therefore extend this challenge to all of us to call for unity and solidarity as Basotho to stand together to navigate our way out of this catastrophe in solidarity as a nation that the Great King Moshoeshoe I would have wished us to be.
The theme of my speech was “Navigating the new norm towards transformation and economic recovery.” This theme implies that the budget that I have tabled in Parliament was largely geared towards picking up the pieces to rebuild our battered economy. It also means that our fiscal policy had to adopt radical austerity measures to weather the storms of Covid-19.
I presented a budget that proposed total expenditure at M23,8 billion, of which recurrent budget is M18 billion, and capital budget is 5,8 billion. These estimates reflect a decrease of 1% in recurrent expenditure, whilst capital expenditure has increased by 2%. This budget will be financed through revenues generated from tax collections, Southern African Customs Union (SACU) receipts, grants and other forms of non-tax revenue.
Top on our list of priorities is obviously to ensure that we save the lives of our people. This is because as Government, we fully appreciate that our success and recovery are dependent on the extent to which we resolve this debilitating health crisis. In tandem with the health crisis, we must also be intentional about reviving the economy. As we all know, we were already grappling with the challenge of how to solve our deep-seated structural problems to turn the fortunes of our country round, and Covid-19 has dealt us another blow that requires us to be even more resilient in order to survive and restore the livelihoods of Basotho.
I call on our development partners, private sector and indeed the nation as a whole to show up and together let us contribute meaningfully to first save our people from the clear and present danger presented by the Covid-19 pandemic, and save the nation from poverty.
As part of the strategy to improve our ailing economy, the Government intends to continue the trajectory towards promoting the commercialization and diversification of agricultural production to achieve food security and also boost revenues for small scale farmers, who must be supported to produce at even larger scale.
With the African Continental Free Trade Area (aFCFTA) now ratified by 36 African countries including Lesotho, the treaty came into force from 1st January, 2021. According to the World Bank, the AfCFTA presents a market of 1.3 billion people across the continent with a combined Gross Domestic Product (GDP) of $3.4 trillion. This treaty therefore presents an opportunity for Lesotho to claim a stake in this pie created for the continent, and it is incumbent upon Basotho to tap into this facility to bring foreign currency into the country.
In this budget, a provision has also been made to cater for the preparations towards the upcoming general national elections in 2022. The date for elections will be announced by His Majesty, King Letsie III in due course. The elections are fundamental and our success as a country in all facets is hinged very much on how we value and embrace democracy.
I take this opportunity to convey my gratitude to my predecessor, The Right Honourable, The Prime Minister, Dr. Moeketsi Majoro who was the Minister of Finance for his unwavering support and guidance in the preparation of this budget. I also thank the Cabinet Budget Committee and the development partners for their technical and financial support in the preparation of the Budget Speech.
Molimo a boloke Lesotho le Basotho.

Honourable Thabo Sophonea, MP
Minister of Finance

002
SHORT HISTORY OF LESOTHO

The Kingdom of Lesotho, formerly the Basutoland, was founded by Moshoeshoe I during the time of upheaval and nation-building known as the Lifaqane, which occurred during the early part of the 1800s in the Southern African region. Moshoeshoe brought together different clans and peoples, and formed alliances with other great chiefs to form the Basotho nation. The country fell under the protection of England (Now Great Britain) in 1868, from which it gained Independence on 04 October, 1966. Lesotho remains the only fully-fledged constitutional monarchy of the only three remaining on the African continent, the others being Morocco and eSwatini.

With a population of just above 2,000,000 people and covering an area of about 30,355 square kilometres, Lesotho is a mountainous country with its lowest elevation at 1400 metres above sea level and the highest peak, Thabana-Ntlenyana, at 3482 metres above sea level.

GEOGRAPHIC INFORMATION
With the total area covering 30,355 square kilometers, Lesotho lies in the Southern tip of the African Continent within GPS coordinates 29◦30′S 28◦30′E. It is completely surrounded by its only neighbour, South Africa, making it one of the only three countries of the world that are enclaves, the others being San Marino and the Vatican in Italy.

Two-thirds of Lesotho’s terrain is mountainous. The majestic mountains of Lesotho have given credence to the popularity of Lesotho as the ‘Kingdom in the sky’ or the ‘Switzerland of Africa’. The topography of the country is divided into four distinct geographical regions with ascending latitude. The lowlands are in the South-western parts of the country along the Caledon River at the elevation between 1,400 and 1,800 meters above sea level. The foothills are in central Lesotho forming the border between lowlands and highlands, predominantly in the East with altitudes between 1,800 and 2,200 meters above sea level. There is also the Senqu river valley extending from Mohale’sHoek and Quthing in the South to Mokhotlong in the North East with elevation ranging from 1,400m to 1,800m. The Eastern and South Eastern parts of the country are mainly the highlands forming the Drakensberg escarpment with altitudes ranging from 1,400 to 3,482 above sea level. The highlands of Lesotho are home to Thabana Ntlenyana. Sitting at 3,482m, it is the highest mountain in Southern Africa. Vast wetlands in the Highlands of Lesotho are sources to many rivers in the region, including Senqu/Orange river, which is one of the longest rivers in Africa at the length of 2,200 kilometers. Senqu forms many boundaries in the region and empties into the Atlantic Ocean in Namibia.
The lowest elevation of Lesotho is at the confluence of Senqu and Makhaleng River at 1,400 meters, making Lesotho to be the country with the highest lowest point in the world. Lesotho is also the only country in the world whose entire altitude is above 1,000 meters above sea level and indeed the country that is closest to heaven.

Because of its altitude, temperatures in Lesotho are mainly cool and most of the rain falls in summer. Temperatures in summer range from mid 20s to early 30s and sub zero temperatures can be experienced in winter with snow in the highland areas of the Drakensberg. In fact, Lesotho is the coldest country on the African continent.

Largely because of its altitude, Lesotho has a temperate climate with hot summers and cold winters. The lowlands often reach 30 °C (86 °F) in the summer, whilst winter temperatures can go down to −7 °C (19.4 °F) and the highlands to −20 °C (−4.0 °F) at times.
Annual precipitation varies from around 600 millimetres (23.6 in) in the lowland valleys to around 1,200 millimetres (47.2 in) in areas of the northern and eastern escarpment. Most of the rain falls in summer, between the months of October and April. Winters—between May and September are usually very dry. Snowfall is however common in winter and the higher peaks can experience occasional snowfall year-round. The annual variance in rainfall is very erratic, leading to periodic droughts in the dry season (May to September) and flooding, which can be severe in the rainy season (October–April).
POLITICAL HISTORY OF LESOTHO
Pre Colonial History
The rise of Basotho as a nation can be traced back to the 19th century during the Lifaqane or Mfecane wars triggered by rise of the Zulu empire under King Shaka. The nation was built by its founding father, Moshoeshoe I. Born in 1786 at Menkhoaneng, Moshoeshoe, (born Lepoqo) was the eldest son of Mokhachane, a minor chief of the Mokoteli branch of the Bakuena clan. Right from his early age, he was endowed with leadership qualities and also had ambition to become a great chief. During his reign, it is believed that his tactful diplomacy and belief in the co-existence with other clans made him the best statesman of his time.
In 1824, he led his people on the migration from Menkhoaneng to Thaba-Bosiu which became a mountain fortress that defended his nation from the Lifaqane wars. At Thaba-Bosiu, Moshoeshoe formed the Basotho nation with splinter groups and remnants of other tribes who sought refuge with his people. Chief among these included the Baphuthi of Moorosi, Makhoakhoa of Matela, the Batlokoa of Sekonyela and Bataung of Moletsane. These clans and other Nguni speaking tribes form the Basotho Nation that we know today.

The arrival of white settlers in the Cape, mainly the British and the Boers and their occupation of the African hinterland gave rise to many wars between these settlers and other indigenous people including Basotho. In 1833, King Moshoeshoe I welcomed the missionaries led by Eugene Casalis, who brought Christianity to his people and also served as advisors and mediators during his reign. Lesotho was eventually proclaimed a British protectorate on 15th April, 1868 at the request of King Moshoeshoe I to Queen Elizabeth. The British named the territory Basutoland. King Moshoeshoe I died on 11th March,1870 and was succeeded by his eldest son, Paramount Chief Letsie I. He left an indelible legacy as a warrior and a great statesman who built the Basotho nation we know today.

After the Gun War in 1880 between the Cape Colonial Government and Basotho chiefs who defied the Cape Colony’s disarmament policies, Basutoland was ruled directly from London through a Resident Commissioner posted in Maseru.

Colonial History

From the 1860s, Basutoland became one of the industrious farming communities in Southern Africa providing food supplies to the mining town of Kimberly and Johannesburg. Basutoland was so prosperous that it was able to present 24 Spitfire fighter aircrafts to Britain during the World War II in 1939 during the reign of Chief Seeiso Griffith. The territory also became a hub for migrant labour to the mines, which still holds a significant share of the national economy even today. However, the colonial policies were not conducive for economic growth. Basotho did not like these policies and attempts to campaign for legislative policies started as early as 1907 with the Basutoland Progressive Association. In the years that followed, Basotho became more politicized, leading to the proclamation of Independence on 4th October 1966.
THE HEAD OF STATE – KING LETSIE III

His Majesty King Letsie III is the Head of State of the Kingdom of Lesotho. He was born Prince David Mohato Bereng Seeiso on 17 July 1963. As the first son of King Moshoeshoe II and Queen ’Mamohato Bereng Seeiso, he ascended to the throne in 1996 after the untimely death of his father.

From 1968-1972, Prince Mohato undertook the first part of his primary education at Iketsetseng Private School, Maseru, where he completed Standard Five. The following year, he went abroad to study at Gilling Castle in the United Kingdom, a Roman Catholic school run by the order of St. Benedictine in Yorkshire, where he finished his primary education in 1976. Proceeding in 1977 to his father’s alma mater, Ampleforth College, the young prince completed his secondary and high school education in 1980.

From 1980 to 1984 Prince Mohato pursued his university education at the National University of Lesotho where he graduated with a Bachelor of Arts Degree in Law.

Between 1984 and 1986, Prince Mohato completed a Diploma in English Legal Studies at the University of Bristol in the United Kingdom. He later spent a year at the University of Cambridge where he read Development Studies, completing in 1989. At the same time, he enrolled with Wye College of the University of London where he studied Agricultural Economics.

Prince Mohato was installed as the Principal Chief of Matsieng (the Lesotho Royal Village) on December 16, 1989. He was then abruptly sworn in a King on November 12, 1990 when the ruling Military Council forced his father, King Moshoeshoe II into exile. It was at this point that he was named King Letsie III after King Letsie I, the eldest son of King Moshoeshoe I, the founder of the Basotho nation. King Letsie III abdicated the throne on January 25, 1995, the day on which His Majesty King Moshoeshoe II was reinstated.

Following the tragic death of his father, King Moshoeshoe II, on January 15, 1996, King Letsie III was reinstalled as King and Head of State on February 7, 1996. His coronation took place on October 31, 1997, in Maseru.

On 18 February 2000, King Letsie III married Miss Karabo Motšoeneng who became known thereafter as Queen ’Masenate Mohato Seeiso. Their Majesties have been blessed with two daughters and a son: Her Royal Highness Princess Senate, born on October 7th, 2001, Her Royal Highness Princess ’Maseeiso born on November 20th, 2004, and His Royal Highness, Crown Prince Lerotholi born on April, 18th, 2007.

King Letsie III has a keen love/passion for agriculture. He spends most of his leisure time visiting his family’s cattle posts deep in the mountains. He devotes himself to arable farming and animal breeding, and enjoys country life.

His Majesty’s favourite sporting activities include horse riding, squash, tennis and rugby. He enjoys music, especially classical and traditional music.

THE ROYAL LINEAGE

Moshoeshoe I 1824 – 1870
Letsie I 1870 – 1891
Lerotholi I 1891 – 1905
Letsie II 1905 – 1913
Griffith Lerotholi 1913 – 1939
Seeiso Griffith 1939 – 1940
’Mantšebo Seeiso 1940 – 1960
Moshoeshoe II 1960 – 1996*
Letsie III 1996 – to date

Her Majesty Queen ‘Masenate Mohato Seeiso

Born Anna Karabo Motšoeneng to Mr. Thekiso and Mrs. ‘Makarabo Motšoeneng, Her Majesty the Queen was born on 2nd June, 1976 at Maluti Adventist Hospital in Mapoteng. She is the eldest daughter in a family of five children.
In 1990 Queen ‘Masenate enrolled at the Machabeng International College in Maseru and studied there until 1996, completing an International General Certificate for Secondary Education followed by an International Baccalaureate Diploma. During her studies at Machabeng, she was selected to serve as boarding prefect for the girls and also played for the school netball team. The then Miss Karabo Motšoeneng was also awarded a bronze medal in the Prince Mohato Awards, an exiting self-development programme for young people aged 14 to 25, equipping them with life skills to make a difference to themselves, their community and the world.
It was in 1996, her final year at Machabeng when she caught the eye of the Crown Prince, Mohato Bereng Seeiso. Her Majesty went on to continue her studies at the National University of Lesotho (NUL), where she enrolled for a Bachelor of Science Degree with the intenstion to pursue a career in pharmacy. Midway through her studies, Her Majesty put on hold further studies following the announcement of her engagement to His Majesty King Letsie III in October 1999. They were joined in holy matrimony on February 18th, 2000, at a glittering ceremony attended by scores of dignitaries including Prince Charles of the British Royal Family.
Queen ‘Masenate Mohato Seeiso is the first ordinary citizen in modern history to marry into the royal family. As queen consort of the Kingdom of Lesotho, Her Majesty constitutionally shares His Majesty’s social rank and status, where she performs the role of Head of State when the King is not in the country.
The royal family is blessed with three children, two daughters and a son, Her Royal highness, Princess Senate Mohato Bereng Seeiso, born on 7th October 2001, Her Royal Highness Princess ‘Maseeiso on November 20th, 2004, and His Royal Highness Prince Lerotholi on April, 18th, 2007.
Her Majesty has been highly influenced by the Queen Mother, Queen ‘Mamohato, Bereng Seeiso in her royal duties and charitable work. The Queen and the Queen Mother ‘Mamohato grew close and she found it difficult when Queen ‘Mamohato died in 2003.
Juggling between her Royal duties, motherhood and studies, Her Majesty eventually graduated from Columbia University in New York, United states with a Bachelor’s Degree in Economics in May 2011.
The queen is exceptionally fond of assisting disabled and disadvantaged children and communities. She is the patron of several organisations and charities including the Lesotho Red Cross and Hlokomela Banana. In 2006, she resuscitated the Queen’s National Trust Fund, founded by the Queen Mother, Queen ‘Mamohato in the 80s. Her Majesty fundraises for most of her charity work and her fundraising activities include participation in the annual Moshoeshoe Walk celebrating the historic 84 kilometer pilgrimage, where Basotho, led by the Great King Moshoeshoe left Menkhoaneng to Thaba Bosiu, where the Basotho nation was founded and fortified.
In her spare time, Her Majesty loves baking and is also a gym enthusiast.

Modern Political History
Chief Sekhonyana ‘Maseribane of Basutoland National Party is the first Prime Minister of Lesotho though he served for only two months in favour of his leader, Chief Leabua Jonathan, who ruled from 1965 to 1970. During the 1970 election, Jonathan lost elections but refused to surrender power to the Basutoland Congress Party, which had won 36 seats against Jonathan’s BNP which only garnered 23 seats in Parliament. Jonathan declared a state of emergency and suspended the constitution to rule Lesotho by decree from 1970 to 1986 when he was eventually overthrown by a military junta led by Major General Justin Metsing Lekhanya.

The Military government of Lekhanya signed the Lesotho Highlands Water Project Treaty with South Africa which paved way for the construction of Katse and Mohale Dams which supply water to South Africa. Major General Lekhanya’s government also replaced the national flag formerly used by the BNP government and imposed order No.4, which banned political activities in Lesotho. Tensions also rose between the Military rule under Major General Lekhanya and the palace that led to the King to be sent on exile to Britain, leaving his son, then Prince Mohato Bereng Seeiso to ascend the Throne in 1990. Lekhanya was forced to resign in 1991 by Colonel Elias Phisoane Ramaema in another bloodless military coup.

Committed to returning the country to civilian rule, it is Ramaema’s government that repealed Order No.4 and created the Constitutional Reform commission led Lesotho to the general elections that resulted in a landslide victory by Basutoland Congress Party (BCP) in 1993.

The BCP government, led by Prime Minister Ntsu Mokhehle went through tumultuous times leading to Prime Minister Mokhehle resigning from BCP to form the Lesotho Congress for Democracy that took over government in June 1997. In 1998, the country held elections which were won by LCD, now led by Pakalitha Bethuel Mosisili, a protégé of Ntsu Mokhehle. Mosisili’s reign as the Prime Minister of Lesotho survived for about 14 years until he was defeated by a coalition of LCD, BNP and ABC in 2012, which gave Thomas Motsoahae Thabane, the leader of All Basotho Convention, his first taste at the helm as Prime Minister.
The 2012 elections heralded a new era in the politics of Lesotho that continues to be predominantly characterised by coalition governments. The politics of coalitions are a result of the Mixed Member Proportional system, where 80 members of parliament are elected in first-past-the-post constituency elections, and 40 are appointed to the National Assembly by a compensatory model of proportional representation. Political party members who get into parliament through proportional representation have now become kingmakers in the formation of coalition governments. This trajectory follows from the waning domination of major political parties as they continue to disintegrate into splinter parties. The current political landscape indicates that coalition governments will continue to dominate the formation of governments in Lesotho to the foreseeable future.
On the flipside, the politics of coalitions have also been confronted with disagreements that have rendered government unstable. This instability drove Lesotho into holding two elections in the space of three years (2012, 2015). The last elections were held in June 2017, which were won by a coalition of All Basotho convention (ABC), Basotho National Party (BNP), Alliance of Democrats (AD) and Reformed Congress of Lesotho (RCL). The coalition elected Thomas Motsoahae Thabane as the Prime Minister of Lesotho until his retirement on 22nd May 2020. The balance of power in parliament shifted the formation of the coalition government, which saw the Alliance of Democrats being withdrawn in favour of Democratic Congress. These changes gave rise to the swearing in of former Minister of Finance, Dr. Moeketsi Majoro as the new Prime Minister of Lesotho and Honourable Mathibeli Mokhothu as the Deputy Prime Minister. It is hoped that this new coalition government will eventually lead the country to fresh elections scheduled for October, 2022.
HEADS OF GOVERNMENT SINCE INDEPENDENCE
Sekhonyana ‘Maseribane 1965
Chief Leabua Jonathan 1986-1986
Major General MetsingLekhanya 1986-1991
Major General PhisoanaRamaema 1991-1993
Dr. NtsuMokhehle 1993-1998
Dr. PakalithaMosisili 1998-2012
Dr. Motsoahae Thomas Thabane 2012-2015
Dr. PakalithaMosisili 2015-2017
Dr. Motsoahae Thomas Thabane 2017 to May 2020
Dr. Moeketsi Majoro May 2020 to date

SYSTEM OF GOVERNMENT (ARMS OF STATE)

PARLIAMENT

Lesotho is a Constitutional Monarch State with a bi-cameral Parliament composed of the Senate and National Assembly. The Upper House or Senate is composed of 33 members, 22 of them being Principal and Ward Chiefs representing the College of Chiefs, with 11 other members of the public appointed by the King on the recommendation of the Prime Minister. The Lower House consists of 120 seats, 80 of them elected through the first-past-the-post (FPTP) ballot and 40 allocated through proportional representation. This system, which Lesotho first used in 2002, is called a Mixed Member Proportional system. The Prime Minister, who heads the government, is chosen from the Lower House or National Assembly.

Lesotho also has a Local Government structure throughout the ten districts of the country divided into wards of approximately the same population, though their geographical area may differ immensely. The Local Government Councils are a mixture of elected members of the public and area Chiefs representing the traditional leadership structures.

JUDICIARY

The Justice system in Lesotho is mixed in that both the Roman-Dutch Law (combined with some English Common law) as well as Sesotho Customary Law (sometimes referred to as the Laws of Lerotholi) are afforded recognition in the Constitution. The High Court of Lesotho is headed by the Chief Justice who is appointed by the King on the advice of the Judicial Services Commission. Above the High Court is the Court of Appeal which sits periodically to hear appeals against decisions and verdicts passed by the High Court. Below the High Court, which also has other specialised wings (such as the Commercial Court, Labour Court, Land Court, etc.), are the Magistrates Courts, Regional Courts and Local Courts. However many of the disputes at the village level are still settled at the Chief’s kraal by the Chief assisted by village elders.

THE EXECUTIVE
Section 87 of the Constitution of Lesotho provides for the King to appoint a Prime Minister in accordance with the advice of the Council of State. The Prime Minister is a Member of Parliament who commands majority of the Members of the National Assembly. Once appointed, the Prime Minister in turn advises the King to appoint ministers from among the Members of the National Assembly and Senate, one of whom shall hold the office of the Deputy Prime Minister. The Cabinet forms the Executive of Government and is responsible for government policy and affairs of the state. Cabinet is collectively accountable to Parliament. The current Cabinet of His Majesty’s Government is made up of 28 Ministers and 10 Deputy Ministers.

THE NATIONAL FLAG

The colours of Lesotho national flag are: Blue, White, Green with a Black Basotho Hat on the White portion in the middle.

Blue represents the sky where the rain comes from, and white symbolises the peace that Basotho are renowned for. Green represents the land and its fertility and the Black hat is the iconic symbol representing the Basotho people.

THE COAT OF ARMS
The Lesotho coat of arms features a Basotho shield emblazoned with a crocodile which is the clan totem of the royal family. Behind the shield are two crossed weapons, the spear and the knobkierie, which symbolize protection. The left and right are supported by the famous Basotho ponies which are a symbol of wealth and contentment in Basotho culture. The foreground is adorned with the national motto: Khotso,Pula, Nala, which means Peace, Rain, Prosperity. The coat of Arms was adopted on 4th October 1968.

NATIONAL MOTTO

Khotso, Pula, Nala! is the national motto, which translates to Peace, Rain, Prosperity. The Basotho nation was founded during great wars and conflicts. For the nation to prosper, peace was essential. It is the belief of Basotho that if peace reigns, then it will rain. Good rains mean a good harvest as well as abundant grass in the pastures, ensuring that people and animals will be fed and enjoy prosperity.

NATIONAL ANTHEM

The melody and the lyrics of the national anthem, “Lesōthō Fatše La Bo Ntat’a Rōna” come from European sources. The melody was from a Swiss songbook from around 1823 composed by Ferdinand-Samuel Laur. Despite being from a Swiss songbook, the musical style is similar to that of anthems of other nations in the area in the “Eastern folk” style, perhaps indicating the melody was “Africanized” sometime after it was first introduced to the country. The lyrics were by a French missionary, François Coillard, a protégé of Eugene Casalis. Coillard grew up near the French-Swiss border, close to the area where Laur’s songbook was released. It is believed that he may have known of the melody from there. The anthem first appeared in a collection of songs for high schools in 1869.
The anthem originally had five verses, but by the 20th century, only the first and last verses were used. Current lyrics were refined by a renowned Mosotho composer, Joshua Pulumo Mohapeloa and the national anthem as we know it today was eventually adopted in 1967 by a royal decree, which was backdated to Independence Day, October 4, 1966.
The anthem
Lesotho fatše la bo-ntat’a rona,
Har’a mafatše le letlekelona,
Ke moo re hlahileng,
Ke moo re holileng,
Rea le rata.

Molimo ak’u boloke Lesotho,
U felise lintoa le matšoenyeho.
Oho, fatše lena,
La bo-ntat’a rona,
Le be le khotso.

LAWedited
Recent Economic Developments and Outlook
The past year (2020/21) was particularly an economically challenging year, both domestically and globally. The challenges were brought by the coronavirus (COVID-19) pandemic and subsequent containment measures. The domestic economy, already performing below potential in recent years, was severely affected in the wake of renewed challenges with the preliminary estimates of GDP by the Bureau of Statistics (BoS) estimating about 11 per cent overall contraction for the 2020 calendar year. The estimate would signify the largest recession in history that Lesotho has ever experienced. The sharp decline reflects combined effects of a slowdown in global economic activity and the suspension of activities during the national lockdown across main industries such as construction, manufacturing, mining and the service sector.
To highlight the importance of these sectors to the economy, figure 1 shows their sectoral contribution to GDP during the period 2007-2020. The Construction industry’s contribution to GDP averaged 6.0 per cent while mining and quarrying averaged about 4.0 per cent over 2007-2019. Manufacturing contributed about 13.0 per cent to GDP in 2019 from an average of 15.0 per cent over the period 2007-2009. Manufacturing’s contribution to GDP has been on a downward trend owing to strong competition for textiles products in the US market. With the African Growth Opportunity Act (AGOA) due to expire in 2025, a concerted effort should be directed towards product diversification and increasing value addition in the sector as per the National AGOA Response Strategy. The service sector is the largest contributor to GDP and has been the anchor of growth contributing about 67.0 per cent of GDP during to period 2007-2019. Notwithstanding the recent challenges facing the service sector that are exacerbated by the pandemic, it remains the highest source of hope with potential to be the engine for growth and a source of employment in the medium-term.

Source: Bureau of Statistics, +estimates
The mix of both COVID-19 induced supply and demand shocks negatively affected export-oriented industries, particularly mining and textiles manufacturing. Construction activities suffered delays and postponement of new projects, while non-essential service industries experienced muted economic activity due to business closures and movement restrictions. These developments had more negative implications for the labour market. While some companies adopted remote working strategies during the lockdown period, others had to either shut down or scale down operations, thus laying off workers. The Government intervened in the textiles manufacturing industry with payment reliefs amounting to over 100 million maloti for about 47, 032 industrial workers to protect their jobs and livelihoods.
The annual inflation rate averaged 5.4 per cent in 2020/21 from 5.0 per cent recorded in the previous year. The acceleration in the inflation rate was mainly attributable to food prices, which averaged 12.4 per cent in 2020/21. Prices of food accelerated from 5.2 per cent in March 2020 to 14.3 in March 2021. The acceleration in food prices was due to COVID-19-induced shocks to the food supply chain that increased production and processing costs. However, non-food inflation decelerated to 1.4 per cent in 2020/21 from 3.9 in the previous year. The deceleration in non-food prices was due to negative domestic demand shock, which implied lower demand for most services during the lockdown period.

Source: Bureau of Statistics
The financial system withstood adverse impact stemming from the domestic and global economic slowdown, while supporting the revival of the economy. The Central Bank initiated a series of monetary easing measures, including a reduction of the policy rate from 6.5 per cent in September 2019 ending the 2020/21 year at 3.5 per cent, all in an attempt to reduce borrowing costs in the wake of an unprecedented economic fallout caused by the pandemic. The effects of the pandemic also prompted Lesotho National Development Corporation (LNDC) to introduce COVID-19 Response Partial Credit Guarantee (PCG) Scheme to all enterprises operating in all sectors of the economy. These efforts were introduced alongside debt moratoria for business and individuals most affected by the pandemic. In response to these measures, credit extension to the private sector showed some improvement negating the slowdown seen at the start of the pandemic.
The external sector position, which was severely affected by the pandemic in the initial stages, rebounded relatively quickly with an improvement in the current account, higher capital account inflows and a reasonable level of reserves ending 2020 at 3.9 months of import cover. Meanwhile, the fiscal sector registered an acceptable 3.0 per cent deficit despite the inevitable fall in domestic tax revenues that were cushioned mainly by the large SACU receipts. However, it is imperative to highlight that the lower than anticipated fiscal deficit during a pandemic does not necessarily reflect effective expenditure management efforts that remain critical. This is rather a result of reallocation of funds from capital budget to fight the health crisis and slow implementation of fiscal relief measures announced by the government.
The total public debt stock increased from 49.9 per cent of GDP in 2019 to an estimated 69.6 per cent of GDP in 2020 given the limited fiscal space in the wake of a recession. The accumulation of debt was observed from both the multilateral creditors to build external buffers, and domestic creditors to finance fiscal operations. A large proportion of the debt is external, which accounts for about 76.7 per cent of the total debt while domestic debt accounts for 16.3 per cent. However, 77.8 per cent of the external debt is concessional; therefore, this does not pose any immediate debt sustainability risks. According to the 2020 IMF Country Report No. 20/228, Lesotho continues to be assessed at moderate risk of debt distress. This means that none of the debt burden indicators breach their respective thresholds under the baseline scenario, but at least one indicator breaches its threshold under the stress test.
Outlook/Prospects and Growth Drivers
Economic growth is expected to rebound in 2021/22 as evidenced by fast recovery in line with the gradual and partial relaxation of lockdown measures. The December 2020 Lesotho Economic Outlook (LEO) projected that the economy will recover by 4.6 per cent in 2021 as the pace of economic activity gains momentum in key sectors. An additional boost is expected to come from the ongoing vaccine rollout that is anticipated to improve both consumer and business confidence. Nonetheless, the pace and magnitude of the recovery is largely dependent on the effectiveness of the vaccine rollout and the performance of the South African economy.
The rebound is also expected to be supported by pro-growth policies of the government and policies aimed at expanding domestic production capacity to ease pressure on the external sector of the economy, including anticipated plans to increase agricultural production, as well as the commencement of operations at the Fresh Produce Market Centre at Ha-Tikoe Industrial Estate in May 2021. The pandemic created a window of opportunity for the Government to introduce pro-growth policies with concerted efforts towards increasing domestic productive capacity.
Growth Drivers
In the medium-term, growth is expected to be driven by construction activities, diamond mining and textile manufacturing. The construction sub-sector is set to be boosted by big projects, dominated by the Lesotho Highlands Water Project (LHWP) Phase II, which is expected to move to advanced stages in 2021/22. Other projects that are anticipated to give impetus to the construction sub-sector are the Lesotho Lowlands Water Project Phase II and government roads projects. The mining and textile industries are expected to be boosted by the recovery in global demand and prices, thus increasing export earnings.

Source: December 2020 Lesotho Economic Outlook, *projections

Following the inevitable fall in SACU revenues for 2021/22, performance of the fiscal sector is projected to worsen in 2021/22, undermining the expected recovery in economic activity. The medium-term fiscal strategy was expected to highlight measures to achieve a sustainable fiscal consolidation path through rationalising recurrent expenditure, improving the efficiency of capital expenditure and revenue mobilization avenues. Such reforms would go a long way in supporting economic recovery.
The government’s drive to encourage and support domestic production in sectors like agriculture is a welcomed move; and will play a crucial role beyond the current fiscal year. To derive intended benefits fully, it will be crucial to maintain high quality standards of domestically produced goods and ensuring availability at reasonable prices.

2021/22 Budget Speech and the National Strategic Development Plan II
The Minister of Finance, Honourable Thabo Sophonea delivered his maiden budget speech for the year 2021/22 on 17 February 2021; themed “Navigating the New Norm towards Transformation and Economic Recovery”. The budget was prepared amidst an environment of increasing expenditure and declining revenue. This has led to a projected fiscal deficit of 13.1 per cent of GDP for 2021/22 from 3.0 per cent in 2020/21. At this level, the deficit is bound to put pressure on international reserves that are necessary to preserve the exchange rate peg. The fiscal imbalances also imply increasing debt levels that could pose sustainability risks if left unchecked, though currently remaining at a moderate level. Therefore, efficient and effective revenue mobilization and expenditure management remain imperative.
A post-COVID-19 recovery plan was anticipated to be announced with the presentation of the 2021/22 budget, but was reported to be under preparation at the time of the budget speech. Nonetheless, the government aims to achieve sustainable growth through sector led employment creation and by empowering indigenous Basotho entrepreneurs and continuous improvement of the investment climate. The government further intends to review and amend a number of policies and laws that will facilitate the development of the private sector. On removing the barriers to doing business, two high-level Public-Private Dialogues took place in April 2021, where it was resolved to remove administrative bottlenecks currently holding back projects that have already secured funding. These are commendable interventions as boosting domestic production will not only create jobs, but also ease pressure on the external sector of the economy in a sustained basis.

Table 1. NSDP II Vs 2021/22 Budget
NSDP II 2018/19- 2022/23 Pillars 2021/22 Budget Recovery Pillars
1) Promoting inclusive and Sustainable Economic Growth and Private Sector-led job creation. 1) Dealing effectively and decisively with COVID-19 to limit the rate of infections and deaths, in order to protect and preserve the country’s human capital base.
2) Strengthening human capital (through developing human capabilities in Health, Education, Nutrition and Social protection). 2) The need to secure macroeconomic stability to support sustainable and inclusive growth.
3) Building enabling Infrastructure. 3) A sound but agile economic policy framework that is forward looking, allocates most of the scarce resources towards investment and capital formation that has high rates of return.
4) Strengthening National Governance and Accountability systems.

The 2021/22 Budget Speech is anchored on the NDSP II inasmuch as the Minister of Finance in the budget speech tabled the economic recovery pillars and policy priorities. Table 1 above shows the pillars of the NDSP II vis-a-vis the pillars of the economic recovery presented in the budget speech. To support the current budget, the Minister of Finance tabled new policy proposals (see table 2 below). The proposed revenue and collection efficiency measures would raise about M812.1 million. This would provide the much-needed reprieve to the fiscus. However, the effectiveness of the proposed measures to curb waste and control expenditure is doubtful. The budget does not provide projected savings from such interventions.
The Budget also pledges to focus efforts and investments in the key sectors as indicated in the NSDP II. The current budget will go a long way in supporting the NSDP II objectives; but only to the extent that the budget and policies therein are both sufficiently and effectively implemented.
Table 2. New Policy Proposals for 2021/22 Budget
Revenue and collection efficiency measures Expenditure policy measures
• Increased VAT rate on electricity by 1 percent from 9 to 10 percent. Projected yield amounts to M93.5 million. • Project Implementing Units will face-out as contracts end.
• Curbing of Perpetual VAT refunds due to zero-rating of mining exports. The expected revenue is M200 million. • The secondment regulations will be revisited and amended accordingly.
• Royalties (Export sales tax on diamonds at 15% mine rate): The proposal is to treat royalties as a deductible expense for tax purposes. Expected collection totals M232 million. • Parastatals salaries will be reviewed with a purpose of standardising them.
• Excise taxes: introduction of alcohol and tobacco levy at 15 and 30 percent, respectively. Projected collection amount to M286.6 million. • Government Employment Policy will be revised amongst others, to reduce the high wage bill.
• Rationalisation of foreign missions will be finalised in 2021/22 fiscal year.
• The Government will engage in the review of on-going projects and projects on the pipeline with a view to create fiscal space for new investment projects that will boost economic growth and reduce unemployment.

Budget allocations
In 2021/22, the estimates are budgeted at M17, 253.8 million. SACU revenue is estimated at M6, 007.8 million, which is 33.1 per cent lower than 2020/21. Tax revenue is estimated at 7, 340.10 million, which is the largest source of revenue. Non-tax revenue is estimated at M3, 905.9 million. The total revenue target reflects a 14.5 per cent decline from the 2020/21 budget, mainly explained by a massive drop in SACU revenues. Tax revenue projection represents a 7.6 per cent decline while non-tax revenue increased. The reliance on SACU receipts continues to create an unstable and unpredictable fiscal environment, as it is susceptible to external shocks, particularly developments in South Africa.

The total proposed expenditures for the 2021/22 fiscal year amount to M22, 038.6 million. This includes M16, 301.0 million proposed for recurrent expenditure, while M5, 737.6 million is proposed for the capital budget. The 2021/22 expenditure budget proposals have increased by a marginal 0.4 per cent relative to 2020/21 budget. The increase in recurrent expenditure component by 3.9 per cent was offset by the 8.4 per cent fall in capital expenditure component. The proportion of capital budget in the total expenditure budget is roughly comparable with peer countries (Botswana, Eswatini). The difference however is in ensuring the quality and impact of that capital spending for Lesotho.

Fiscal Stance
The allocations imply a fiscal deficit of about M4, 784.9 million or of 13.1 per cent of GDP in 2021/22. Despite the sizeable financing gap, the budget speech does not highlight ways in which the gap will be filled. The December 2020 Lesotho Economic Outlook suggested that the projected fiscal deficits are set to be financed by a mix of drawdowns in government savings within the banking sector along with domestic and foreign borrowing. The current situation of large fiscal imbalances is likely to persist beyond 2021/22 given the expected pressures on SACU revenues amid weak economic growth prospects in South Africa. Thus, it is imperative for the government to implement growth-friendly fiscal adjustment measures to reduce the fiscal deficit and limit external debt accumulation at modest levels.

References
2021/22 Budget Speech. (2021). Ministry of Finance. http://www.finance.gov.ls/documents/Budget%20Formulation/budget%20speeches/2021_%2022%20Budget%20Speech%2017%20Feb%202021.pdf
IMF Country Report No. 20/228. (2020). IMF. https://www.imf.org/~/media/Files/Publications/CR/2020/English/1LSOEA2020002.ashx
International Monetary Fund. (2018). Regional Economic Outlook, April 2018, Sub-Saharan Africa: Domestic Revenue Mobilization and Private Investment. In 2. Domestic Revenue Mobilization in Sub-Saharan Africa: What Are the Possibilities? INTERNATIONAL MONETARY FUND. https://www.elibrary.imf.org/view/IMF086/24922-9781484339862/24922-9781484339862/ch02.xml?redirect=true
Lesotho Economic Outlook. (2020). Central Bank of Lesotho. https://www.centralbank.org.ls/index.php/reports/152-economic/548-macroeconomic-outlook-reports
Lesotho National Development Corporation | We Build Industry. (n.d.). Retrieved April 29, 2021, from http://www.lndc.org.ls/
NATIONAL STRATEGIC DEVELOPMENT PLAN 2018/19-2022/23. (n.d.). https://www.undp.org/content/dam/lesotho/docs/Reports/NSDP%20II%202019-2023.pdf
World Economic Outlook, April 2021: Managing Divergent Recoveries. (n.d.). IMF. Retrieved April 29, 2021, from https://www.imf.org/en/Publications/WEO/Issues/2021/03/23/world-economic-outlook-april-2021

THE FINANCIAL SERVICES SECTOR IN LESOTHO

Like the rest of the other sectors of the economy, Lesotho’s financial sector was battered by the Covid-19 pandemic. In the first instance, the Central Bank of Lesotho reduced the repo rate twice to maintain financial stability. Secondly, Government, encouraged mobile money and digital channels as the preferred means of payments exchange to limit the spread of the pandemic. These changes have given impetus to mobile money operators to gain popularity and eat into the pie of traditional banking.
Lesotho’s financial sector is made up of only four commercial banks, ten insurance companies, a handful of asset management firms and money transfer institutions and a dozens of insurance brokers, money-lenders and microfinance institutions. All these entities are licensed and supervised by the Central Bank of Lesotho using a number of legal and regulatory instruments at its disposal.

Legislation and Regulation
The Ministry of Finance is the financial sector’s policymaker. However, Lesotho’s monetary policy falls within the ambit of the Central Bank of Lesotho (CBL). As a statutory body, the Central Bank enjoys a fair amount of independence in formulating and implementing monetary policy. Anchored on the Central Bank of Lesotho Act of 2000, the Central Bank is also the banker, advisor and fiscal agent of the Government of Lesotho, which holds and manages the country’s official international reserves. Key to the functions of the Central Bank is also to manage the liquidity and fiscal stability of the country that ensures that the country maintains the currency peg of the Lesotho Loti to the South African Rand. Loti is the official currency of Lesotho. The Loti is pegged to the South African Rand on a 1:1 ratio by the Common Monetary Area (CMA), and both currencies are accepted as legal tenders in Lesotho.

The Banking Sector
Lesotho’s banking sector is dominated by the four commercial banks being Standard Lesotho Bank, Nedbank and First National Bank and the state-owned Lesotho PostBank. This makes Lesotho’s banking sector effectively an oligopoly. The biggest bank by share of assets at M10,9 billion is Standard Lesotho Bank, formed from the merger of the then government owned Lesotho Bank and the Standard Bank Group in 1995. The bank commands 54% of the marketshare.
As at the end of March 2021, the four banks had a total of 50 branches across the country. The three main banks, which are subsidiaries of South African banks control about 90.0 percent of the banking industry assets, revenue and deposits. According to the Central Bank’s sector review, banking continues to play a crucial role in the economy, as reflected by its balance sheet size to GDP, which was recorded at 83.4 percent in 2019. The sector remains the primary provider of financial services and products, financing several large projects through loans.

The performance of the Banking Sector
The banking system balance sheet size declined slightly by 1.3 percent, from M17.4 billion in 2018 to M17.2 billion in 2019. A loss in growth momentum was mainly driven by placements. Balances with banks abroad declined significantly by 49.5 percent, from M4.8 billion in 2018 to M2.4 billion in 2019. In addition, balances with local banks decreased by 46.8 percent, from M1.7 billion in 2018 to M902.1 million in 2019. A decline in placements reflects the increasing risk aversion behaviour of the banks as they restructure their balance sheets to invest in domestic money and capital markets. Hence, government securities continued on the expansionary path and built-up by 35.4 percent, from M1.7 billion in 2018 to M2.3 billion in 2019. The increase was mainly driven by the government paper, underscoring the need to monitor increasing sovereign risks. Despite the challenging business environment, the credit portfolio reflected growth of 8.1 percent, from M6.5 billion in 2018 to M7.1 billion in 2019, setting yet another milestone by crossing the M7.0 billion-mark.

With regards to the distribution of loans by type over a one-year horizon, personal loans continued to trend on the expansion path and reflected a double-digit growth of 12.7 percent, from M3.4 billion in 2018 to M3.9 billion in 2019. Business loans increased slightly by 3.6 percent, from M2.1 billion in 2018 to M2.2 billion in 2019. In addition, mortgages also reflected a single-digit growth of 3.5 percent, from M1.20 billion in 2018 to M1.21 billion in 2019.

Despite a moderate credit concentration risk observed on the entire loan portfolio, continued vigilance on business loans extended to real estate, transport, mining and construction sub-sectors remains necessary given a notable credit concentration risk (see Figure 1). On average 5 top borrowers in the banking system have loan facilities across all the banks, some of which are struggling to service their facilities. This persuaded the need for banking system to contain systemic risk. Even though most of those facilities were collateralized, however, a threat somehow remains due to inherent risk in collateral, specifically during episodes of financial distress, which turns to lower the value of collateral. (Source: CBL Supervision Department Annual Report 2019)
Design notes: Insert figure 2 – Distribution of Business loans: 2018-2019 (%) ref page 11 of CBL Supervision Annual Report

The Insurance Sector
The industry currently consists of 10 insurance companies, of which 6 are in the life insurance business and the rest in the general insurance business. One insurance license was issued to Trans-Africa Insurance Company Ltd, in 2018, and it began its operations in 2019. Alliance Insurance Company Ltd, which was doing composite insurance, is split into two companies -Alliance Life Insurance Company and Alliance General Insurance Company.

The Central Bank has initiated the process to repeal the Insurance Act of 2014, which was beginning to show some gaps during its implementation. The purpose of the repeal is further to align with best international practices and for convergence within the regional SADC sector. In an effort to improve the current regulatory environment, the Bank collaborated with the Government to develop draft regulations. These included the Licensing of Insurance Regulations, Qualifications Notice for Intermediaries and Micro Insurance Regulations. These pieces of legislation are expected to improve on the prevailing gaps of the Insurance Act 2014 while the process to repeal is ongoing.
The Performance of the Insurance Sector
To provide a glimpse of the insurance sector, latest available performance figures indicate that the insurance industry collected slightly in excess of M2 billion in gross written premiums with profits of about M416 million. The long-term sector contributed the largest portion of premiums collected at 77.5 percent, given its dominance in the sector. The sector further realised positive profits through the year and this boosted the overall performance of the insurance industry at the end of 2019.

Short-term insurance sectors collected premiums amounting to M451 million, of which 56.6 percent was ceded to reinsurers. Cession of premium is the requirement of the law that makes it possible for insurers to further insure the risks that they take. However, there must be a balance to this as higher rates of premium ceded indicate that local insurers only act as front runners to foreign insurers while excessively low rates may raise the question on capacity of local insurers to shoulder high risk. The collected premium for the short term sector reflected an increase of 10.4 percent compared to the previous year.

The long-term insurance sector recorded gross written premium amounting to M1.5 billion, which was an increase of 17.2 percent compared to the collections of 2018. The sector continued to boast high risk absorption capacity with a high premium retention rate of 95.3 percent. The high retention rate is backed by huge capital amounts and excessive levels of liquidity held by the sector. Trends in premium collection by the sector indicates that life cover business class contributes a larger share of premiums collected at 65.6 percent and this is followed by fund management business at 20.9 percent. Fund management business contributes a large portion as major players have investments or funds management linked to their products such as funeral insurance or they manage provident funds for multiple corporates.
Design notes: Insert figure 15 – Long Term Sector Gross Premium by Business Class. Ref page 36 of CBL Supervision Annual Report

In terms of underwriting performance, the long-term sector registered an underwriting profit of M318.0 million during 2019; an increase of 63.1 percent compared to the previous year. From the net underwriting revenue generated by the sector, claims amounting to M778.9 million were paid, accounted for 22.0 percent more than the previous year.

Mobile Money
The advent of Mobile Money was introduced in Lesotho when Econet Telecom Lesotho (ETL) launched its mobile money service, Ecocash, in October 2012. Vodacom Lesotho (VCL) launched its Mpesa in July 2013. Three other players, namely; Smartel Money (Pty) Ltd, Lesotho Post Bank and Chaperone Limited, were licensed in 2019 under the Payment Systems (Issuers of Electronic Payments Instruments) Regulations 2017.

The rise of Covid infections in 2020/21 has created a fertile ground for the growth of Mobile Money, which currently enjoys support from the regulator as regulatory barriers are not as stringent as those of traditional banking. Mobile money platforms provide services on Unstructured Supplementary Service Data (USSD) to allow registered customers possessing either internet-capable mobile phones (smartphones) or basic mobile phones (those without internet) to access services such as person-to-person (P2P) money transfers, cash-in and cash-out (CICO) services, airtime purchases and bill payments (e.g electricity and water).

Lesotho PostBank (LPB) was licensed to launch its e-money platform, Khetsi, to offer mobile money services in addition to its product offerings provided under its banking license. This e-money platform is interoperable with LPB’s bank accounts and allows registered mobile money users (including those without bank accounts) to access and use mobile money services. These services are cash-in and cash-out (CICO) services, P2P transfers, bill payments, airtime purchases, nano loans and group savings facilities. The interoperability between Khetsi and bank accounts enables transfers from e-money accounts to bank accounts and cash-out at LPB’s automatic teller machines (ATMs).

According to the Central Bank, by the end of December 2015, both Ecocash and Mpesa had registered a total of 1.06 million customers and 3,479 agents, representing market penetration of about 48 percent. This penetration indicates that mobile money is growing at a very fast pace. It further indicates that as a proportion of total commercial bank deposits, the value of mobile money transactions in Lesotho increased from approximately seven percent in 2014 to 21 percent in 2015.
Maseru Securities Market
Maseru Securities Market (MSM) is an initiative of the Government of the Kingdom of Lesotho which is executed by the Central Bank. The market was established by law in 2014 through the publication of Capital Markets Regulations of 2014. These regulations and other regulatory instruments provide for the operation of a market that is fair, orderly, secure, and transparent. It provides for investor protection and the licensing of all market players.
The MSM is therefore a non-profit making institution created to facilitate the centralised trading of financial securities in the country. It is part of wider financial sector reforms aimed at improving the financial sector in the country and to encourage share ownership at previously privatized and a majority of companies in Lesotho. The Maseru Securities Market will also provide instruments to raise medium to long term capital for these entities, which will eventually give them the propensity to grow and spur economic development in the long run. Appetite in listing on the Maseru Securities Market is increasing. Sekhametsi Investment Consortium valued at about M1.2 billion, is Lesotho’s largest investment company that is gearing itself to list with an offer of about 20% of its issued shares capital in 2021/22.

Ed…
Lesotho Embraces the African Continental Free Trade Area
Writes Manyathela Kheleli

Lesotho is a signatory of the African Continental Free Trade Area (AfCFTA), along with other 53 countries on the continent. Once fully implemented, The AfCFTA agreement will be the biggest trade deal in the world in terms of the number of participating countries since the establishment of the World Trade Organisation in 1994. The agreement came to force on 1st January, 2021 and is the continent’s flagship project for achieving Africa’s aspiration regarding ‘The Africa we want’ Agenda – as outlined under the Africa strategic Framework for Development Agenda 2063.
For Lesotho, joining the Africa Free Trade Area comes with opportunities, but also with a lot of challenges which will need dedication from Basotho producers, with full support from the government through responsible ministries. With the Africa Growth and Opportunities Act (AGOA) uncertain, AfCFTA, presents another opportunity, this time with prospects in the agro-industry.

African economies have traditionally been fragmented and lacking the scale to compete globally, which has led to the pursuit of market integration, particularly towards a single market on the African continent. The AfCFTA agreement is made up of 54 African countries merging into a single market of 1.3 billion people. This resource, with the merit of enhancing sustainable markets, could create an economic bloc with a combined GDP of $3.4 trillion. Once in place, intra-African trade is expected to grow by 33%, and Africa’s total trade deficit is expected to be cut in half. In addition, the AfCFTA could generate combined consumer and business spending of $6.7 trillion by 2030, according to the Mo Ibrahim Foundation.

AfCFTA is not simply a free trade agreement; it is a vehicle for Africa’s economic transformation. Through its various protocols, it would facilitate the movement of persons and labor, competition, investment and intellectual property. The agreement was expected to come into force on July 1, 2020, but was postponed due to the COVID-19 pandemic, which abruptly stalled all ongoing negotiations. The AfCFTA eventually came to force on 1st January, 2021.

The African Center for Economic Transformation (ACET) postulates that there is a need for transformational change centered on innovation and technology to enforce bold decisions that could aid Africans and redefine market integration over time. The time for Africa to adopt swift measures against all odds is now. Paradigm-shifting of mindsets to grasp the opportunities that the new normal presents must be at the forefront of AfCFTA’s implementation. Moreover, border closures have returned, reminding Africans of their threat to economic growth. Allowing AfCFTA to launch, even in the face of the pandemic, sends clear signals to skeptics that Africa may be gradually moving away from the institutional failures that often chokes its trade agreements and protocols.

As an immediate step, countries must amend their AfCFTA implementation plans to include smart and innovative ways that embrace the new normal. It will take a lot of effort, but leaders should forge ahead with the AfCFTA, focusing on technologically savvy ways to maximize benefits that may accrue. This will send a strong signal to the rest of the world that African leaders have moved past just signing agreements and protocols they do not intend to uphold, ACET recommends.

During the high level meeting on free trade which was hosted in the country by Ministry of Trade and Industry in cooperation with a Tripartite Task Force on Free Trade Area, the Ministry revealed that Lesotho is currently faced with challenges of low productive capacity, lack of diversified exports, indicating that there is increased competition from more advanced economies for local manufacturers, and other technical barriers to trade. The ministry however noted that there is a huge potential for Lesotho to compete favourably in the African trade, with exports including among others, agricultural products, textiles and clothing, manufactured products, cosmetics and bottled water to mention a few.
The single common-area initiative carries numerous benefits for countries on the continent, including enhanced intra-Africa trade, commerce and tourism; facilitating labour mobility; improved transfer of knowledge and skills on the continent; promotion of African identity and social integration; improvement of cross-border infrastructure and shared development; generating a comprehensive approach to border management; and promoting the rule of law, human rights and public health.

The AfCFTA is poised to unite the continent’s 1.3-billion people in a single economic bloc valued at $3.4-trillion (R51.8-trillion), the initiative will create a single market for goods and services, as well as a customs union that facilitates the movement of people, money and goods across the continent. AfCFTA will also enable the Southern African Customs Union (SACU) and the continent at large to deepen integration, a move that is also in line with SACU’s own objectives. The 13th Extra-Ordinary Session of the African Union Assembly of Heads of State and Government held on December, 2020 has set June 2021 as deadline to complete all the Built-in Agenda issues for Phase I of the AfCFTA negotiations, including tariff offers and outstanding Rules of Origin.

ith such an enormous market presented by the AfCFTA, it is incumbent upon the SACU business sector to seize and capitalise on the opportunities to grow their business through regional value chains and cross border trade. Without the participation of the business sector, all these efforts will be meaningless. The SACU Council of Ministers has agreed to prioritise industrialisation through the development of Regional Value Chains, Export and Investment promotion.

The Prime Minister, Dr Moeketsi Majoro has also aknowledged that the African Free Trade is going to open a large market for Lesotho’s produce across Africa. He indicated that Lesotho is already trading with North America, Europe and South Africa and this opportunity is expected to make known, across the globe, the products produced in Lesotho. Prime Minister Majoro however indicated that the agreement of joining the Africa Free Trade comes with a lot of challenges which will need dedication from producing Basotho with full support from the government through responsible ministries.
As part of Africa’s efforts in strengthening and forging ahead with AfCFTA, the African continent is also expected to roll out a single passport for all nations this year (2021). The single passport will be a crucial element for the success of the African Continental Free Trade Area (AfCFTA) agreement, which allows for the free movement of people and goods across the African continent.

According to the statement from AU, freedom of movement is one of the key tenets of the AfCFTA agreement, saying to date, only political figures and AU officials have been using AU passports adding that travelling in Africa will hopefully become easier in future. The government of Lesotho also supports the Africa free movement.
The Ministry of Foreign Affairs and International Relations believes that the single passport will contribute to the free movement of people and free trade of goods across the continent. The Ministry added that the single passport for all nations is a good move by the AU which as a country, Lesotho should not let pass.

Lesotho is a signatory to a number of trade agreements including SACU, the Southern African Development Community (SADC) Free Trade Area, African Growth and Opportunity Act (AGOA) and the Cotonou Agreement. So far, the country benefits immensely from SACU, which is the oldest customs union in the world ratified in 1910. In 2020, Lesotho received M8.9 billion in SACU receipts, which accounted for 21% of GDP. Lesotho also continues to benefit immensely from AGOA, which has helped to create and maintain about 40,000 jobs in the garment factories that produce duty free apparel to the US market.
It remains to be seen how the country will take advantage of the AfCFTA. At the outset, the potential for immediate gains present themselves in the agricultural sector. The International Trade Centre’s on-going work in Lesotho aims to develop national capacity in the production and marketing of high-value Fresh Fruit and Vegetables (FFVs) and developing of value chains in the agriculture sector. The AfCFTA also presents Lesotho with agro-processing and further sectoral linkages, where plants such as the currently defunct Basotho Canners have opportunities to be revived.
In the current set up, African countries with large manufacturing bases and enabling physical and industrial infrastructure, such as South Africa, Kenya, Egypt, Morocco, and Ethiopia are in a better position to gain the expected benefits of the AfCFTA. African governments must commit to keep working so that the gains from the AfCFTA are distributed as fairly as possible, making sure no country is left behind, and ensuring that the AfCFTA becomes a catalyst for sustainable economic development for the continent as a whole. Whilst this commitment is for the African collective, it is important for the government of Lesotho and its people to carve a niche for Lesotho to gain from this agreement, starting with the agricultural sector.

Electricity and Power in Lesotho
Writes Lawrence Keketso
Lesotho’s energy sector is one of the most infant and under-developed, with the country’s efforts towards self-sufficiency in electricity generation well on course and in line with the national development strategy goals. The country is already enjoying benefits of an almost 100 percent clean energy, with a mix of hydro, wind and solar power generation catching and attracting capital budgeting and investments in recent years.
With the 72MW hydro-power plant in ‘Muela being the only major electricity producer in the country, the recently commissioned construction of the 30MW solar electricity project in Mafeteng at Ha Ramarothole, could see the country lower its annual electricity imports by almost 50 percent, while also likely to attain total self-sufficiency in the next twenty years

In further pronouncing its commitment to developing the sector, the government has stated in its recent fiscal policy statement: “…in an effort to increase electricity generation in the country, the Ministry of Energy signed the eight concession agreements with a private company to develop mini grids in rural areas to provide electricity to 6,000 households. Furthermore, 10 agreements with four private companies were signed to establish energy shops for energy efficiency and solar lanterns in five districts of Mokhotlong, ThabaTseka, Quthing, Qacha’s Nek and Mohale’s Hoek. The Lesotho Electricity Generation Company (LEGCO) has been established to oversee the construction and the commencement of phase I and phase II of Ramarothole Solar Electricity Generation Facility in Mafeteng which will generate 30MW solar electricity. Furthermore, the implementation agreement was finalised with an Independent Power Producer to start the construction of 20MW solar generation. The Lesotho Renewable Energy and Energy Access Project for off-grid electrification and grid extension to 6 industrial zones (Butha-Buthe Ha-Belo, Maseru Tikoe I and II, Mokhotlong, Berea and Qacha’s Nek) was launched in the third quarter of 2020/21 fiscal year.”
The statement by the Minister of Finance in his budget speech in February also adds that during the 2021/22 fiscal year, about 1,100 households and two schools will be electrified at Belo Industrial Zone in Butha-Buthe district and 16 mini grids will be launched in rural areas.
While the government of Lesotho is focusing on a number of small to medium power generation projects, the second phase of the Lesotho Highlands Water Project (LHWP II) has commenced, and the advance infrastructure programme is at an advanced stage. It is expected that expenditure under the LHWP II activities will be in the order of M4 billion in the fiscal year 2021/22. The tender for the construction of the main works, water transfer works (dam and tunnel) and for the consultancy services for the design and construction supervision of the hydropower component will be advertised in the first and second quarter of 2021/22 fiscal year, according to the Minister of Finance.
The commencement of the works at Polihali also brings a new hope for a much larger hydro-power facility once the feasibility study has been completed.
The electricity supply industry in Lesotho is dominated by two state owned entities, namely the Lesotho Electricity Company (LEC), which is the monopoly transmitter, distributor and supplier of electricity, and the Lesotho Highlands Development Authority (LHDA), which is the main generator of electricity through its ‘Muela Hydro Power Station. The generating station is part of the Lesotho Highlands Water Project.

Changes took place in the electricity industry in the post-2000 period, when, as part of its programme on the restructuring of state-owned assets, the Government decided that LEC would be privatised, while ‘Muela hydro generation would be ring-fenced within the LHDA to ensure that its costs were known.

MEDIA AND TELECOMMUNICATIONS

Lesotho’s Media and Telecommunications sectors have not been spared the negative effects brought about the Covid-19 pandemic. With many of the smaller operators in the main-stream media being forced to downsize or work with very thin budgets, others have even had to close shop. As for the telecommunications sector, there has been a slight slow-down during the Covid-induced economic lock-downs, especially with works planned for infrastructural development.
Like its peers in the category of least developed countries, Lesotho enjoys a vibrant and growing media and telecommunications industry. There are vast opportunities for investment and growth in this sector, as there are also challenges in relation to the existing gaps in legislation, infrastructure and probably technological inequalities in relation to other countries. The size of the country’s economy is only relative to its advancement in technology and media pluralism.

In the sub-region Lesotho media history dates as far back as 1863 with the first newspaper, Leselinyana la Lesotho (the light of Lesotho) or simply Leselinyana, published in 1863, some thirty years after the arrival of the first missionaries in 1833. The country adopted the world of media and the literary sectors as early as the establishment of the evangelical missions and movement in the region, Leselinyana has been in circulation until the mid-2000, when it eventually shut down.
The country however still has many publications, mostly weekly tabloids with various players such as the Roman Catholic Church owned Moeletsi oa Basotho (Basotho Advisor), the state newspapers Lesotho Today and Lentsoe la Basotho (The Voice of Basotho) and various private players like Public Eye, Lesotho Times, The Post. There are other publications that come and go as well as numerous periodicals and magazines.
In recent times, print media developments in Lesotho have seen the migration from print-only to online versions of all major weeklies of the country. To date, Lesotho does not have a daily newspaper, and most papers in circulation are published on Tuesdays, Thursdays, Fridays and Sundays. On the alternate days there is a deficit of current news. The gap in current news has been filled by an emerging trend of citizen journalism, especially on facebook with platforms such as Hoatiti News, Liotloana and others. Whereas citizen journalism is a new trend, with faceless writers and generally lacks the credibility of mainstream reporting, it has been instrumental in breaking stories that provides leads for Lesotho tabloids.

The Broadcasting Sector

There are 27 licensed radio and three television stations in Lesotho. Radio Lesotho and Ultimate FM are radio stations classified as public broadcasting, where the ownership is with government through the Ministry of Communications, Science and Technology. Other Radio stations are in private ownership or community radio stations. Most of these private radio stations also stream live on internet. Sky Alpha, one of the latest entrant in the market is the only radio station that only broadcasts online, a new phenomenon in Lesotho.

Radio Lesotho, being a public broadcaster and the biggest by reach was established on 7th September 1964, it started with a 660 watts transmitter, as the department of broadcasting directly under the control of the resident commissioner. Radio Lesotho’s monopoly of the airwaves only came to a stop in 1998 when the country started to open up private radio stations. The first was Moafrka FM, and many others then followed until now when we are on the count of 27, which is also poised to grow as more and more community radio stations are being established. It is worth noting that almost all private radio stations in Lesotho do not have transmitters, but and rent their transmission infrastructure from Radio Lesotho. This has for a long time compromised media independence and pluralism, where radio stations that produce content that is critical of government face the risk of being switched off air, usually under dubious circumstances.
The Lesotho Television was set up in 1988 by the government of Lesotho. The television started its broadcast with a live transmission of thirty minutes from MNET transmitters. Although Lesotho Television broadcasts 24/7, the station is still unable to broadcast a lot of local content, which is only limited to about four hours a day dominated by news, current affairs, sports and a limited number of magazine programmes, The station broadcasts locally and internationally via DSTV on Channel 191.

Telephony, Internet and Mobile Money
In 2000, government-run Lesotho Telecommunication Company (LTC) which was providing telephones and fax services was privatized, opening doors for private investment in the sector. The project included a cellular telephone service, with the government relinquishing ownership in 2001.
The internet has made slow inroads reflecting low incomes and a small potential market. Before localizing the service, Lesotho’s Office Equipment’s Internet connectivity was through service providers in South Africa.
There are two mobile operators in Lesotho, being Vodacom Lesotho and Econet Telecom Lesotho and Vodacom Lesotho. It is the leading provider in Lesotho, with almost seventy percent of all national subscribers. The network has fair coverage and speed with 3G networks and 4G/LTE introduced in 2014 in major towns. The network has recently introduced 5G, being one of the pioneer projects in Africa, though still under the testing phase.
Another player is Econet Telecom Lesotho which came into being following a merger between Telecom Lesotho and Econet Ezi-Cel Lesotho in 2008, the merger of the two companies allowed ETL to provide both fixed and mobile services under one license. ETL has 2G on EDGE on 900 MHz, 3G up to HDSPA, on 2100 MHz. Econet currently provides high speed fibre connectivity on internet and plans are afoot to rollout this connectivity throughout the country.
There is effective competition in the mobile sector between South Africa-based Vodacom and ETL with low prices. For both operators 2G is on 900 MHz, 3G on 2100 MHz and 4G/LTE, started on Vodacom on 800 MHz. MTN South Africa roams on Econet in Lesotho and Vodacom Lesotho roams on Vodacom SA.

With the advent of mobile money, which is growing rapidly in Lesotho, Econet Telecom Lesotho and Vodacom Lesotho have encroached the turf of the financial services sector with their offering on Ecocach and M-pesa respectively.. Whereas mobile money addresses the challenges for those sections of the society that are underbanked or unbanked, a lot still remains to be done on the regulatory side, where the Central Bank of Lesotho has to provide adequate oversight to ensure that mobile money transactions are safe, secure and in line with international best practices on Know Your Customer (KYC) parameters.

Regulation
The Lesotho media and telecommunication sector is guided by laws spread across the numerous acts of the country. The sector is regulated by the Lesotho Communications Authority (LCA) which also discharges its function to monitor this critical sector in the development of the country.
It should be noted that the LCA, in discharging its functions under the Communications Act No. 4 of 2012 and the subsidiary legislation may issue enforcement orders, conditions of service to service providers, guidelines and prescribe procedures for licensing and dispute resolution. The Authority may also adapt international best practices from international treaties and activities of regional organisations to which Lesotho is a party in the formulation of legislation.
With more private players in the broadcast sector being registered and the use of social media gaining momentum in the public space, the LCA as the lead has recently engaged with multi-stakeholders on the way forward in finding the best way to bring control as well as protection of citizens and state institutions.
Some of the most important changes in the legal framework as well as guiding tools for the sector to operate smoothly, professionally and by abiding by the set laws of the state, will be expected to come out of the ongoing national reforms processes – which the media is part of.
Specifically on the telecommunication sector, the LCA is also laying the ground to enforce the rules of fair play and healthy competition while recently having reportedly looked into expansion possibilities in the sector or even introduction of other service providers.

Lesotho has also benefited by gaining connectivity to several submarine fibre optic cables which land on Africa East and West coasts. These fibre optic connections have quadrupled international bandwidths since 2012 and largely contributed to lower end-user prices to make internet connectivity in Lesotho relatively on par with other countries in the region.
The LCA is currently examining the potential introduction of a SIM Card registration in the country in a bid to curb crimes committed using mobile phones as well as having recorded data on mobile services usage and coverage. Presently service providers and the regulator are encouraging users to register their SIM Cards while the legal necessities for this exercise to become law are being finalised. For the time being, Lesotho remains one of only a handful of African countries without any form of a binding SIM card registration legislation in place.

In the 2021-22 fiscal policy, the Government of Lesotho through the Ministry of Communications, Science and Technology has committed to the implementation of E-Government Infrastructure project which will increase broadband coverage in rural and unserved areas through construction of 48 Mobile sites. This construction will be undertaken over the medium-term. The project will further construct 96 km fiber network from Roma to Thaba-Tseka in order to improve the quality of E-services.
The Government digital services will also be strengthened through the development of Government Electronic Payment Gateway and the Rural Community Payment Network during the current financial. Under this project, 40 common digital services centers will be established.
The Ministry will also review and develop a legal regulatory, policy and institutional frameworks to lay the ground for the private sector-led economic growth and job creation. The ICT policy Review and Cyber Security Bill are also at an advanced stage with most of the reforms that will be proposed expected to be in place before the general elections scheduled in the second half of 2022.

‘This is not a Burial, it’s a Resurrection’: Another film that has gone to put Lesotho on the Map.
Writes Manyathela Kheleli with additional reporting from the work of Michael Phillips and Zoe Ramushu

The picturesque Mountain Kingdom and its rich cultural heritage has produced splendid settings for some of the best films in recent history, the latest being ‘This is not a burial, it’s a Resurrection’, written, directed and edited by Lesotho’s own Lemohang Jeremiah Mosese, now based in Berlin, Germany. The film is the Mountain Kingdom’s first ever submission to the Oscar Academy Awards and the Golden Globe Awards in the category of Best International Feature Film. Though it did not make it to the podium, the film has gone on to rake in twenty-seven other accolades the special jury award at the Sundance Film Festival in the United States. Mosese’s film has certainly lifted the veil to affirm that Basotho are richly endowed with culture and talent that has what it takes to make it in world class storytelling on the big screen.

Shot in April 2019 at the village of Ha Dinizulu, some fifty kilometers out of Maseru into the foothills of the Maloti mountains. The film is rich in its depiction of Basotho way of life. It shows the splendor of beautiful scenery, the beautiful mountains and valleys of the Kingdom highlighted by the iconic Thabana Li Mmele mountain in central Lesotho. The film opens its storyline with a narrator who reveals to ‘Mantoa, the main actor that “Death has not forgotten you.” The film is tough thematically as well as technically. It is a story about the resilience of the human spirit, shot in the most trying of circumstances.
The storyline revolves around the grief of ‘Mantoa, who has learnt that her last remaining relative, her son, has died in a mining accident in the neighbouring South Africa. Frail, planning and desiring for her own death, ‘Mantoa is given the news that a dam is going to be built in her village. This big dam is going to submerge her village and wash away the graves of all her family and relatives that have died before her. These news become the turning point to ‘Mantoa. She reawakens from waiting for her death and raises a solitary uprising to defend the dead. The film showcases a conflict between the cultural norms and the value that the Basotho traditions bestows on the dead and development for the future in the dam that will benefit the community economically and otherwise. ‘Mantoa will not succumb to the thought of relocating the village nor the cemetery. ‘Mantoa is consoled by a priest who tells her to a place of “total surrender, where faith, courage and will becomes obsolete.”
This film juxtaposes existential questions about the way of life of generations of grandmothers in their lyrcal, unhurried and unbothered life that is now being tested by the fast-paced world and all its troubles. The film also explores the universally poignant question that rings ever more urgent on “where is God in all this?” A movie critic and writer, Zoe Ramushu perfectly summarises the plot when she says that: “The tension between Western religion and African traditional beliefs sits comfortably beside patriarchy, colonialism and the struggle between rural and urban life.” In the film, ‘Mantoa’s petite frame is often seen but never heard, which leads us to believe the vow of silence that ‘Mantoa has taken to avoid spewing her bitterness at life and at God. But when she speaks against the project, she becomes a force of nature, relentless, unapologetic and unyielding. She struggles to make sense of her tragedies, and the sacrifices that she has to make, which shake the foundations of her religion.

What is also unique about the film is the unorthodox approach that the filmmaker used to create this awarding winning film. Mosese did not follow conventional norms and broke rules to create the film. First, the main actor is an 80 year old woman. The film has silent moments and very unconventional cinematography. All these attributes, together with the storyline carry themes that blend seamlessly to provide clever and multilayered metaphors that enhance a powerful storyline. Over and above it being a film, ‘This is a not Burial, its a Resurrection’ is an art exhibition on its own.

The cast is made up of mainly Basotho actors or those that were born in Lesotho and made their name in South Africa. Such include Jerry Mofokeng wa Makhetha and Makhaola Ndebele. Other local actors of note in the film include Tseko Monaheng, Sephiwe Ndzima and Silas Monyatsi. Breaking tradition, the lead actor is the internationally decorated, now late Mary Twala Mhlongo. She was 80 when the movie was shot. Mary sadly died shortly after the film first premiered at the Berlinale Forum in 2019.

The brains behind this film, Jeremiah Mosese says what inspired the film was his recollection or Nelson Mandela’s visit to Lesotho in 1995 to ‘…inherit the deal made by the South African apartheid regime and Lesotho’s military junta that put together the Lesotho Highlands Water Project. He adds that one of the villages that was resettled by the construction of the dams was his grandmother’s village. The storyline, though largely fictitious and mostly dramatic, questions the water project and what it has done to affect the foundations of the Basotho culture, especially on death. “I am personally not for or against progress. I am more interested in interrogating the psychological, spiritual and social elements that come with it.” Mosese says. . In the film, Jeremiah brings up a debate on how developmental projects can at times affect the social fabric of life. Through the character of ‘Mantoa, the film advocates for resilience and for society to challenge what is happening in their lives. The filmaker says the film was also inspired by the work of the late Senegalese filmmaker, Djibril Diop Mambety from his film, ‘Hyenas’.

Mosese’s film first premiered at the Berlinale in Germany and has so far made it to more than twenty international film festivals across the world. The film has been getting very powerful reviews and raked in awards along the way. Mosese’s film and cast has won 27 awards to date in the categories including best African film, best cinematography, best director and others. One of the most prestigious award it has won is the Sundance Special Jury Award. Sundance is the largest independent film festival in the United States. The film was also Lesotho’s first official entry to the Oscar Academy Awards and Golden Globe Awards in the category of Best International Feature Film. ‘This is not a Burial. It’s a Resurrection’ has been released in the South African movie circuit and will be on the DSTV bouquet before the end of 2021.

Another of Lesotho’s highly acclaimed actor, scriptwriter and director featuring in the film, Silas Monyatsi says Mosese’s film is a good ambassador showcasing Lesotho’s potential in the film industry. He looks at Jeremiah as an exceptionally talented thinker who can only blossom with time. “He is a divine soul, and there is so much more we are going to get from him after this movie.” He added. Monyatsi has himself produced independent films like ‘Kau la Poho’, which has premiered in Fespaco, the biggest film festival in Africa. ‘Kau la Poho’ was also very well received at the Zanzibar Film Festival and shown on Tanzanian Television. On the future of film and the arts in Lesotho, Monyatsi laments that starting with the absence of an arts council in the country, there is no legislative and a structural foundation that can pave way for the development of film in Lesotho. What remains abundant is talent, as demonstrated by Jeremiah Mosese and others. This implies that as a country, Lesotho could be losing an opportunity to nurture talent that is endowed with potential to take all forms of art to greater heights.

The first depiction of Lesotho in film dates back to 1975 in a film titled e’Lollipop, shot in Lesotho and New York. American Ninja 4: The Annihilation was the first Hollywood movie to be shot in Lesotho in 1989. In the movie, Silas, the late Eddie Poone and Bimbo Masholugu got roles. In 2013, another epic film titled ‘The Forgotten Kingdom’ written and directed by Andrew Mudge became a household hit that put Lesotho in the pedestal in modern day film. Then comes ‘This is Not a Burial. But a Resurrection’, which is in the league of its own. Special because it has been written, directed and edited by Lesotho’s own Jeremiah Lemohang Mosese and was able to gain commendable international recognition. We wait to see what’s next. Mosese and his producer, Cait Pansegrouw say they are already planning their next film and will be coming back to the Mountain kingdom soon.

Lesotho’s Minerals and Mining Policy
Writes Manyathela Kheleli
The vision of the Ministry of Mining is to provide for responsible and globally competitive exploitation of the country’s mineral resources in a manner that results in sustainable socio-economic benefits for the country. This vision is premised on the principle that the sovereignty and ownership of mineral resources are vested on the Basotho nation. Lesotho’s minerals and mining policy also seeks to advance the equitable, optimal and sustainable exploitation of the country’s mineral resources through domestic empowerment and integration, as well as participatory and inclusive approach of the Basotho nation.

In 2012, the government of Lesotho established a fully-fledged Ministry of Mining in recognition of the growing importance of the Mining Sector in the national economy. Largely dominated by diamond mining, the sector is expected to contribute more than 10% to the country’s GDP in the foreseeable future. The Lesotho mining sector, is perhaps the country’s best kept secret. Despite the country having an estimated 405 kimberlite bodies, only a few of these are currently being mined on a commercial scale. The country has 39 known and recorded kimberlite pipes and 366 kimberlite blows and dykes in total, of which 24 have been shown to be diamondiferous.
The history of diamond mining in Lesotho can be traced back to 1967, when an artisanal miner, Ernestine Ramaboa unearthed a brown coloured diamond that came to be known as the Lesotho Brown weighing 601 carats. The diamond was found at Letseng-la-Terae, where the present day Letšeng Mine is now found. In 1968, the diamond was purchased through an auction by an American jeweler Harry Winston. A fitting epilogue to the story is that Winston invited the Ramaboas to New York City for the unveiling and cleaving of the diamond. The moment was broadcast on live television across the United States (Balfour, 1981). The Lesotho Brown rough yielded 18 diamonds, including the Lesotho I, a flawless 71.73 ct diamond, and the Lesotho III, a 40.42 ct marquise purchased by Aristotle Onassis and given to Jacqueline Kennedy as an engagement ring.
Having identified the potential of Letšeng-La-Terai as a diamond minefield, full scale mechanized mining was eventually undertaken by De Beers when Letšeng Diamond mine was officially opened in November 1977 at a cost of more than R30 million (US$37 million), it went at least M6 million ($7.4 million) over its intended budget. In 1982, De Beers decided to close operations because the cost of running Letšeng had become untenable, largely because of its remoteness and what De Beers argued to be very low ore grade, which made production costs very high. For its five years of operation, De Beers’s production totaled 272,840 carats recovered from processing 9.4 million tons of kimberlite at the Main pipe, for a grade of 3.03 carats per hundred metric tons. About 65% of the output was gem quality, while 27% was industrial and 8% was bort (suited for crushing into abrasives). Only 7.6% of the production was larger than 14.7 ct, yet these accounted for 62% of the mine’s revenue (Venter, 2003).
Currently, there are about five operational diamond mines in the country. The biggest players in the industry include the same Letšeng diamond mine (Letšeng Diamonds), now operated by Gem Diamonds. Letšeng, is the world’s highest-dollar-per carat mining operation and the highest diamond mine in the world at 3200m above sea level. Another record for Letšeng Diamond mine is that the has grown to become one of the largest open pit diamond mines in the world, processing ore from two kimberlite pipes, the main pipe spanning over 17 hectares and a satellite pipe spreading over 5.2 hectares. At the moment, Letšeng Diamond mine is estimated to produce around just over 150, 000 carats per annum. Gem Diamonds took over the mine through the purchase of JCI–Matodzi shares at over M900 million in July 2006.
Liqhobong Diamond Mine operated by Firestone Diamonds boasts not only the largest capital investment in the country’s mining industry history at M2.1 billion, but also the largest production capacity of 1 million carats per annum for at least 15 years of its mining lease agreement. At that production level, Liqhobong will more than quadruple the current productivity in the diamond mining industry.
Kao mine operated by Storm Mountain Diamonds(Pty) Ltd (SMD) is another diamond mine in the District of Botha Bothe. SMD is jointly owned by Namakwa Diamonds Limited and the Government of Lesotho. The Government of Lesotho holds 25% of the free carry shares in SMD and the operations are entirely funded by Namakwa Diamonds Limited.
The Kao deposit consists of two kimberlite pipes, the main pipe (19.8 ha) and a satellite pipe (3.8 ha), located 350 metres north-west of the main pipe. The main pipe is the focus of the current mining operations and it has a resource of around 142 meters, indicated and inferred, containing an estimated 9 million carats at an average grade of 6.5 carats per hundred tons. Kao Mine, produces around 260,000 carats per annum.
The other diamond mine in Lesotho is Mothae Mine, owned by Lucapa Diamond Company Limited with 70 percent shares and the government of Lesotho with the remaining 30 percent. The mine is listed in the Australian Securities Exchange (ASX), with a secondary listing on the Frankfurt Stock Exchange. Lucapa’s second high-value mine, Mothae kimberlite project in diamond-rich Lesotho, commenced production in January 2019.
Lesotho mines, notably Letšeng, continue to find some of the world’s biggest and precious diamonds to date. In keeping with its history as the highest dollar per carat kimberlite diamond mine in the world, Letšeng continues to produce some of the world’s best diamonds. In the month of May 2021 alone, the mine produced a 254 and a 370 carat Type II diamonds. In 2020, the mine reported a recovery of 16 diamonds over 100 carats.
There still exists a grey area in the position of Government on artisanal and small scale mining. Characterized by minimal machinery and physical labour, artisanal mining generally operates without legal mining titles and valid contracts and is often limited to marginal plots. In 2020/21, the Minister of Mining, Serialong Qoo announced a grace period to collect and register illegally mined diamonds so that they can be certified and sold in formal markets. About 400 diamonds were collected from Basotho artisanal miners and the ministry has committed to sell the diamonds on behalf of the miners without imposing any levies or taxes. This move forms part and parcel of the Mining Policy to address abject poverty in the rural communities. The move is also a demonstration that Government recognizes that artisanal mining can contribute to job creation and increasing disposable income, thereby increasing local purchasing power and stimulating economic growth, particularly in the rural areas. In its policy statement, the Mining Policy intends to transform and reposition the artisanal mining sub-sector.
Lesotho’s mineral resource potential is not only limited to diamonds. There are significant occurrences of clays with potential for the clay industry to thrive in the country. Significant deposits of heavy clays, white-firing clays and stoneware clays have been identified. Lesotho is already mining formations of sandstone for the construction industry, and even exporting the produce to other countries in the region. The presence of fine-grained basalt and massive dolerites provide a good base for the dimension stone industry. Sporadic and small occurrences of a variety of semi-precious stones such as agate, chert, rock crystal amethyst, olivine zircon and chrome diopside are known to exist. There are also possible occurrences of base metals, precious metals and rare earth minerals. These deposits warrant a detailed geochemical exploration to confirm the viability and possible commercial exploitation. To that end, the Mining Policy commits Government to establish well-resourced geological survey agency that will carry out geological, geochemical and geophysical surveys of the country and regularly update the country’s geological databank.

References
1. https://www.gia.edu/gems-gemology/fall-2015-letseng-unique-diamond-proposition
2. The Minerals & Mining Policy 2015 – Ministry of Mining

Sekhametsi Investment Consortium Celebrates 20 years of building investments in Lesotho
Writes Manyathela Kheleli
Abstract: African proverbs have been credited with the adage that says; “If you want to go fast, go alone. If you want to go far, go together.” It is a loaded statement, but a fitting tribute to describe the journey of Sekhametsi Investment Consortium (SMIC), a 100% Basotho investment company that has defied all odds to grow steadily into a model investment powerhouse over the last two decades. From very humble beginnings back in 1999, Sekhametsi was founded by the pioneering efforts of Dr. Mphu Ramatlapeng, Nchafatso Sello, Malefane Monnapula, Palo Kotelo, Matjato Moteane, George Kou, Makhotso Molefe and the first cohort of 17 other members who bought into the idea of forming an investment consortium of its kind in Lesotho. Fast forward to 2020, Sekhametsi has hit the M1.2 billion mark in value, with interests in telecommunications, real estate, financial services and manufacturing.

It has long been the desire and vision for Lesotho to develop and grow its private sector as the main economic driver. It is therefore fitting to say the fruits are beginning to ripen, and indeed, a highly commendable and promising yield of very high quality fruits. The main catalyst behind the birth of Sekhametsi was the privatisation drive initiated by the government of Lesotho in the 1990s, where government embarked in a project to sell off its stake in many state-owned enterprises as part of the structural adjustment programme supported by the World Bank. Amongst others, the privatization drive was intended to phase out government subsidies and government control of commercial enterprises with the aim to broaden direct public participation in the economy. However, a lot of these enterprises were predominantly bought by foreign investors, as many Basotho were unable to raise capital to buy stakes in these companies. Sekhametsi therefore came into being in a spirited response for Basotho to be part of the economic transformation taking place at the time.

After cobbling together the initial group of about 30 local investors who raised the initial M3 Million, Sekhametsi was successful in its bid to purchase the government stake at Vodacom Lesotho. The consortium was successful in its bid for the initial 12%, then valued at M5.4 million. The bid also provided an option to increase the stake by another 8% for the selected winner to own a full 20% on offer over time. The Sekhametsi shareholder base at the time was composed of farmers, pensioners, corporate managers, religious groups, investment clubs and societies, who started the consortium at a share price valued at M34.00.

Sekhametsi’s founding director and coordinator, Mr. Matjato Moteane says the founding members drew the inspiration to mobilise the formation of a fully owned Basotho investment house out of their common passion to explore how Basotho can take a meaningful role to become active players in the economy. In the journey of building Sekhametsi, as we know it today, one of the major challenges was to confront and overcome the notion that for Basotho, working together as a collective does not work, especially where money and investments are involved.

The acquisition of the Vodacom stake was indeed a turning point in the fortunes of Sekhametsi that was to become a springboard for a bright future for SMIC. At the time, Vodacom was still a budding mobile network operator servicing about 19,000 subscribers. Today, Vodacom is a M5billion telecommunications giant with 1.6 million subscribers. Through solicitation and lobbying, Sekhametsi has grown over time, both in membership and size of investments. To date, SMIC has about 500 members and a portfolio of investments valued at M1.2 billion. A remarkable feat built through overcoming insurmountable challenges, a sound investment discipline, delayed gratification and solid governance.

The Vodacom stake is essentially what makes Sekhametsi Investment Consortium. Having grown from the initial 12% at inception and acquiring a further 8% in 2012 the 20% stake in the telecommunications company accounts for 72% of SMIC value. About 81% of the Sekhametsi’s revenues also come from the mobile operator. The stake also enabled Sekhametsi to acquire the chairmanship status in the Vodacom Lesotho board of directors, currently occupied by Mr. Leboela Lebete, who is also the current chairman of the consortium. In typical investment promotion trajectory, Sekhametsi also reviewed its growth strategy and diversification to cover the concentration risk on only one sector of the economy. Based on a prudent, but risk averse investment approach, the initial strategy was to consider minority stakes in other sectors of the economy to gradually grow and diversify its portfolio.

In 2010 the consortium ventured into the financial sector with a stake of 25% in Stanlib Lesotho, an asset management company currently holding a portfolio of about M4billion in assets under its wing. The shares were bought at a time when Stanlib was new into the country and had no local presence. Sekhametsi also has a stake in Letshego Financial Services, a micro financing institution that provides appropriate and accessible consumer microfinance and savings solutions to the financially under-served sections of the population.

Sekhametsi has also invested considerably in real estate, where the approach is to invest in high-value strategic commercial, industrial and mixed-use property acquisitions with attractive future growth potential and rental income. The company has acquired blue-chip tenants at its properties. The current portfolio of property is comprised of prime and iconic properties in the Maseru CBD. One such property is the Sekhametsi Place, formerly Agric Bank, the property was acquired in 2017 and is the headquarters of FNB Lesotho. Currently undergoing refurbishments in a staged approach, the property is billed to become a thirteen storey high-rise building that will be a prominent feature of Maseru city’s urban skyline.

Another property in Sekhametsi’s real estate portfolio is Vodacom Park housing the headquarters of its biggest investment. The three-storey 3 631 m2 building is a modern, green building design that features more than 25% electricity generation, solar screening and passive cooling system valued at M80 million. The building was constructed and handed over to Vodacom Lesotho in 2017.

The consortium also bought a significant stake in Moruo Property Development, where it is a major shareholder in a company that owns Pioneer Mall. The Mall has transformed the purchase experience of Basotho and opened up untapped revenue streams in the commercial property space.

In 2020, Sekhametsi ventured into uncharted territories with an investment in the textile sector. The consortium acquired a 30% stake valued at M10 million at Afri-Expo, one of Lesotho’s only two of the 40 textile factories in the country. The textile industry is central to Lesotho’s economy and remains the largest private sector employer with 45,000 workers. Afri-Expo is a cut, trim and make business that currently employs 600 workers with a monthly production of 10,000 units. The acquisition of Afri Expo bodes well with Sekhametsi’s growth strategy in a company that has massive potential to increase production and create jobs for Basotho.

Looking into the future, the consortium aspires to continue to create value for its stakeholders, largely through investing for dividend income and for capital appreciation (growth of share price). It is the intention of Sekhametsi to list on the Maseru Securities Market to widen investment opportunities for more Basotho to deepen its impact. Looking at the horizon, SMIC’s bold ambition to grow its market capitalization up to M5 billion by 2026 is attainable.
Sekhametsi is looking at further diversification into technology, financial services, manufacturing, pharmaceuticals and the agro industry. The consortium also envisions to increase its reach and focus on youth, where it has demonstrated appetite to offer as much as 20% of its shareholding to the youth, who are currently grappling with high unemployment, but with massive potential to become the game changers in Lesotho’s economy.

On the corporate responsibility front, Sekhametsi has also made commendable strides to uplift communities and raise the livelihoods of Basotho. At the outset, SMIC has committed to investing 1% of its profits into social responsibility projects geared towards youth development, women empowerment and for people with disabilities. To that end, the consortium established the Sekhametsi Development Trust as an independent social and corporate investment wing of SMIC. Amongst a sizeable number of initiatives that the Trust has implemented to date include an electric kiln for pottery projects at Morija Museum. The trust has also contributed in the establishment of Kick4life’s No.7 restaurant, a social enterprise that also trains youth on culinary skills. With the recent challenges brought about by the spread of the Covid-19 pandemic, Sekhametsi has assisted the nursing association and police with PPE.

Sekhametsi Development Trust has also set aside a M1million fund for youth ventures in the agricultural sector as a way to build youth entrepreneurship and also to address the challenges of food security in the country.

Looking back in the 20 years of building a shared vision for its members, Sekhametsi Investment Consortium has certainly triumphed against all odds to become what it is today. Currently reinventing itself for a better future and with an ambitious forecast to grow its market capitalization up to M5 billion by 2026, it is reasonable to conclude that SMIC is a torchbearer that carries the hopes of the Basotho nation. In particular, the Sekhametsi Investment Consortium model has demonstrated that Basotho are a capable society that can work together and build a common vision for the prosperity of their country. As the saying goes, unity is strength, Sekhametsi is a beacon to demonstrate the potential that awaits Basotho if they are willing to work together.

Inland Tax Collection Remains Resilient in the Wake of Covid-19
Writes Manyathela Kheleli

The 2020/21 fiscal year has been the most challenging for Lesotho’s economy and the world. Rocked by the devastating effects of Covid 19 and a recession never seen in recent history, it has been one of the most economically trialing period for Lesotho and the rest of the world. In fact, the International Monetary Fund estimates that the global economy shrunk by 4.4% in 2020. The IMF describes the decline as the worst since the Great Depression of the 1930s. Amid these circumstances, tax collection was always going to be a monumental task for the Lesotho Revenue Authority (LRA). When the Covid-19 pandemic hit, Lesotho introduced a series of hard lockdowns and restrictions of movement which affected commercial activity. The implications of these measures on tax policy led to the revision of the tax collection target from the initial M7,591 billion to M5.605 billion. The Authority also introduced measures to defer tax payment for both VAT and Income Tax to ease the burden, But the LRA however went on to collect M6,350 billion, surpassing the new target by M745 million.

When the governments’ fiscal year closed on 31st March, the Lesotho Revenue Authority also closed its ledgers for the collection of inland taxes, predominantly driven by Income Tax and Value Added Tax (VAT). In 2020/21 financial year, the LRA was compelled to revise its annual targets downwards with the overall reduction of 35% of expected revenue due to the devastating effects of the Covid 19 pandemic to the economy. A lot of strain was felt in the collection of VAT, which plummeted due to economic inactivity as most businesses were closed.

The revised target for VAT in 2020/21 was M2,331 billion for the year and the Authority was able to remit M2,608 billion, thereby exceeding the target by 12%. In the previous financial year, VAT collections totaled M2,906 billion, indicating a decline of M572 million in real terms, albeit in very tough economic times. About 72% of VAT collections were collected from the tertiary sector comprised of retail and services, whilst the primary sector made up of mining and agriculture contributed 22%. Manufacturing and construction contributed the remaining 6%.

Looking at the collection trends in the 2020/21 financial year, VAT collections contracted due to Covid-19 restrictions which affected the global supply chains, thereby negatively affecting domestic VAT collection. According to the LRA, monthly VAT collections averaged M200 million, which was below the M230 million average of collections in 2019/20 financial year. In particular, the effects of Covid were largely felt in May when the Authority collected only M42.6 million, thereby missing the target by 77%.

With regards to Income Tax, which is composed of tax types including Pay As You Earn (PAYE), Company Income Tax (CIT) and withholding taxes, collections were largely resilient for most of the year. For the year in review, the revised target for Income Tax was M3,274 billion, on which the LRA managed to collect M3,743 billion. This performance indicates that the Authority exceeded the target by M455 million, which represents a 14% increase above target. However, in real terms, Income Tax collections declined by M312.6 million compared to the M4,055.6 billion collected last year. The LRA did experience declining PAYE collections, mostly from the private sector as staff were either laid off or received lower salaries as a consequence of the Covid-19 pandemic. Reduced business activity also implied lower company tax, especially in the service sector which forms the backbone of Lesotho’s business landscape. This reduction was also evident in the collections of withholding taxes from government, who remains the biggest consumer of goods and services. Withholding taxes were 50% lower than 2019/20 financial year.

Granted that the overall collection target set for the LRA was relatively lower than the targets set in the previous years, overall, inland taxes combining both VAT and Income Tax amounted to M6,350 billion against a target of M5.605 billion. In the trying circumstances brought by Covid-19, the taxman registered a surplus in collections amounting to M745 million, which represents an increase of 13% to the fiscus, the largest gain not recorded in the past 10 years.

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In the coming financial year, it is hoped that the economy will gradually move towards regaining some considerable stability, as the pandemic gets to be controlled with vaccination and other prevention measures. The LRA is also set to make more collections with the increases in sin taxes (alcohol and tobacco levies at 15% and 30% respectively) as well as the 1% increase on VAT on electricity, which went up from 9% to 10% effective from 1st April, 2021.

Similar to most developing countries, the collection of inland revenues remains the most critical component that supports the government treasury especially in the wake of donor fatigue, dwindling Southern African Customs Union (SACU) receipts and declining foreign direct investment seen in recent history. The contribution of inland taxes to the national budget averages 39%, demonstrating the critical role played by the LRA in the collection of taxes to support the treasury.

Looking into the future of tax collection in Lesotho, the LRA envisages to also collect non-tax revenue going forward. The Authority also intends to digitize its tax collection services and reduce the costs of compliance for taxpayers. The current costs of collection are at an average of M0.4 cents per Loti, which the taxman hopes to reduce to M0.1 cent per Loti so that the difference goes directly to the fiscus. This new approach is articulated in the 2018-2023 Rea Aha – We Are Building Strategy – of the LRA, that also aspires to improve voluntary compliance and the quality of service to taxpayers.

According to GoBankingRates, which ranks countries based on tax revenue as a percentage of gross domestic product, Lesotho falls in the category of highly taxed countries, with the overall contribution of taxes to the country’s GDP standing at 31.57%. The country is in the same bracket with regional peers such as Namibia at 29.26% and South Africa at 26.45%. On the other hand, Madagascar has one of the smallest tax burdens in the world, where the net contribution of taxes to Madagascar’s GDP is only 10.52%. The United Arab Emirates tops the list as the most tax friendly country on earth, where tax revenues account for just 0.96% of the UAE economy. This is possible because of immense oil and gas revenues generated by the country to ease the tax burden.

‘This is not a Burial, it’s a Resurrection’: Another film that has gone to put Lesotho on the Map.
Lesotho Insights with additional reporting from the work of Michael Phillips and Zoe Ramushu

Shot in April 2019 at the village of Ha Dinizulu, some fifty kilometers out of Maseru into the foothills of the Maloti mountains. The film is rich in its depiction of Basotho way of life. It shows the splendor of beautiful scenery, the beautiful mountains and valleys of the Kingdom highlighted by the iconic Thabana Li Mmele mountain in central Lesotho. The film opens its storyline with a narrator who reveals to ‘Mantoa, the main actor that “Death has not forgotten you.” The film is tough thematically as well as technically. It is a story about the resilience of the human spirit, shot in the most trying of circumstances.
The storyline revolves around the grief of ‘Mantoa, who has learnt that her last remaining relative, her son, has died in a mining accident in the neighbouring South Africa. Frail, planning and desiring for her own death, ‘Mantoa is given the news that a dam is going to be built in her village. This big dam is going to submerge her village and wash away the graves of all her family and relatives that have died before her. The news become the turning point to ‘Mantoa. She reawakens from waiting for her death and raises a solitary uprising to defend the dead. The film showcases a conflict between the cultural norms and the value that the Basotho tradition bestows on the dead and development for the future in the dam that will benefit the community economically and otherwise. ‘Mantoa will not succumb to the thought of relocating the village nor the cemetery. ‘Mantoa is consoled by a priest who tells her to a place of “total surrender, where faith, courage and will becomes obsolete.”
This film juxtaposes existential questions about the way of life of generations of grandmothers in their lyrical, unhurried and unbothered life that is now being tested by the fast-paced world and all its troubles. The film also explores the universally poignant question that rings ever more urgent on “where is God in all this?” A movie critic and writer, Zoe Ramushu perfectly summarises the plot when she says that: “The tension between Western religion and African traditional beliefs sits comfortably beside patriarchy, colonialism and the struggle between rural and urban life.” In the film, ‘Mantoa’s petite frame is often seen but never heard, which leads us to believe the vow of silence that ‘Mantoa has taken to avoid spewing her bitterness at life and at God. But when she speaks against the project, she becomes a force of nature, relentless, unapologetic and unyielding. She struggles to make sense of her tragedies, and the sacrifices that she has to make, which shake the foundations of her religion.

The brains behind this film, Jeremiah Mosese says what inspired the film was his recollection or Nelson Mandela’s visit to Lesotho in 1995 to ‘…inherit the deal made by the South African apartheid regime and Lesotho’s military junta that put together the Lesotho Highlands Water Project. He adds that one of the villages that were resettled by the construction of the dams was his grandmother’s village. The storyline, though largely fictitious and mostly dramatic, questions the water project and what it has done to affect the foundations of the Basotho culture, especially on death. “I am personally not for or against progress. I am more interested in interrogating the psychological, spiritual and social elements that come with it.” Mosese says. . In the film, Jeremiah brings up a debate on how developmental projects can at times affect the social fabric of life. Through the character of ‘Mantoa, the film advocates for resilience and for society to challenge what is happening in their lives. The filmmaker says the film was also inspired by the work of the late Senegalese filmmaker, Djibril Diop Mambety from his film, ‘Hyenas’.

Tourism in Lesotho Poised for Rebound in the Wake of Covid-19
Writes Manyathela Kheleli
Of all industries that were seriously challenged by the devastating effects of Covid-19, Tourism was the hardest hit, especially in Lesotho, where there is not much industrialization. A bulk of the country’s economy is heavily reliant on the services sector, where travel and tourism directly account for over 7% of the country’s GDP—a large share relative to the rest of the world. It is not surprising therefore that the National Strategic Development II 2018/19-2022/23 has identified tourism as a game changer for Lesotho’s economy. If Lesotho is successful, the Millennium Challenge Compact II has also prioritised tourism as a sector that is going to benefit from the project. In the year under review, the Government of Lesotho will join the rest of the world to introduce the Tourism Levy, which is critical to the collection of revenue that can be reinvested in the growth of the industry.
To keep the industry afloat, domestic tourism became the only ace keeping the industry afloat, and most accommodation establishments we turned into temporary isolation centres in the fight against the pandemic.

The Ministry of Tourism, Environment and Culture was yet to conduct a baseline study to understand the impact of the Covid-19 pandemic on the tourism industry, tourism has been severely hit because of the restrictions on cross border movements since April 2020. International tourism came to a complete stop. A majority of local tourism establishments, tour operators, travel agencies and the entertainment sectors came to a complete halt resulting in job losses and mounting stress for artists and other sector players. These challenges have forced players to rethink and review their strategies for the sector, particularly on risk management, preparedness and response techniques at times of disaster.

So far, Government, through the Private Sector Competitiveness and Economic Diversification Project (PSCEDP), distributed relief packages to registered and qualifying tourist business and creative industries. The beneficiaries included hotels and bed and breakfast establishments, crafters, tour operators, musicians and related industries. Payment holidays were also provided for operators using government owned premises.
On the flip side, when the restrictions were eased, some players took advantage to promote domestic tourism, which has been a sleeping giant in the growth of tourism in Lesotho. Out of necessity, most establishments provided reduced packages for local enthusiasts to visit their country. The sector saw an increase in packaged hiking expeditions to various destinations across the country. Off road trips in groups and individuals also increased as Basotho embraced opportunities to get out of their houses immediately after the lockdowns.
Going forward, the Government, through the Ministry of Tourism, Environment and Culture (MTEC) is engaging with the United Nations World Tourism Association (UNWTO) to explore alternative measures to avert a further loss of business in the sector. UNWTO has pledged to assist the Government of Lesotho to undertake a baseline study to establish the impact of Covid-19 on the industry. This study will inform the revised tourism strategy and map the way forward in the recovery and future growth of the industry. The African Development Bank (AfDB) have also pledged support to revitalize and boost the tourism businesses on the African continent, where Lesotho also stands to benefit.
According to the Ministry, one of the key priorities in the proposed strategy is to reposition Lesotho as a preferred tourist destination of choice. There are also efforts to re-establish the Lesotho Council of Tourism, which will enhance the collaboration between government and the private sector.
Tourism Levy
In the year 2021/22 Financial year, Lesotho will for the first time introduce the Tourism Levy established under the Tourism Act of 2002, as amended in 2006. The regulations of the levy are in advanced stages for promulgation in parliament. The levy is seen as a vital catalyst for the sector to make a more meaningful contribution to economic growth. In particular, the tourism levy will augment income that would assist the Ministry to among others, improve tourism signage, support the marketing and promotion of Lesotho’s tourism destinations, build capacity of tourism enterprises and also invest in the training of tour business frontliners. It is envisaged that the collection and administration of the Tourism Levy will be vested with the Lesotho Tourism Development Corporation (LTDC). Tourism levy rates are yet to be finalized when regulations are officially published, but they will be collected from the collection points below;
– accommodation facilities rate per room
– border entry points rate per loaded/ towed sports, vehicle, motorbike, leisure boat
– travel and tour operators rate per centum of ticket sale
– attraction sites rate per entry
– events and concerts rated annual fee

Visa Openness
The extent to which African countries open their borders for foreign visitors is measured by the African Visa Openness Index published by the African Union in collaboration with African Development Bank. The latest rankings published in December 2020 indicate that Lesotho is ranked number 35 out of the 54 African countries surveyed with a score of 0.302. Lesotho ranks a notch lower than Botswana, eSwatini and South Africa who all rank 32 with a score of 0.301. This is a low ranking compared to highly ranked countries such as Seychelles, Benin and The Gambia, which do not require a visa for foreign visitors with a score of 1.0. Lesotho can significantly improve its rating by introducing eVisas or alternatively, improve access to visas for visitors on arrival.

ACCOMMODATION
Lesotho boasts a variety of accommodation offers from which visitors can choose from, ranging from classy five star-graded establishments that offer conferencing and casino facilities to those that offer simple bed and break-fast.
Accommodation in the country ranges between established hotels, bed & breakfasts, lodges and guest houses, self-catering cottages and chalets, backpackers, and hostels as well as the fast growing camping facilities.

TOURISM DEVELOPMENT PROJECTS
Multiple tourism sites across the country were identified for tourism development and those include the Letša-la-Letsie, Semonkong, and Sani Top. Master plans were developed, and four potential sites were developed as visitor centres, those include; Morifi, Thaba-Tseka, Monontša, and Marakabei.
With trade as an important aspect of tourism, the Tourism Ministry developed market outlets for local tourism product value chains. There was a further 11 tour excursionists based in Maseru, as well as 16 tour guides based at Ha Kome, Malimong, Thaba-Bosiu, and Ha-Baroana.
The Country has further brokered linkages with South African tour operators in Clarence, Vaal, Underberg and Bloemfontein, where trained 20 crafters and 89 rural homestay owners from eight communities continue to reap the benefits of these interventions
The country implemented the Lesotho’s Quality Star Grading System to help improve quality and standardize the grading of facilities in the country. The system is currently under review for additional modifications according to the Lesotho Tourism Development Corporation.
The system is managed by the Grading Council, which is a division of the LTDC, that was established with support funding from the World Bank and enjoys standards consistent with the RETOSA (Regional Tourism Organisation of Southern Africa) harmonised standards.
The star grading system is an internationally recognised method of classifying the quality of any accommodation facility based on a one to five star rating. This is one of the first such programmes in the region to integrate grading standards that reflect both the overall quality of the lodging facility as well as its environmental impact and suitability for guests with disabilities.
The emphasis is put on features such as room size, furniture and linen, structural soundness, cleanliness, cuisine, bathroom facilities, service and reception facilities. The process is benchmarked on the experiences of Botswana and South Africa, and now Lesotho is a party to the development. The country continues to develop the Lesotho Tourism Positioning and Communication Strategies, as well as the Lesotho tourism brand; the brand has been introduced through activities including the engagement of a public relations agency to raise awareness of Lesotho as a destination in the South African market, and promotion of tourism events such as the Lesotho Sky, Afri-Ski, King’s Cup, Lesotho Tourism Festival, and other festivals.
In 2013 the Sehlaba-Thebe National Park was listed as a World Heritage Site, 65 other heritage sites were documented. As a strategy to protect, conserve, and manage cultural heritage resources, Lesotho began the construction of the National Museum and Art Gallery in 2015. Construction was badly affected by Covid-19 and final touches are currently being put on the finished structure for opening in the current financial year.

SPORTS TOURISM
According to the NSDP II, sport tourism is increasingly recognised as a tool for development at an international level and is a great opportunity for the tourism sector. It can support development by generating income from sports-related sales and services, supporting business growth, entrepreneurship and job-creation in the tourism sector, as well as the improvement of health and social well-being, and fostering universal values of fair play, mutual respect, and friendship across cultures
“Staging sporting events, whether at grassroots, national, or international levels, can enrich the social and cultural fabric of communities, making them more attractive locations for investors and tourists,” Lesotho government indicates.
Lesotho has also drafted a sport and recreation policy to guide sporting activities, leveraging relationships with international organisations and bilateral partnerships. The country has also received financial and technical support for capacity building in sports. The country already participates in Commonwealth Games, Olympic Games, and Paralympic Games.
Lesotho also provides opportunities for water sport, such as rowing, and existing assets are in place at the Mohale Dam, Katse Dam, and Metolong Dam.
Tourism reports have described Lesotho’s topography as ideal for all manner of high-altitude adventure sports, and the mountainous highlands pose an exhilarating challenge for climbers, hikers and bikers against the backdrop of a pristine and scenic natural environment.
There are cycling, motor biking and quad biking adventures, as well as 4×4 trails in the highlands, with off-road driving offering many challenging routes through breath-taking mountain scenery.

Cycle tourism is the fastest-growing sporting tourism sector in the world and Lesotho possesses enormous potential in this regard. This is attributed to the country’s many different mountain biking trails which follow dramatic routes throughout the highlands.
Under the stewardship of the Lesotho Sky Mountain Bike Race, enthusiasts of mountain biking in Africa have something to look forward to covering more than 350 kilometres of raw, natural mountain trails over six day, the race takes riders to the edge of MTB Nirvana. This international event was launched in 2011 with only 22 riders, and has since grown into one of Africa’s most spectacular and toughest stage races, bringing together top athletes from across the globe.
The Lesotho Sky Race takes place in September and has been recognised by the International Cycling Union (UCI) since 2013, and hosts both professional and amateur teams. In 2015, the race was awarded an upgrade from a C2 to a C1 event, allowing UCI riders to earn more points and also earn more prize money.
The Mountain Kingdom also plays host to the Kingdom Enduro, which takes around March 22 and 24.The three-day enduro mountain bike stage race, through a network of mountain trails, developed by route director Réné Damseaux and his trail building team runs in a three to five stages per day.
In 2018, the Kingdom Enduro was added to the list of 50 Enduro events from 24 countries and 4 continents around the globe as an official EWS qualifier. The team behind the Lesotho Sky and Kingdom Enduro – Sky Events (Pty) Ltd – also offers guided mountain bike tours.

Biodiversity Status:
Flora: Relative to its size, Lesotho is deemed incredibly rich in natural and cultural diversity and has unique habitats and high levels of endemism, estimated at 30% It is estimated that Lesotho has at least 54 endemic plant species including, Aloe polyphylla, Euryopsinops, Aponogetonranunculiflorus (Sehlaba-Thebe water lily, lijo tsa lihohoana) and Gnidiasingularis (Moomang).
Most of these endemic species are confined to the globally recognised biodiversity hotspot in the Southern African Mountains, referred to as the Drakensberg Alpine Centre (DAC) which Lesotho accounts for about 70% of the DAC.
Fauna: Lesotho’s fauna, particularly birds, has been more documented than flora. This may explain why major conservation efforts have focused specifically on birds such as Geronticuscalvus (Southern bald Ibis, Mokhotlo) and Gypaetusbarbatus (Bearded Vulture, Ntsu kobo-kobo).
It is estimated that Lesotho has a number of endemic mammal species including, Otomyssloggetti (Ice Rat) and Mystromysalbicaudatus (white-tailed mouse) (MDTP, 2007; Pomela et al., 2000), however, recent monitoring reports in the Mohale and Katse dam catchments documented a significant decline in the number of groups and group sizes of species of carnivores, antelopes, hare or rock rabbits and small mammals.
Thirteen of the 340 recorded bird species housed in Lesotho are Red Data listed by the Department of Environment’s 2014 report. There are 14 recorded fish species, with Pseudobarbusquathlambae (the Maloti Minnow) being the only endemic fish species found at Sehlabathebe.
“The three indigenous species; Labeobarbusaeneus (smallmouth yellow fish), Labeocapensis(the Orange River mudfish) and Austroglanissclateri (the rock catfish) and two non-native species Oncorhynchusmykiss (Rainbow trout and Salmotrutta (the brown trout) were introduced well before the construction of the dam,” LHDA reports recorded.

PLACES TO VISIT AND ACTIVITIES: ( http://www.travellesotho.com) :
HA KOME CAVES: The awesome Ha Kome cave houses of Lesotho’s Berea District are surely one of the most striking wonders in the country.
Carved directly from the rock faces of the surrounding mountains, they can be found hiding between the valleys close to the village of Mateka.
A truly earthy and interesting look at traditional family living in this part of Africa, the structures are still inhabited by the descendants of those who built them almost 200 years ago.
A visit to the caves is guaranteed to introduce you to the cave dwellers and take a tour of the on-site Ha Kome Visitors Centre, which unravels the heritage of these curious highland settlements. The Kome Cave dwellings built in the 19th century are still habited by the original families. The caves have been carefully restored and a visitors’ centre has been attached to the site. They have been declared a National heritage site.
Activities at Kome: Cave dwelling Expeditions, Pony trekking, Bushman Paintings sighting.

KATSE DAM AND MOHALE DAM: Katse dam is second in size (in Africa) only to the Lake Volta Akosombo Dam in Ghana. The view of this massive dam from Mafika Lisiu Pass is magnificent and is often of great interest to visitors. The centrepiece of the whole project is the dam wall which is the highest in Africa.
Activities at Katse Dam: Boating, Pony trekking, Hiking, Katse Dam information Centre, Scenic mountain views.
MOHALE DAM supports the Katse Dam with water flow and maintains the level. A very large rock-fill dam, located on the Senqunyane River. Mohale offers a variety of activities such as boat cruise, pony trekking and hiking.
Activities at Mohale: Boat cruise, Pony trekking, Hiking, Dam Scenery, Rock Paintings.
SEMONKONG: Nestled between the dusty escarpments of the Maseru District, close to the geographical heart of Lesotho as a whole, the little conglomeration of bamboo-topped thatch villages and huts that is one encounters is Semonkong. It might not look like one of the most-visited spots in the country; but it is.
That honour surely has to go to the mist-producing plume of the great Maletsunyane Falls, which can be found roaring over the edge of a table-top mountain nearby. Thousands of visitors come to wonder at this great natural creation, to scale the mountain paths in its presence and see the ice-caked plunge pools into which it descends.
MALEALEA : Malealea, regarded as one of the top destinations in Lesotho, is a perfect one stop destination for a relaxing and adventurous holiday. A local band, using their homemade instruments, entertains guests in the evenings.
Malealea is a perfect base to enter Lesotho before travelling to various routes across the country. For visitors wishing to escape the hustle and bustle of town life Malealea is the ideal place, situated in a remote and rural village, where a tourist can experience peace and serenity – a real time to unwind.
Malealea customize trips to suit the requirements of a traveller. A visitor can be taken to really remote areas, either camping in Basotho villages. Come and Explore Malealea with an overnight pony treks, hiking, mountain biking, village walks range from 1 hour to 6 days or longer, where one can overnight en-route in Basotho villages. No visit to Lesotho would be complete without pony trekking. It is the transport of choice for most Basotho as the sturdy ponies handle the narrow trails better than any 4×4 can.
Lesotho is a world without fences, breath-taking scenery proliferates and every season has unique attractions.
SANI PASS: The road drops from there down the torturous menders of the Sani Pass as it descends from the mountain plateau down the Drakensberg Mountains and into the South African province of Kwa-Zulu Natal. The Sani Pass was originally a bridle trail for pack animals and was opened up for vehicle transport in the 1950’s. The Sani Pass is the gateway to Lesotho’s Roof of Africa circuit that links the spectacular scenery of the Drakensberg with the attractions of Northern Lesotho, as well as South Africa’s Golden Gate National Park via Caledonspoort or the Monontša Pass.
THABA BOSIU MOUNTAIN: The name Thaba-Bosiu means the ‘Mountain at Night’. It was in July,1824 when Moshoeshoe and his people took occupation of the mountain which his brother Mohale had reconnoitred.
He named the mountain Thaba-Bosiu – Mountain at Night because he and his people arrived there in the evening and the essential protective work took him until late at night. Many years later the news to intimidate his enemies was spread that at night time the mountain grew larger than usual. This is where the Basotho nation was built. The fortress has eight springs and seven passes, the main one being Khubelu. Thaba-Bosiu was never conquered by his invaders.
The mountain is flat-topped and it is situated in the valley of the Phuthiatsana River. It is about 25 kilometers east of the junction of this river with Mohokare or Caledon that divides Lesotho from the Free State. It rises about 106m from the surrounding valley and its summit is surrounded by a belt of perpendicular cliffs some 12m high on average.
SEHLABATHEBE NATIONAL PARK: Situated at the heart of Qacha’s Nek, the paradise on the tops of the Maloti Mountains, Sehlabathebe National Park occupies around 68 square kilometres on the very roof of Lesotho.
It’s actually joined at the hip with the Maloti-Drakensberg Park, the National Park across the border in South Africa, and boasts the same breath-taking vistas of rolling highland savannah, wild flower meadows and verdant valleys overlooked by craggy faces of primeval stone.
Intrepid travellers flock here to ride across the plateaus on horseback, encounter semi-nomadic tribal peoples, and embark on some of the most beautiful trekking trails in the entire Qacha’s Nek region. This is one of the designated national parks in Lesotho. It comprises 6500 hectares at an average elevation of 2400m. The park conserves an area of high mountain plateau bordering on South Africa. The area is full of wonderful rock formations, huge rock overhangs and many small lakes. The park is both important and extremely interesting to those who enjoy bird watching or alpine flora. There are some hardy mountain bucks to be seen, as well as small mammals, a wealth of birdlife, and a diverse Cape alpine flora. Of particular interest is a small minnow-like fish (Oreodaimonquathlambae) that was thought to be extinct, but has been rediscovered in the upper reaches of the Tsoelikana River.
Activities at Sehlabathebe: Birdlife, Wildlife, Fauna and Flora, Pony trekking, Rock shelters and Hiking
BOKONG NATURE RESERVE: Comprises of 1970 ha and straddles the northern access road at the top of the Mafika Lisiu Pass between Pitseng and Ha Lejone, on the way to Katse Dam. At more than 3000 meters above sea level, the reserve is one of the highest nature reserves in Africa. The reserve contains extensive afro-alpine wetlands in the sources of the Bokong river and the Lepaqoa stream as well as vast grasslands. Bokong offers an excellent opportunity to view the bearded vulture and a number of other bird species endemic to the afro-alpine zone.
TŠEHLANYANE NATIONAL PARK; highlighting the game camp found within the North-Western section of the park. Tšehlanyane NP is 5392ha in total with an area of approximately 426ha fenced with standard 1.4m game fencing. The current herd of eland are therefore found within the 426ha game camp.. Due to the small area of grazing land within the perimeter fence, fighting between territorial bulls is common as the population grows. Displaced bulls may break out of the perimeter fence and become a threat to both human life and farming communities surrounding TNP.
AFRISKI MOUNTAIN RESORT is a year-round mountain sports and relaxation destination that caters to every taste, from the active to the indulgent. Afriski’s cutting-edge snowmaking technology gives Nature a helping hand it needs to offer skiing and snowboarding throughout the winter season. The authentic alpine ski lodge and world-class facilities combine with warm African hospitality to create a superb snow sports destination.
Families are especially well catered for at Afriski. Equipment hire, skiing lessons and the Pudi children’s club ensures that young and novice snow enthusiasts can improve their skills and increase their confidence in a fun, safe and supportive environment.
The facilities at Afriski mean that visitors can make the most of Lesotho’s dramatic landscapes and breath-taking scenery throughout the year. Afriski is truly a destination for all seasons: The melting snow reveals an inviting network of trails just waiting to be explored. Mountain bikers and trail runners can enjoy the thrill of improving their technical skills as they get fitter at altitude, while hiking, bird watching and fishing are among the more leisurely options.
Afriski’s all-year, all-mountain offering is on par with European and North American resorts – without the need to get on a plane. The range of accommodation options means that – just like on the slopes – there is something for everyone. Superior mountain chalets deliver a luxury experience, while backpacker-style accommodation makes the mountains even more accessible.

THE STATE OF ROADS AND TRANSPORT INFRASTRUCTURE IN LESOTHO

As an enclave completely surrounded by its neighbour, South Africa, Lesotho’s main mode of transport is roads. Building roads infrastructure is a notoriously costly exercise in a country whose terrain is predominantly mountainous. Three quarters of the country is mountainous, in fact, Lesotho is the highest country on earth with the lowest point at 1400 above sea level. The rugged terrain therefore implies that expensive engineering, heavy plant and machinery as well as blasting gobble a significant budget and render road building in Lesotho very expensive. The high costs of building roads in Lesotho is largely blamed for the inadequate road infrastructure, which also explains other socio economic challenges including, but not limited to access to health, education and low economic development and participation, especially for rural communities. It is a common sight to see Basotho ferrying corpses and coffins on horseback.

Lesotho’s road network consists of arterial, urban and rural access roads. Arterial roads connect the districts with one another; others connect border posts with the main road network and traverse through several community councils’ areas within the districts. The total road network in Lesotho makes 9,200 km made up of 1942 km of paved roads, 5773 gravel roads with the balance being earth roads.

Urban roads are within the jurisdiction of urban community councils while the rural access roads traverse the local community councils’ areas. In line with the Lesotho road sector and decentralization policies, arterial roads and rural roads which traverse through two or more community councils’ areas are under the responsibility of the Central Government, while the urban and rural access roads that provide access limited to the particular councils’ areas are under the custody of local authorities. However, the Roads Directorate, under the Ministry of Public Works is responsible for formulation of National Road Sector Policies and Standards, with which every road agency or community council must comply. The road transport sector has been developing since the country’s independence in 1966 and has currently extended even into the remotest areas of the country.
Its development has been greatly influenced by the extension of road networks across the whole country through government initiatives and the Lesotho Highlands Water Project (LHWP).
Prior to independence, the only paved road in the country was the Kingsway in the capital, Maseru.
To date, road construction continues to dominate government programmes and claims significant budget allocations each year. The construction of the 92-kilometre road from Ha Mpiti to Sehlabathebe is currently one of the major roads infrastructure projects currently in progress. The M1.8 billion project has created over 500 jobs, The Export-Import (EXIM) Bank of China provided a concessional loan of M1.3 billion to fund the project. Lesotho further injected M500 million to consolidate the total cost of the road construction.
When the project is completed, it will become a seven-meter-wide double-lane road, shortening the driving time from Mpiti to Sehlabathebe from four hours to between an hour.
Other major roads currently under construction are those that form part of Phase II of the Lesotho Highlands Water Project that will culminate in the construction of Polihali Dam in Mokhotlong. Apart from the 16 km road from Mapholaneng to the Polihali Dam site, two major roads are under construction.
The Northern Access Road (NAR) will be repaired and resealed with minor safety upgrades. The section that will be rehabilitated stretches for 98km from the Pitseng town up to the Malibamatšo River just below the Katse Dam wall. It provides access to the Katse Dam basin between Leribe and Katse village. The NAR will tie into the PWAR at Ha Seshote and will provide a further link to the Polihali basin.
The project will also build three major bridges along the Maseru to Mokhotlong A1 road. One bridge will be at Mabunyane River and the other at Khubelu. The biggest bridge will be at the Senqu River and will be approximately 580m long and 110m high.
A significantly high proportion of major roads have been built with the support of development partners or by way of loans and grants. With the establishment of the Road Fund in 1995, Lesotho has developed in-country mechanisms to finance further development and maintenance of existing roads.
The main reason for establishing the fund was to shift the burden of financing maintenance of Lesotho’s road infrastructure from general taxes collected by the central fiscus to road user fees, and to close the persistent financing gaps that characterized road maintenance prior to the establishment of the Fund. Roads in Lesotho are used on a fee-for-service basis, where road users pay commensurate fees for their use in order to ensure that they are maintained and developed on a sustainable basis.
In fulfilling its mandate, the Road Fund collects revenue from road toll-gate fees; all cross border fees and levies; license fees on motor vehicles; short term permits and special permits for motor vehicles and any other road user charges including fines on road traffic offences.
The fund finances routine and periodic maintenance of all roads in Lesotho; road rehabilitation, road upgrading, new road works and road safety projects and any other project or matters connected with roads.
It also finances, on the cost share basis, urban community roads and rural community roads.
In the financial year 2019/20, the Road Fund collected total revenue amounting to M174, 180,590 as at 31st March, 2020. This collection represents an increase of M5,million (3.03%) from M 169 million collected for the same period up to 31 March 2019. Road Maintenance Levy (RML) remained the largest stream contributing 45.1% of the total revenue collected, followed by Toll Gate Fees with 39.5%. Motor Vehicle Licenses and Permits contributed 15.1% while Fines on Road Traffic Offences contributed 0.3%.

In the year of reporting, the fund also allocated M266.7 million towards roads rehabilitation and maintenance. These funds are allocated to implementing agencies which include the Roads Directorate, Maseru City Council (MCC) and the Ministry of Road Safety. The Department of Road Safety also benefits from the fund for purposes of education and awareness about road safety. A significant chunk of the allocation is traditionally allocated to the Roads Directorate and MCC. In the 2019/20 financial year, Roads Directorate was allocated M123.7 million, whilst MCC received M109 million.
Air Transport
The regulation and promotion of civil aviation, development of infrastructure and licensing of air transport operators is under the jurisdiction of the Department of Civil Aviation in the Ministry of Public Works and Transport.
Lesotho has scheduled international air transport service between Maseru and Johannesburg with no scheduled domestic air service. From Johannesburg, there are connecting flights to a range of international destinations. Moshoeshoe I International Airport is located in the town of Mazenod, 18 km southeast of downtown capital Maseru.
The country also has 24 airstrips providing secondary and in some cases primary access to a number of the country’s most isolated rural areas through smaller private aircrafts. These aircrafts are operated by Mission Aviation fellowship, commonly known as flying doctor’s service. Another local player introduced in 2020 with an intention to revitalise domestic air service is Mohahlaula Airlines. The company currently operates a Cessna 208 Caravan seating 12 passengers for destinations including Thaba Tseka, Mokhotlong and Qacha’s Nek. They also fly cargo and provide pre-arranged air tours.
The Ministry of Public Works and Transport has indicated that the government of Lesotho plans to improve Moshoeshoe I Airport. Part of the planned improvements include the rehabilitation of the runway and the terminal building at an estimated cost of M500 million. In the year of reporting, the airport has installed two state of the art x-ray machines and metal detectors to enhance airport security. The airport also increased its fleet of fire engines with the purchase of a 14 ton water capacity fire truck valued at M13 million. These developments form part of the compliance requirements for the airport to maintain airport safety standards prescribed by the International Civil Aviation Organisation’s requirements, which governs the certification of airports.
Rail Transport
Rail transport is almost non-existent in Lesotho. There is only a railhead of about 2.5 kilometers with some industrial sidings linked to the Maseru Station rail yard.
Two freight trains run every day, carrying mainly cement, maize, fuel, and freight containers, making up about one-third of Lesotho’s international trade in bulk goods.

WAMMP EMPOWERS WOMEN AND YOUTH BY REVIVING COTTAGE INDUSTRIES
Writes Lawrence Keketso

Wool and mohair production in Lesotho began in the 1850s, barely 20 years after the founding of the Basotho nation by King Moshoeshoe I. Basotho acquired wool Merino sheep through labour migration and employment in South African farms. By the end of the 19th century, almost all of the sheep and goat flock had been transformed from traditional meat producing varieties to the exotic Merino sheep and Angora goats breed. Today, Lesotho is the world’s second largest producer of mohair, while also highly regarded amongst top wool producers, thereby contributing millions into the economy. The secondary industry in the wool and mohair value chain has been cottage industries, where Lesotho is also famous for woven tapestries of unparalleled quality. The cottage industry was almost on its knees, but thanks to the Wool and Mohair Promotion Project (WAMPP), there is now a glimmer of hope where rural women and youth stand to gain…

Lesotho’s wool and mohair production has been listed amongst the world’s top quality produce, though small in actual produce volumes and the economic returns in comparison to other top world producers.
Dating back almost two centuries, wool production in Lesotho has remained one of the mainstays of Lesotho’s GDP growth, while also being the highest earner of livehoods for the rural communities, especially in the mountain rural areas of the country. Many studies carried out since the Kingdom of Lesotho gained independence in 1966 have always made reference to a gap in the growth of the wool and mohair industry in the country.
It is not a surprise that since the introduction of the merino sheep and angora goats in the country, there has always been a deliberate goal to introduce and plant a firm seed of growth from within the wool and mohair industry in Lesotho. It is thus very fitting to say, the introduction of the Wool and Mohair Promotion Project (WAMPP), some more than five years ago was a fitting gesture, not only for improved and high quality wool and mohair produce, but also coming in to fill the gap that has always been the missing piece in Lesotho’s industrialisation journey.
The emergence, growth and highlights of the cottage industries in Lesotho, as well as their near collapse, has always been on the radar of many enthusiasts, but for WAMPP, it has always been a diagnosis and trace journey that called for urgent remedial attention and positive restoration. Cottage industries are relatively smaller businesses developed out of the by-products of wool and mohair, where Basotho women make various products of wool and mohair for sale. Such include hand spun mohair rugs, wall hangings, scarves, handbags and other ornamental items.
As one of its main objectives, WAMPP seeks to maximise economic benefits for the smallholder wool and mohair farmers for sustainable livelihoods, while also opening up a diverse market for the local producers and cottage industries.
It is from this very objective that WAMPP saw the need to revitalise and promote these small but economically beneficial industries to Basotho. Women and youth are primary beneficiaries targeted in this sector and have been identified as the main drivers in this section of the project.
There have been many challenges in the past and many of the crafts centres that started mainly in the 1970’s and even well before then, were beginning to face challenges regarding access to raw materials, whist on the other hand, the market demand was always on upward spiral.
“It was therefore a defeating challenge that Basotho produce wool and mohair but the local cottage industries cannot access the raw or semi-processed materials needed for their tapestries and other weaving works,” WAMPP noted in one of its studies for policy implementation recently.
It was therefore one of the priority task by the project to establish a supply chain of raw fibre (wool and mohair) for cottage industry groups.
“Historically, these groups struggled to secure fibre from Lesotho producers – due to a lack of an intentional relationship. As such, these groups primarily sourced fibre (especially semi-processed wool known as wool top) from South Africa. This had an obvious negative effect on production costs, but also the ease of accessing quality material. The project plans to start off by procuring locally-produced fibre for some groups, but ultimately to broker a long-term supply relationship with shearing sheds,” WAMPP has said in its recent report.
The zenith of this development has been the establishment of a small processing centre at TY – which will also act as a business incubation centre, in partnership with BEDCO. It is from this facility that washing, carding, dyeing of wool will be done – thus improving access to yarn, wooltop and perhaps establishing a production outlet and market for yarn.
WAMPP has therefore found the missing gap and has linked the raw wool and mohair producers with the cottage industries as a starting point to ensure the sustainability and growth of the cottage industries. It is also part of the implementation strategy to improve access to the markets, especially off-shore, as a way of maximising benefits to the local industries. This also means great economic benefits and job creation for women and youth of Lesotho, especially those in the rural and semi-rural areas of the country.
WAMPP has already made striking strides in ensuring that not only the projects are resuscitated but are in fact running sustainably.
There are already beneficiaries of trainings of Youth cottage industry groups country-wide on product development (design) and business management with more than 200 youth, mainly women having received the training. WAMPP also encourages trainees to formalise their groups into cooperatives, associations and other formations in order to benefit from economies of scale.
In further cementing the reorganizing and commercializing of the cottage industry by focusing on capacity-building in design, production and marketing, the groups are also trained specifically in social media – digital marketing, in line with inculcating an international market focus.

Taking a step further, the project is working with tertiary institutions, such as the Limkokwing University of Creative Technology (LUCT), thus far to forge alliances between learning institutions and cottage industry groups. The aim is to pave way for internships such that there is cross-pollination of ideas between the ‘old guard’ and ‘new school’.
Ultimately, WAMPP encourages cottage industry groups to produce for both thedomestic and international markets. In this regard, a market development consultancy was contracted to, among others explore an international market outlet for Basotho products. Currently, some Basotho artists already work as aggregators linking Basotho artisans with US markets. The project is working to explore this further with an organization called Aid for Artisans.
Looking ahead and beyond the project life, Lesotho has a vast pool of resources to tap from in the economic advancement of its people. According to WAMPP, there is no better way to start than to ensure that the bleating sounds of our flocks continue to fill the valleys and foothills of Lesotho’s majestic rangelands. It is therefore incumbent upon Basotho to improve their livestock breeds in order to maximise production, whilst at the same time, maximising value by adding cottage industries into their value chain to reap better rewards, where Basotho herdsmen, women and youth benefit simultaneously.

About WAMPP

The goal of WAMPP is to boost the economic and climate resilience of poor, smallholder wool and mohair producers to adverse effects of climate change in the Mountain and Foothill Regions of Lesotho. The development objective of WAMPP is to enable smallholder livestock producers to generate higher incomes and more sustainable livelihoods through three main project components of:
1. Climate Smart Rangeland Management (CSRM)
Climate Smart Rangeland Management is designed to establish a sustainable system of communal grazing and rangeland management with the objective of improving livestock nutrition and maximizing production and returns for smallholder wool and mohair producers.

WAMPP takes a community based approach to delineate grazing areas, establishstocking rates and developing grazing plans, following a participatory rangeland management methodology. This process is led by an NGO or CBO experienced in community development and natural resource management. It is followed by the registration of the usufruct rights to the land and the regulations to be applied to its use. By reducing the speed and quantity of run-off from the rangeland, CSRM is intended to reduce gully erosion that has been a major contributor to the loss of agricultural land in recent decades.

2. Improved Livestock Production and Management:
This component is designed to increase the quantity and quality of wool and mohair produced by smallholder farmers in Lesotho. This is in realization that yields from sheep and goats in Lesotho are low due topoor nutrition,lack ofaccess to improved genetic material,poor animal health and inadequate access to veterinary drugs and vaccines and the limited capacity of the livestock extension services. The gains from this component of the project is intended to translate into improved animal nutrition, breeding, and health with the aim of raising production standards and maximizing returns for smallholder producers. The increased returns from wool, mohair and increased animal sales will also contribute to improve food security within herding communities.

– 3. Wool and Mohair Processing and Marketing:
– This component is designed to support the capacity of women and men livestock owners to adopt a more commercial approach to improving market returns through more effective and efficient handling of wool and mohair to improve the quality of Lesotho wool and mohair thereby raising returns for livestock producers.

Interventions supported by WAMPP include:
a) promoting shearing shed association enterprise development;
b) strengthening fibre handling and grading at shearing sheds; this also helps in enforcing the traceability of Lesotho produce at international markets – as natural fibre such as wool and mohair compete with synthetics. Our shearing shed system makes it possible to trace origin of fibre from shed to broker to buyer
c) conducting improvement of shearing shed facilities and investing in access (feeder) roads. Particular attention will be paid to supporting small livestock owners’, including the disadvantaged and youth, access to market opportunities and for women to be actively encouraged into rural cottage enterprises.

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TRANSFORMING THE AGRICULTURE SECTOR AND FOOD SECURITY

Lesotho’s Agriculture has long been touted as the backbone of the country’s economy, especially the rural poor. With the country’s arable land only accounting for just about one-third of the land, it does however demonstrate potential that it could be the major contributor to the Kingdom’s GDP. It is therefore not surprising that it is a sector in which the government intends to continue to focus its efforts and investments while also rallying behind strategic campaigns to lure foreign investment. Lesotho’s free access to a number of big markets such as the America’s AGOA, the European Union’s ‘Everything But Arms’ as well as the Asian and Pacific markets is as well a suitable springboard for investors looking for decent earnings in the agro-industry.
The sector is one of the few, but critical one that has been highlighted in the National Strategic Development Plan (NSDP) II, identified to have potential of creating employment while addressing hunger and poverty in the country. Vast opportunities remain untapped in this sector, that to date, is still unable to feed a population of just over 2.1 million people. Agriculture contributes only about 5% to the GDP. Noting that Lesotho is a net importer of almost all food commodities, it goes without saying that radical reforms have to be employed first for the country to meet its food security requirements followed by the exploitation of the export market.
In the 2020/2021 Fiscal year budget speech, the government intends to increase agricultural production and scale up commercialisation efforts by broadening the scope of existing programmes financed by the World Bank, International Fund for Agricultural Development (IFAD), Food and Agriculture Organisation (FAO) and other partners.
The programmes include Smallholder Agricultural Development Project (SADP) II to increase access to finance through matching grants, schemes that stand at M100 million development value chains in partnership with private sector for Horticulture, leather, wool and mohair as well as spices and essential oils, as some of the first mover industries.
Also of importance is the completion of the national irrigation scheme master plan which revealed that Lesotho has 53,130 hectares that can be irrigated at a cost of M12.6 billion. In the medium term, the focus will be on rehabilitation of existing infrastructure and development of infrastructure for 24 percent of irrigation land (12,652ha).
All these initiatives need to be supported by a progressive agricultural inputs production and marketing systems, robust market intelligence and information systems as well as extension services. They require complementarity between the government and the private sector and experienced non-profit organisations in the extension of agricultural support services.
In 2008, the government of Lesotho passed the Drugs of Abuse Act of 2008 and the Cannabis Regulations Act of 2018, later amended in 2019. These ground-breaking pieces of legislation catapulted Lesotho to be the first African country to legalise the cultivation of medicinal cannabis that complies with the United Nations drug control conventions. The global ‘rush’ for cannabis oil is a big market that is estimated to reach USD 97 billion by 2026. Like the rest of the other industries, the cannabis industry was hit by Covid in 2020 but is expected to recover in the medium term. It is also expected to align with completion of zoning plants to preserve prime agricultural land for horticulture and identify appropriate land for cannabis production.

One of the first movers in the industry, MG Health became the first African cannabis-grower to win European Union permission to export cannabis flower for medicinal use in April, 2021. The certification allows MG Health to export cannabis flower as an active pharmaceutical ingredient (API) under the EU’s Good Manufacturing Practices (GMP) protocol, and they can export into Germany and the wider European market. MG Health currently produces around 250kg of packed cannabis flower a month on a pilot-scale production footprint of 5000 square meters. Apart from MG Health, there are other active cannabis producers in Lesotho, targeting both medicinal cannabis and hemp.
To further explore the challenges and possibilities that exist in the sector, the Ministry of Development Planning also commissioned the 2019/20 Lesotho Agricultural Census in April 2020, which covers all the districts of Lesotho. The Census was an initiative supported by the United Nations’ Food and Agriculture Organisation (FAO).
The census is an initiative of the FAO to assist in the filling of data for monitoring and evaluation development in agriculture to address food security challenges. The main objective of the census is to provide data for evidence based planning and policy making processes as well as monitoring and evaluation of agriculture programmes and projects. The agricultural census will cover activities on agricultural households and commercial farms under different systems of land tenure in the administrative districts as well as rural settlements including the four ecological zones in the country being the lowlands, foothills, the Senqu river valley and the highlands.
When completed, the census will provide data on accessing food security, agriculture planning and policy formulation and the role of gender in agriculture amongst others. The census will also provide indispensable data for the research and appraisal of the composition, distribution and prospective growth of the agricultural sector. Agricultural Censuses have been conducted decennially by the world since 1930. Lesotho started undertaking decennial Agricultural Census since 1949/50. The last census was conducted in 2009/10 with the support of government in collaboration with FAO.

On the wool and mohair industry, which is the cornerstone of this sector in the economy, the country has 40,000 farmers who are members of the Lesotho National Wool and Mohair Association. On average, the association has 80, 000 herders hired to look after the small stock made up of about 1,1 million sheep and 832,000 goats. There are 120,000 people who depend mostly on the industry, largely found in the foothills and mountains of the country.
These statistics have been provided by Wool and Mohair Association of Lesotho, which is still working hard to recover from the losses incurred during the disruptions that came with the implementation of regulations that blocked farmers to take their fibre to the international markets through their traditional brokers in South Africa, but instead to support the market localisation under the new government policy.. The current status regarding the performance of the industry, which is now recovering is yet to be analysed after all sales for the year have been done. However, revenue collected by the association for 2016/17 was in the region of M400 million. World rankings on sale of wool, places Lesotho on position four, while on mohair, the country is ranked position two after South Africa. The wool and mohair industry, which predominantly supports the rural populations of Lesotho accounts for 4.8% of Lesotho’s GDP.
The industry has attracted international partners such as the International Fund for Agricultural Development (IFAD) and OPEC Fund for International Development (OFID) to establish the Wool and Mohair Promotion Project (WAMPP), which is working with farmers to help them develop this industry through the use of climate-smart planning approaches and the improvement of the parent stock for better yield.
WAMPP is a value-chain based project that is divided into three technical components. The first component is called Climate-smart Rangeland management. Under this component, the first section (sub-component) is concerned with improving climate-information by improving the quality of weather and climate information to help farmers to plan their annual activities in line with available information.
In the past, farmers have lost animals that were exposed to hazardous weather conditions like snowfall or hailstorm shortly after being shorn. Such mortality could be easily avoided if farmers receive accurate and timely weather forecasts thus helping them to better schedule activities (such as shearing).
To address the challenge WAMPP has procured five automatic weather stations and other meteorological equipment and also financed training of officers in order to bolster the capacity of Lesotho Meteorological Services (LMS).
In order to reach farmers directly, the project is also training farmers using an approach called Participatory Integrated Climate Services for Agriculture (PICSA). More than 7000 farmers country-wide have already received training under this programme. PICSA equips farmers with a simple, easy-to-follow framework that allows them to factor-in weather and climate information in their planning, enabling them to climate-proof their production methods.
Smallholder wool and mohair producers are positive about PICSA as farmers are now able to choose fodder varieties that are suitable for the envisaged weather conditions when planting fodder to be used as supplementary feeding for their sheep and goats.
Climate Change Challenges
Like most developing countries, cropping in Lesotho is largely dependent on rains and with the changing weather patterns and persistent droughts in recent years, the change in attitudes and planning has become more urgent and necessary and thus the need for sound investments in the sector. In the past Lesotho used to pride herself as one of the major exporters of asparagus into the EU market, the industry that has since collapsed. Efforts have now shifted more towards climate resistant agriculture while also looking to invest heavily on irrigation assisted farming for better returns.

THE EVOLUTION OF THE EDUCATION SECTOR IN LESOTHO

Early education in Lesotho emerges from modest beginnings as an informal enterprise, a responsibility mainly left with community elders, local leaders and traditional doctors, albeit for sporadic efforts to pass particular information and/or skills by parents at individual households – like subsequent colonial formal education, most of information and skills exchange was done communally.
Indigenous Sesotho education evolved around initiation schools that acted as informal institutions where learning actually took place, boys and girls separately learned cultural values and thinking, personal and family responsibility as well as duties to one’s clan and community.
Formal education arrived in Lesotho with the missionaries. Whereas it was primarily around literacy, it has evolved with time to a fully-fledged education system of note in the African continent. Though not without challenges, Lesotho ranks as one of the most literate countries on the continent.

There has been a significant transformation in the education sector of Lesotho in the recent years with developments in infrastructure, curriculum and policy, given priority in government budgeting and development – whether through construction of classrooms and science laboratories, building of foot-bridges across rivers dividing villages or setting up of clinics in some of the remotest villages of the country.

As recently alluded to by the government, the improvement of quality of education remains a major concern for Lesotho, but COVID-19 has held the country back in implementing a number of programmes towards reaching some of the set goals and targets.

The Ministry of Education has developed the Education Sector COVID-19 Response Plan and has so far managed to secure a total funding of approximately M61.5 million from Global Partnership for Education and the World Bank. The fund and other supplementary financing from government and its partners will try to bring balance and normalcy in the education sector at all levels.

Schools reopened amidst tight restrictions, most of the efforts have been towards combatting the spread of the virus and protecting teachers and learners while at the same time looking at covering the lost time due to schools’ closure during the lockdowns.

In his budget speech, the Minister of Finance, Thabo Sophonea told parliament that Lesotho should not waste a crisis, but tap opportunities that come with it. “The advent of COVID-19 has accentuated the need to enhance digital infrastructure and skills plus innovative e-learning solutions from basic to tertiary levels. We will review the current programming of resources to create space for quality and equitable e-education,” Minister Sophonea argued, further indicating that Lesotho can export services in this area, where it has comparative advantage. “There is no reason why a Sesotho teacher cannot teach in Botswana and South Africa but based in Lesotho…,” he told parliament during the tabling of budget proposals in February this year.

The national skills audit is also being undertaken to inform the improvement of relevance and applicability of skills in the country, the government also aims to improve Technical and Vocational Training (TVET) institutions. This will also include putting in place the means of testing mechanisms that will enable a well-targeted sponsorship strategy of Basotho scholars, especially at higher institutions of learning. Finance minister also announced that quotas for scholarships to study in the region and locally will increasingly be limited to priority areas, saying it therefore means that institutions need to transform their programmes and curriculum in line with the changing market demands.

Evolution of the Lesotho Education System
Although Lesotho became a British colony in 1868, the colonial government continued to support missionary education and the churches received grants from the British Colonial government to run the schools. In 1909 a central board of advice was established, consisting of a director of education and representatives of government. This was further followed up by the appointment of the education secretariat to function as a link between the schools and the government.

This development brought up two important changes, first the formulation of the comprehensive Education Act defining the role and responsibility of government and the churches in the management policy of the schools; secondly, central and district advisory committees were established to provide for education policy for chiefs, churches and government.

The revised framework of operations established the need for uniform syllabus and a system of school inspection. The new system of education used uniform syllabus and brought about a new standard examination for primary and post primary schooling. The use of formal, standard qualifications and credentials was introduced and the credentials became the key for obtaining employment in the colonial civil service and the teaching force.

These developments have contributed to the form of Lesotho’s education system as we have it today. With the need for civil servants, the need for the establishment of secondary schools led to the British setting up a model high school, the Basutoland High School in 1937. This was to be an example of how the Lesotho senior secondary education should look like.

This new form of formal education had eight levels, comprising pre-primary (Level 0) for children between the ages of three and five, followed by elementary or primary school (Level 1), which started in Standard 1 and lasted for seven years. At the end of Standard 7, pupils sat for the Primary School Leaving Examination (PSLE).

Secondary education began with junior secondary (Level 2) and lasted for three years (Forms A, B and C). Senior secondary (Level 3), lasted for two years (Forms D and E), and was referred to as high school. Progression from junior secondary to high school was through the Junior Certificate (JC) examination. High school candidates sat for the Cambridge Overseas Certificate (COSC) of the University of Cambridge Examination Syndicate in order to pursue tertiary education or go into employment.

The COSC has now evolved into what is now known as the Lesotho General Certificate in Secondary Education (LGCSE), and forms an entry requirement for higher and tertiary programmes. The LGCSE is locally prepared while COSC was internationally prepared.

Level 4 refers to post-secondary education, and comprises institutions offering technical and vocational training, whilst tertiary education (Levels 5, 6 and 7) is made up of institutions such as the Lesotho College of Education (LCE), the National University of Lesotho (NUL) and Limkokwing University of Creative Technology (LUCT) and other recently registered public and private colleges.

LCE, successor to National Teachers Training College (NTTC), partners with NUL to provide basic pre-service teacher education for teaching in primary and secondary schools, it also provides in-service, part-time and distance teacher education to enable unqualified and under-qualified school teachers to achieve diploma-level qualifications. School and technical education examinations are managed by the Examination Council of Lesotho, together with the Technical and Vocational Education and Training Commission.

International partners are supporting the country through the Better Early Learning and Development at Scale (BELDS)’ initiative.BELDS has discovered that every day, 53 000 young children, from toddlers to the age of 5 years, attend pre-school in Lesotho. They learn the alphabet, numbers, and shapes and how to play with other children.

Under the supervision of teachers and caregivers, the children are encouraged to come to school and learn and play together in a safe, stimulating environment.

But not all children are so lucky, nearly 6 in 10 children aged between 3 and 5 years receive no pre-school education with enrolment rates as low as 4 percent in remote and mountainous highlands districts. These children lag behind their peers from the start of Grade 1 and often do not catch up.

To augment this foundational effort, government in 1999 embarked on the review of primary and secondary education curricula with the purpose of making education at these levels accessible, relevant, efficient and of the best quality. In that regard, the Ministry of Education and Training developed a new Curriculum and Development Framework to guide the transformation of teaching and learning as well as assessment at these levels.

Subsequent to that, Free Primary Education (FPE) was introduced in Lesotho in the year 2000 as a major strategy towards achieving the Education for All (EFA) goals, leading to a rapid increase in the net national enrollment rate which was catapulted to 82 percent of primary school aged children – with 80 percent boys and 84 girls.

Within this broad policy framework, and in tandem with the EFA and Millennium Development Goals (MDGs), Lesotho implemented the Free Primary Education policy in most of its primary schools in 2000.

The policy’s main objectives are to make basic education accessible to all pupils; to make education equitable in order to eliminate inequalities; and to ensure that every child completes the primary cycle of education and ensure that education is affordable to the majority of Basotho.

The enactment of compulsory free primary education in 2010 was a culmination of a decade long plan by the Lesotho government to move a step ahead and turn into law the commitment to ensuring that all girls and boys between the ages of 6 and 13 years attend school. A poverty reduction plan was also integrated within the policy and to allow parents to partake in school feeding schemes.

General government expenditure on education is funded by transfers from international sources to government, with education spending for 2018 at 13.80 percent, a 10.89 percent decline from 2008. In 2008 spending was recorded at 24.70 percent, a 3.54 decline from 2006. In the current year government has budgeted M141.20 million for the education sector’s capital budget with the bulk of the financing, M65.6 million, coming in as donor loans while the rest is grants and the Lesotho government contribution. Total estimates for the recurrent budget stand huge at M2,474.9 billion, a slight decrease from last year’s M2,616.8 billion.

The World Bank is the largest donor and is the grant agent for the Global Partnership for Education with a grant of US$2.1 million to support the implementation of the 2016-2025 Education Sector Plan.

King Moshoeshoe I, the Father of Diplomacy
Writes Kalosi Ramakhula

In Southern Africa, King Moshoeshoe I stands out as the most prominent exponent of classical African governance. This founding father of the Basotho nation is the most successful ruler of his time in the region. Basutoland, as it was previously known under Moshoeshoe I was not only a military superpower but is was also a viable economy that was able to sustain its people and others. Though Moshoeshoe is credited by military scientists as one the world’s greats in the field, it is for his diplomatic excellence that he is mostly celebrated.
Alone among his contemporaries, he secured for his people, a position far superior to anything that the sheer odds of the era could have allowed even the most populous Southern African nation, Amazulu,
When almost all the nations and tribes in the region were overrun and taken under either the British or the Boer rule, the Basotho alone stood independent, holding on to their sovereignty.

King Moshoeshoe the Diplomat
The origins of word diplomat derive from New Latin diplomaticus…then French Diplomatique , summarily defined as; Involving the work of maintaining good relations between the governments of different countries. The word is further explained as employing tact and conciliation especially in situations of stress.
But the word is not only restricted to official conventional use in the chambers of international relations. It is also used in day to day language by ordinary people to refer to a person who is polite and tactful in his dealings with other people or situations. King Moshoeshoe I seems to have excelled in both the official and non-official use of the word.

Moshoeshoe builds a nation out of remnants of several tribes ravaged by the Lifaqane wars:
It is important to note that the Basotho nation from its inception was already a conglomeration of different clans and tribes. These included the Ngunis who were settled in the same areas as the Sotho/Tswana clans and tribes. The most prominent of which was the Amazizi of Dhlamini a branch of the proto tribe of most of the Nguni tribes settled in Southern Africa. It was from this tribe where Moshoeshoe’s supreme commander Makoanyane comes from.
There are approximately 18 tribes and clans that make up the Basotho nation. Three of these tribes, the Bafokeng, Bakoena and Matebele/ Matsitsi form the bedrock of this nation…you could call these “family”. Then there are tribes that joined the nation as corporate political entities, such include Makhoakhoa, Baphuthi, Bataung, and Batlokoa. The rest of the tribes seem to have joined Moshoeshoe voluntarily as semi-independent entities, such as Makholokoe who had a centralized government but were spread over a wide territory etc. Then there are those who joined as individual families or villages escaping from the Lifaqane only to regroup within Moshoeshoe’s country.
The Baphuthi were in today’s Lesotho before Moshoeshoe’s nation. The first contact occurred in 1826 when Chief Mohale captured Baphuthi boys and brought them to Thaba-Bosiu. Chief Mokuoane and Moorosi followed the trail of the boys. They found the boys in Thaba-Bosiu where they met with Moshoeshoe. In the ensuing negotiations, a lifetime relationship was struck that led to the Baphuthi being part of the Basotho nation.
This historical epoch that saw the gravitation of tribes and clans towards Thaba-Bosiu, is important in that it brought the dynamics that saw the consolidation of Basotho as a nation. But this was no small feat to achieve. It took Moshoeshoe’s diplomatic dexterity to craft a nation out of these people who came from different backgrounds. Some of the people who were joining his new nation actually came from tribes that had fought one another. Some were cannibals who had devoured relatives of some of his countrymen. As a matter of fact, the cannibals, led by Rakotsoane devoured his grandfather, Peete on their way to Thaba Bosiu in 1824. Instead of avenging his grandfather’s death, Moshoeshoe made peace with the cannibals. Also starkly aware that he could not afford to lose any man, he performed a purification ritual, which involved killing an ox and rubbing its offal over the cannibals as Basotho would do to the tombs of the departed. Rakotsoane and his companions were treated as the grave of Peete and their lives were spared. Moshoeshoe provided these cannibals with cattle, gave them land to build houses and incorporated them into his nation.
Two important things that Moshoeshoe introduced to the national court to ensure national cohesion were; First was a law that was backed up by idiomatic expression “U se re ho Moroa, Moroa tooe!” “Don’t say to the San, you San.” This ruling prohibited discriminating others based on their ethnicity.
The other rule that he made was that; all shall forgive one another for the crime committed before formation new nation. It is said that Moshoeshoe was so strict on this forgiveness clause that in one case he actually sentenced a man to death for refusing to forgive …and saw to his execution being carried out.
King Moshoeshoe and the missionaries.
The first missionaries in Lesotho were from France. Eugene Casalis, Thomas Arbousset and Constant Gosselin arrived in 1833. The coming of missionaries to Lesotho was the result of Moshoeshoe’s discussion with one Adam Krotz, a Griqua hunter. What Moshoeshoe was actually looking for and needed advice from Krotz about was guns. He wanted to acquire guns. But Krotz advised him to get the missionaries instead. And to this advice Moshoeshoe was sold. What fascinated him about the missionaries was the whole technological world they came with and the ability to sow peace among the people.
Fortunately for Basotho, the missionaries who came to Lesotho were truly of high intellectual capacity especially Eugene Casalis. Casalis and Arbousset came from a France where there had been religious persecutions, and being Protestants who had borne the brunt of oppression in their country, they tended to sympathise with the downtrodden. The relationship of these missionaries with the Basotho became so critical in Moshoeshoe’s nation building and especially at dealing with the new political scenario that Southern Africa became with the arrival of both the Afrikaner and the British.
Casalis exposed Moshoeshoe and his Council to the European political approach. This understanding helped Moshoeshoe’s council to ably deal with the Boers and the British in the ensuing political disputes. The missionaries also lobbied for the interest of the Basotho in the law making chambers in the Cape and in Britain itself. Eugene Casalis became the de facto Minister of Foreign Affairs for Lesotho.
The role the Missionaries played in Lesotho served to a very large extent what Moshoeshoe had hoped to achieve by inviting them to his country, the intellectual infusion of ideas on an international scale. Through them, Basotho were introduced to the world beyond their horizons.
The Missionaries also contributed towards Moshoeshoe’s national construction effort by helping standardise the Sesotho language. It should be remembered that the new nation was made up of people who came from different parts of Southern Africa , the dialects spoken by Moshoeshoe’s new nation were as many as those tribes that comprised the new Basotho nation. The tying down of the Sesotho language to written form, to a large extent, standardised the language of the Basotho. This was a process that took a long time but in the long run, it turned Sesotho into one solid language.
The performance of the missionaries in Lesotho, the vigour and loyalty with which they presented themselves to the matters of the welfare of Basotho was to a large extent the result of Moshoeshoe’s open hearted relationship with them. Though not a convert himself, Moshoeshoe attended some church sermons, at times even interpreting them to the congregants to make it easier for them to understand the Missionaries’ messages.
This relationship between the two men, contributed to the sustenance of the state of Lesotho that we know today. Moshoeshoe was able to play his political cards effectively due to the French Missionaries’ knowledge of European political thought and for this, Moshoeshoe, using his natural gift at diplomacy was able to maneuver his nations through the perils and ultimate destruction that became the destiny of almost all the other southern African states.
In 1868 King Moshoeshoe’s plea for Lesotho to be made a British protectorate was finally answered by Queen Victoria. It is important , at this juncture, to put into proper context the reason why Moshoeshoe wanted the protectorate status for Lesotho. In one of the letters he wrote when soliciting British protection…Moshoeshoe writes; “…It is not that I am unable to defend my people against the Afrikaner …it is the possibility of war breaking out anytime that deprives me of sleep…this does not give my people prosperity…”
So when the British finally declared Lesotho a British protectorate it was not more because Lesotho was on the verge of collapse, it was in truth because the Orange Free State was no longer able to sustain this war, its economy on the verge of collapse.
The British declared Lesotho a British protectorate on the 12th of March 1868. In a conference to which the Basotho were not invited, a treaty was drawn between the British and the Afrikaner. For that treaty, documented by historians as the treaty of Aliwal, the British decided to give the Orange Free State the so called Conquered territories. These so called conquered territories actually comprise Lesotho’s prime land. The 12th of March was celebrated as Moshoeshoe’s day, which was in effect, a celebration of the annexation of Lesotho by Britain. King Moshoeshoe I died on the 11th of March 1870. On his last diplomatic masterstroke, it is said on his death bed, Moshoeshoe refused to be baptized for fear of dividing his subjects along religious lines. At the time, both the Paris Evangelical Missionary Society and the Catholic Church were active in his people.

The Basotho nation continued beyond King Moshoeshoe. The reins of power fell in the hands of Paramount Chief Letsie I. Letsie led Basotho during the gun war following the scuffle over the 1879 Disarmament Act which was about the British Cape Colonial government trying to extend the act from South Africa into Lesotho. The war was finally won by the Basotho, Chief Lelingoana son of Maketekete of Chief Sekonyela sided with the Basotho, taking his Batlokoa warriors with him to attack the British post in Matatiele,
When the war was over, Letsie placed Chief Lelingoana in Mokhotlong. Thus the royal house of the Batlokoa joined Lesotho. The Batlokoa royal house still enjoys the Principal Chieftainship in Lesotho to date.
After the dawn of democracy in 1993 when the Basutoland Congress Party (BCP) took power, it was decided that Moshoeshoe’s day shall be commemorated on the 11th of March in remembrance of the founding father of the nation and not the day when Lesotho was annexed by Britain.
Looking at Lesotho today there is nothing more valuable that Lesotho has more than its glorious history. There are a number of projects in Lesotho that are intended to preserve and make this important heritage known. There is still the celebration of Moshoeshoe’s day on 11th March, which is a national holiday, the King Moshoeshoe memorial lecture and the annual Moshoeshoe walk as well. A Cultural village was also erected in Thaba-Bosiu to promote consciousness on the heritage of Basotho. There are also initiatives being taken under the auspices of the Lesotho Bicentennial 2024 that are aimed at reviving Basotho nationhood using cultural and historical events.

Power Generation in Lesotho
Writes Lawrence Keketso
Lesotho’s energy sector is one of the most infant and under-developed, with the country’s efforts towards self-sufficiency in electricity generation well on course and in line with the national development strategy goals. The country is already enjoying benefits of an almost 100 percent clean energy generation, with a mix of hydro, wind and solar power generation catching and attracting capital budgeting and investments in recent years.
With the 72MW hydro-power plant in ‘Muela being the only major electricity producer in the country, the recently commissioned construction of the 30MW solar electricity project in Mafeteng at Ha Ramarothole, could see the country lower its annual electricity imports by almost 50 percent in the next five years while also likely to attain total self-sufficiency in the next less than two decades to come.
In pronouncing further its commitment to developing the sector, the government has stated in its recent fiscal policy statement: “…in an effort to increase electricity generation in the country, the Ministry of Energy signed the eight concession agreements with a private company to develop mini grids in rural areas to provide electricity to 6,000 households. Furthermore, 10 agreements with four private companies were signed to establish energy shops for energy 26 efficiency and solar lanterns in five districts of Mokhotlong, ThabaTseka, Quthing, Qacha’s Nek and Mohale’s Hoek. The Lesotho Electricity Generation Company (LEGCO) has been established to oversee the construction and the commencement of phase I and phase II of Ramarothole Solar Electricity Generation Facility in Mafeteng which will generate 30MW solar electricity. Furthermore, the implementation agreement was finalised with an Independent Power Producer to start the construction of 20MW solar generation. The Lesotho Renewable Energy and Energy Access Project for off-grid electrification and grid extension to 6 industrial zones (Butha-Buthe Ha-Belo, Maseru Tikoe I and II, Mokhotlong, Berea and Qacha’s Nek) was launched in the third quarter of 2020/21 fiscal year.”
The statement by the Minister of Finance at his budget speech in February also ads that during the 2021/22 fiscal year, about 1,100 households and two schools will be electrified at Belo Industrial Zone in Butha-Buthe district and 16 mini grids will be launched in rural areas.
While the government of Lesotho is focusing on a number of small to medium power generation projects, the second phase of the Lesotho Highlands Water Project (LHWP II) has commenced, and the advance infrastructure programme is at an advanced stage. It is expected that expenditure under the LHWP II activities will be in the order of M4 billion in the fiscal year 2021/22. The tender for the construction of the main works, water transfer works (dam and tunnel) and for the consultancy services for the design and construction supervision of the hydropower component will be advertised in the first and second quarter of 2021/22 fiscal year, according to the Minister of Finance.
The commencement of the works at Polihali also brings a new hope for a much larger hydro-power facility once feasibility studies have been completed.
According to the Lesotho Water and Electricity Authority (LEWA) the electricity supply industry in Lesotho is dominated by two state owned entities, namely the Lesotho Electricity Company (LEC), which is the monopoly transmitter, distributor and supplier of electricity, and the Lesotho Highlands Development Authority (LHDA), which is the main generator of electricity through its ‘Muela Hydro Power Station. The generating station is part of the Lesotho Highlands Water Project.

Accelerating the electrification programme in Lesotho is a key policy tenet of Government. LEC is supposed to be responsible for electrification within its service territory. Outside the LEC service territory, rural electrification efforts are currently managed by the Rural Electrification Unit (REU) of the Department of Energy (DoE). The LEWA has set up a Universal Access Fund which has started operations. Since 2011, over 10 electrification projects have been supported from the Fund. The Fund disburses monies for purposes of subsidizing the capital costs of electrification in the country. At the moment, the source of the money to the fund is the electrification levy from the Lesotho Electricity Company (LEC). The Fund receives and disburses funds for the purpose of subsidising the capital cost of electrification with the goal of facilitating the development and expansion of electricity services infrastructure in areas that have been identified by the Government.

All these have significance for the LEWA’s regulatory role and responsibilities. The LEWA has a significant role to ensure that electrification is accelerated. The LEWA is currently implementing a regulatory framework which provides certainty to suppliers while at the same time, protecting the interests of electricity customers.

The Lesotho energy policy framework primarily targets to address these constraints within the framework of environmental protection. The Energy Policy Vision for the Kingdom of Lesotho states that; Energy shall be universally accessible and affordable in a sustainable manner, with minimal negative impact on the environment.
Energy Policy Goals presented in the Energy Policy Framework are based on the following energy goals: Contributing towards the improvement of livelihoods, where the energy sector will contribute towards poverty alleviation in Lesotho. This, according to the national document will be achieved through the creation of income generating opportunities that sustain and improve the lives of people in the country through facilitating the provision of affordable technologies and services.
The energy sector in Lesotho is also set to contribute towards economic growth through initiatives that emphasize efficiency in energy sector management, job creation as well as those that position Lesotho as a competitive player in the SADC region. Emphasis is placed on the creation of conditions that encourage private investment, but which ensure, where appropriate, that ownership of energy sector resources continues to rest locally.
The Government of Lesotho will ensure security of energy supplies to meet the national requirements from diversified sources that are subject to local resources, regional agreements and economic feasibility and thus contributing towards the protection of the environment where energy resources will be used in such a way that international, regional and local environmental agreements and protocols are observed.
Lesotho also has a number of potentials in bioenergy and mini-hydropower plants where the private sector and especially local players through community cooperatives can reap some investment benefits.The Lesotho Energy Policy and Renewable Energy Investment Plan have been developed and approved by Cabinet in 2015 and 2017, respectively. The government, according to its National Strategic Development Plan, also envisions to revise the Lesotho Electricity Master Plan.
With the support of the African Development Bank, the Lesotho Electricity Corporation (LEC) rehabilitated the 2-megawatt (MW) Mantšonyane mini-hydropower plant in 2013, and in 2016, the government completed the Japanese-funded 280-kilowatt MIA Solar Generation Facility that was commissioned in 2013.
In 2018, the government and the Lesotho Electricity Company (LEC) signed a Power Provision Agreement with Electricidade de Mozambique to provide Lesotho with up to 30 MW of power, which has managed to secure LEC’s electricity supply and sustained the quality of electricity service, LEWA reported.
The years 2015/16, total electricity connections to the main grid had increased to 235,000, translating to more than 200,000 households connected to electricity, this is equivalent to about 39 percent of Lesotho households connected to the main grid, the 2016 population census reported.
Notwithstanding the significant strides documented by different sectors, the NSDP indicated that access to electricity is concentrated in urban areas and new connections have not been based on targeted industrial clustering or sector clustering that would have stimulated further industrialisation and quickened production processes.
“Despite progress in electricity access, the energy balance continues to be characterised by dependence on biomass fuel, contributing 66% of primary energy needs for cooking, lighting, and space heating for the rural Basotho which constitutes to 60% of the country’ population.
“This demonstrates the population’s vulnerability to extreme weather events associated with climate change,” the plan said noting that the extensive use of wood fuel has a cascading eﬀect on deforestation which translates to loss of biodiversity), soil erosion, and water availability.
Lesotho Energy forecast reported that imported petroleum products, hydroelectricity, coal, and liquid petroleum gas comprise 34% of primary energy demand in Lesotho.
“While part of electricity produced is on hydropower from Muela Plant and has the capacity to produce 72 MW, and the other four mini-hydropower plants have a combined capacity of 3.25 MW, Lesotho continues to operate on an electricity deficit that is oﬀset by electricity imports from South Africa and Mozambique,” LEWA noted.It indicated that Lesotho’s average power demand is around 145 MW, with peak demand around 152 MW.
The NSDP further indicated that regardless of abundant renewable energy resources, Lesotho’s power infrastructure supply has not kept pace with the rising demand.
The 2016 World Bank Enterprise Survey pointed out that electricity remains a major constraint in doing business in the country. The survey indicated that this constraint is particularly acute for large industries and medium enterprises.
“Large firms are concentrated in mining and manufacturing and usually use heavy, energy intensive industrial processes. With better access to reliable and aﬀordable energy sources, large manufacturers could envision installing or expanding businesses in Lesotho, creating opportunities for economic growth zones and job creation,” the Bank noted.
To aid the country with the access to electricity, the World Bank approved funding to Boost Lesotho’s Efforts to Improve Electricity Access to Thousands of Basotho
“Thousands of Basotho living in rural and peri-urban areas will have better access to reliable and affordable electricity as a result of USD40 million in new financing from the International Development Association (IDA) and an additional USD12.9 million from the Scaling Up Renewable Energy Program (SREP) for the country’s energy sector.
The Bank stressed that the Lesotho Renewable Energy and Energy Access Project, which is largely targeted at people living in remote areas, aims to expand access to electricity to diverse consumers with varied needs, including households, rural communities and in the outskirts of urban areas, small and medium enterprises and economic centres that are on or off the grid.
“The project will also provide technical assistance to build capacity of both public and private sectors to ensure sustainable provision of electricity in Lesotho. This project will give an impetus to Lesotho in its achievements of Sustainable Development Goals 7 – Affordable and clean energy,” Marie-Francoise World Bank Country Director for Lesotho, Botswana, eSwatini, Namibia and South Africa, said adding that through the project, the World Bank will assist the Government of Lesotho towards achieving its goal of providing universal access and affordable energy in a sustainable manner, while helping improve the lives of Basotho particularly in the hard-to-reach rural areas and peri-urban areas.
“This is in line with the Lesotho National Strategic Development Plan and the World Bank Group twin goals of reducing extreme poverty and promoting shared prosperity,” the World Bank had said, further stressing that the project would create conditions for more effective service delivery in remote areas and would contribute to creating an enabling environment for economic activity that will foster job creation for the youth through the participation of the private sector in the delivery of on and off the grid energy.
RENEWABLE ENERGY
Lesotho’s 2015-2025 Energy Policy commits the government to provide universal power access, up from just over one third of households today. In line with the AOP 2019 theme #MakeEnergyWork, the government further states its intention to use energy to create new jobs, stimulate private sector involvement and increase Lesotho’s competitiveness within the Southern African Development Community region.
Key projects included the building of new hydropower and wind generation facilities, and transmission infrastructure to meet increased demand.
New transmission lines according to the government would also link Lesotho with South Africa and potentially make Lesotho an exporter of energy.
HEALTH

The Lesotho health sector has been one of the most challenged in the wake of the COVID-19 pandemic. Though the country had much earlier taken precautionary measures to combat the spread of the disease, even before registering one single case, it was always going to be a lost war due to the country’s geographical position, totally surrounded by South Africa, and its porous borders with its only neighbor.

Lesotho experienced a spike in recorded cases following the lifting of the travel ban for citizens wishing to come home during the 2020 Christmas holiday. By February of 202, the number of deaths and registered cases were alarming, especially considering the available healthcare infrastructure that cannot cope with demand. To date almost 11,000 COVID-19 cases have been registered, with 326 related deaths recorded.

At the peak of the COVID-19 pandemic, the health sector was mainly exposed in the country’s capability and preparedness to deal with the magnitude of this pandemic. Key amongst the challenges, as highlighted by the two Prime Ministers to date and at least three health ministers, were shortages in equipment and life support services.

Looking into the national response to the COVID-19 pandemic, the health sector was hit by a mixed bag of failures ranging from the strain on the inadequate health system, frustrations of the front line workers and lack of technical and special skills in fighting the pandemic. These setbacks were huge on the health system itself. In the end, it was all a series of successes and a bit of good luck.

Lesotho has already started the second dose inoculations on the Astra Zeneca vaccine which was first administered in March this year for 30,000 doses.

Lesotho is part of the pooled global procurement initiative coordinated by the COVID-19 Global Access Facility known as COVAX. The Facility has been established by the Immunization Alliance Partners with obligations which include the facilitation of the vaccine access in all Low-to-Middle Income Countries (LMICs) irrespective of their economic situation. Lesotho will access the COVID-19 vaccine through the COVAX Facility Advanced Market Agreement (AMC) and the country will be fully subsidized for COVID-19 vaccines covering 20 percent of the population.

The Lesotho private sector has also made contributions towards private procurement of the vaccine as part of their response and in helping the government to reach higher population numbers to be protected against the pandemic.

The government also secured external funding in the form of loans and grants for the COVID-19 pandemic response. The COVID-19 related activities received funding from the World Bank amounting to USD7.5 million while USD24.1 million was received from IMF for an emergency support, to meet urgent balance of payments needs which stemmed from the pandemic. Grants from the European Union and from the Government of the United States of America amounting to EUR5.5 million and USD36.9 million respectively were received towards COVID-19 related activities.

The Lesotho health system has also experienced other structural and political challenges this year, with the Private Public Partnership deal that established the Queen ‘Mamohato Memorial referral hospital coming under threat of collapse.Whereas negotiations and court processes on the matter are ongoing to find a solution to the problems arising from the deal, it is apparent that this PPP partnership has not worked for either of the parties involves. The ….bed capacity referral hospital remains the country’s biggest hospital with the best facilities available in the country. Where the hospital is left wanting is on administration, which was further exacerbated by the nurses strike, prompting government to take a firm position to try to avert the problem.

On the other hand, China has provided a grant to build the Maseru district hospital with the revival of Queen II hospital, where construction has started. The new district hospital expected to be equipped with state of the art health equipment and technology that is expected to bring the much needed relief to the national referral facility and the country as a whole. To be called Maseru Hospital and Eye Clinic, the new M800 million-hospital will be a modern facility that intends to provide improved health services to Maseru residents and other districts, in particular services including eye care, cancer, tuberculosis (TB), HIV, and non-communicable diseases including telemedicine platforms. The hospital is being built by the Shanghai Construction Company and is expected to open doors to patients in 2023. Once operational, the 200-bed hospital will benefit at least 400 000 people in Maseru and other districts.

The Ministry of Health has achieved a great milestone by launching the Health Sector Turn-Around Strategy in December 2020 in Maseru. The Strategy is aimed at ensuring that the Ministry adopts Primary Health Care (PHC) as an overarching strategy for delivery of health services in Lesotho. It will also inculcate a culture of oversight and accountability at all levels of the health systems; and ensuring that the programmes have the requisite resources and capacity to deliver essential services and strengthen citizen engagement with stakeholders such as Councilors, District Administrators and Chiefs for ownership and responsibility of improved health outcome.

As stated in the fiscal policy statement this year: “The village health worker system is still the bulwark of primary health care and needs nurturing and fortification. We will enhance capacity of regional hospitals with the requisite workforce, equipment, and other resources to cope with increasing demands on the health system,” Minister of Finance Thabo Sophonea emphasized in his statement.

The health system has been strengthened through the installation of teleconferencing infrastructure in 30 health facilities, which include 18 hospitals. This infrastructure has enabled continuation of training, mentorship, and supervision of health care workers virtually for HIV/TB and COVID-19 interventions. In addition, this teleconferencing infrastructure supports the largest healthcare worker training on Advanced HIV Disease (AHD) management in which a total of 278 healthcare workers were trained on AHD management virtually over a 3-day period.

In 2021/22 fiscal year the Ministry will, roll-out implementation of the Village Health-Workers Programme Policy linking with local governance structures. Amongst others, the rollout will include maintaining consistency in monthly payment for Village Health Workers (VHWs) stipend; districts and stakeholders sensitisation on the new village health program policy; procurement of VHWs kits and protective clothing; initial trainings for VHWs across districts and continuation of essential PHC services in the context of COVID-19. Sensitisation of VHWs on COVID-19 and their role in surveillance.

In the area of Anti-Retroviral Therapy (ART) Optimization – the HIV programme has responded to the need to improve the lives of people living with HIV by improving the type of ARV drugs being provided in the country. The current ART coverage is over 70 percent with some 224 health facilities providing ART in the country inclusive of both public and private facilities. In 2021 the ministry will be focusing on improving the provision of quality HIV prevention, treatment, and care services.

There has been a call for establishment of a radiotherapy (cancer) Centre in-Country. In preparation for this, an Oncology Clinic for cancer treatment has been established at Senkatana Centre and will soon offer chemotherapy services. The Centre performs cervical cancer screening and treatment for pre-cancer lesions and refers cancer clients requiring specialised treatment to Bloemfontein.
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The health sector has a diverse structure, covering funding, regulation and the delivery of health services featuring a combination of private and public sector participation, mainly run by government. Non-government organisations also shoulder a portion of the work in the direct provision of health services.

Health services are delivered across primary, secondary and tertiary levels. In total, there are 286 health facilities across the country, 265 primary health care centres, 20 general and district hospitals and a tertiary referral hospital, Queen ‘Mamohato Memorial Hospital (QMMH) located in the capital, Maseru. Government operates 40 percent of the primary health centres and 55 percent of the hospitals.

This sector is guided by the national development plan and a strategic sector plan, plans which, apart from general health services, put special focus on reducing infant, under-5 and maternal mortality, as well as improving child nutrition. The general national health strategy emphasises the removal of bottlenecks related to shortage of health professionals, predominantly in remote areas.

Health services in the country are directed by the Ministry of Health, which is tasked with sectoral management with the support of both local and international partners. The ministry is responsible for national health policies, standards and guidelines; mobilization of health resources; monitoring and evaluation of health-sector interventions; and the provision of a legal framework for health-services delivery.

Lesotho also has in place, a National Health Policy (2011), and a Strategic Plan (2013-17), which are both harmonized and aligned with the National Strategic Development Plan II (NSDP) and the Ouagadougou Declaration on Primary Health Care and Health Systems in Africa. The NSDP II is an implementation strategy for the country’s National Vision.

The Road to Parliamentary Elections 2022

Writes ‘Mathabang Fobo
The Kingdom of Lesotho, since the return to democracy and multi-party elections in 1993, will be heading for the eighth general election next year (2022) amidst a cloud of democratic uncertainties and a barrage of constitutional changes. The envisaged changes will be the outcome of the general reforms expected to be completed later in 2021 or early 2022, as part of the broader mandate to find stability and peace in the country’s fragile democracy and rule of law. Since Lesotho adopted the new mixed member proportional electoral model, following the 1998 political crisis, and a spate of unavoidable coalition governments, the country has been caught in a vicious circles of unstable governments and ever deepening political polarity amongst its citizens camped in the trenches of some more than thirty-eight (38) political parties fighting for places in a 120 member parliament.

As 2022 promises to usher a new-look political playing field, Basotho are about to show how and who they want to be governed by, as the country is preparing for the National General Elections that are expected to be held in September-October 2022. The actual date is yet to be announced by His Majesty the King Letsie III as per the constitution of the country.
In preparation for the upcoming elections, the Independent Electoral Commission (IEC), has identified key issues it will address. The focus, as recently proclaimed by the Commission, will be on the well-being and participation of Basotho voting community and in ensuring the best interest of the public on the implementation of issues before the up-coming elections. Among the key issues that the IEC has identified to resolve are voter registration and verification of lists (which normally tops the list of contentions), fresh Constituency delimitations and new political party registrations.

What makes the job of the IEC even more difficult, is the fact that even though the time to hold elections is closely approaching, it is difficult to predict what to expect in the upcoming elections because the political situation in the country changes from time to time. Political parties keep on increasing and the parties which were the main contesters during the previous elections are splitting, and that also means the chances of having any outright majority winner are dwindling. In effect, this scenario calls for the nation to anticipate yet another coalition government in 2022. An outright winner needs 61 seats or above to form government, which does not look feasible based on current trends and the existing status quo in the political formations of Lesotho. The outcome will also be influenced by the allocation of the 40 proportional seats over the 80 constituency seats, as most of the coalition numbers are made here.

Apart from the 2022 general elections, the country is also in the process of holding by-elections in five constituencies, where National Assembly Representatives died or resigned. This is pursuant to section 188 (5) of the National Assembly Electoral Act of 2011.
During this run-up to the upcoming 2022 polls, there have been the emergence of new political parties which are going to cause a further confusion or even increase choice for the electorate. In April 2021, two independent political parties were formed breaking away from the All Basotho Convention (ABC) which is currently leading the present grand-coalition government with the Democratic Congress and other allies. There is also a series of other new parties waiting to be officially registered with the IEC. Whereas the democratic principles dictate that there must be freedom of speech and association to encourage pluralism in Lesotho’s politics, it is also poses a question on the ideology and set up of the country’s political landscape, where in a population of just over two million, there are currently 38 registered political parties and the nation is still counting as more are likely to register.
On the other hand, Lesotho is in the process of reforming the nation, under the theme ‘The Lesotho we want’. This is an exercise supported by the SADC leadership, with South Africa playing the mediatory role. In the past few years, there has been a growing recognition that Lesotho needs to undertake far-reaching reforms to ensure stability and prosperity. The exercise also recognize that Basotho deserve to live in a stable, peaceful and secure environment and be assured of the enjoyments of their rights and efficient service delivery. The stability on political from also implies that there will be opportunities for economic development and a positive investment climate.
The SADC mandate also notes that Lesotho has had a long history of political instability and security challenges which has been occasioned by several factors that includes the weak state and governance institutions, elite dominance of the political space, continuous splintering of leader-centered political parties that are marked by poor management and weak internal democracy, as well as politicization of security establishments, among others.
All these elements run counter clockwise to the principles of effective and democratic governance, accountability to the people, and sustainable development, and have resulted in a climate of extended uncertainty, an environment of lawlessness and abuse of human rights, and retrogression in socio-economic development.
In recent times, the instability experienced since the elections of the first coalition government in 2012, has underlined the need for Lesotho to urgently change course. The need for fundamental reforms in Lesotho has been the subject of several reports and communiqués under the auspices of SADC and reports by other international organizations such as the Commonwealth Secretariat, commitments in coalition agreements and a matter of public debate.
The constitutional and political reforms section of the roadmap is divided into three parts, which are short-term measures (up to 12 months) and has two objectives, being measures to enhance political stability, and the other one is strengthening Parliament by enhancing its autonomy and its ability to fulfil its legislative, monitoring and oversight functions.
The Reform of Parliament has two interlinked elements; to enhance the autonomy of Parliament, primarily through creating an independent Parliamentary Service Commission, and to review and revise practices, procedures and access to resources to enable it to fulfil its functions, particularly to be more effective on its oversight role.
However, issues have emerged that require attention, and they include floor-crossing, party registration and funding, thresholds for representation in the National Assembly, coalition formation, vote of no confidence (and prorogation) and caretaker governments and considerable public debate has taken place over these matters.
A deeper understanding is now required of the options available on these and any other related issues that may be raised and their likely implications if they were to be adopted in Lesotho. Once agreement is reached, it will need to be translated into practice and in most cases, it has been noted that it is feasible to address these issues without amending the Constitution, but to rather focus on amendments to relevant Acts.
The Medium-term measures (12 – 24 months) have three objectives which include interim measures to enhance the independence of the judiciary, to enable it to better protect democracy and the rule of law pending the broader constitutional review process. It is accepted that the judiciary that is independent and that is also perceived to be independent is key to securing the rule of law, promoting fair and effective governance and ensuring stability and protection of institutions.
The Mo Ibrahim Foundation defines governance as the provision of political, social and economic public goods and services that every citizen has the right to expect from their government, and that a government has the responsibility to deliver to its citizens. Lesotho demonstrates positive overall governance performance, ranking among the best performing countries on the continent at the overall governance level and in three categories. The 2020 Ibrahim Index of African Governance (IIAG) Report puts Lesotho in 20th position with a score of 52.3%, with improvements in the four years on the measures on Safety and Rule of Law, Participation and Human Rights The country also demonstrated the largest improvement in southern Africa.
With the expected reforms and changes, Lesotho’s road to Election 2022 may still pose more questions than give answers. Unlike the previous three polls since 2012, the swing might still be somewhat more difficult than ever before.

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