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Lemohang Rakotsoane

MASERU

ABOUT 5000 workers have been temporarily laid off because textile factories have not had orders for the past two months.

This is because the major buyers in the United States where waiting for their government to renew the Africa Growth Opportunities Act (AGOA) provision.

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AGOA allows Lesotho and other countries to export their textiles to the United States without paying duty. AGOA was supposed to be renewed in September last year but President Barak Obama delayed had to wait until December for approval from the Congress.

During that four month delay buyers in the United States stopped placing orders with Lesotho textile companies. Nearly to 90 percent of Lesotho’s textiles are sold to the United States because of the AGOA provision.

Orders are usually made nine months in advance. Distressed textile companies are hoping that orders will start trickling in at the end of this month. However, in the meantime the sectors has send more than a tenth of its workforce home.

According to Bahlakoana Lebakae,Secretary General of United Textile Employees (UNITE), about 2000 to 5000 factory workers have been affected.  Lebakae said between 80 and 85 percent of factories have been affected.“Some buyers are very sensitive. If there is something that they are not satisfied with and nobody gives any clarification they don’t put their orders,” Lebakae said.“However, this time around due to the uncertainty surrounding AGOA a lot of buyers did not place their orders at the expected time and by the time issues surrounding AGOA were clarified it was too late”. “Another issue is that the US through the Millennium Challenge Corporationwrote a letter to the Finance Minister last year showing that Lesotho should rectify the events of August 30, 2014,” he said.Lebakae said that was “a clear indication” that buyers under AGOA might have a second thoughtson placing orders with Lesotho factories. He said big factories that usually get a lot of orders and then share them with other firms did not foresee that there would not be enough orders.  “Some workers have been home for over a month some two weeks, it differs from factory to factory”.Lebakae said employers being send home were not being paid.

“In our Labour Code we do not have a section catering for short times and layoffs.   We only cater for when a worker is absent at work for personal reasons. The money for those days can be deducted from their salaries,” Lebakae said.

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“Moreover, section 85 subsection 4 of the Labour Code says that the employer should pay the employee their salary if at some point the employer sends the employee home due to lack of work,” he said.

He said the employers should have planned “to ensure that there is work for employees todo, not to say they will not pay because employees were not going to work yet it was not their fault that they were not going to work”.

Lebakae some factories had approached unions to discuss the issue but most employers are not prepared to pay employees who are home.

“We will talk with them again after they go back to work but if they are still not willing to pay we will have to take the matter to the  DDPR (Directorate of Dispute Prevention and Resolution) because that would be illegal and we have  won a lot of cases of this nature”.

SeabataLikoti of Independent Democratic Unions of Lesotho (IDUL)said in one factory of 4 000 workers 3 800 were sent home.

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“Employers were saying there were no orders and when we approached them they indicated that the prevailing investment climate was not appealing to a lot of buyers,” he said.

“Although we understand what employers are saying they should not get away without paying workers at all. They have families and people who are dependent on them.How will they survive if they do not get their salaries because of instances that were beyond their control?”

S’khulumi Ntsoaole, former Minister of Trade, said it is embarrassing that it has come to this “due to the prevailing political climate”.

“It is not the investors’ fault that they do not have orders. Buyers have resorted to some markets like the South East Asia because currently they do not have confidence in Lesotho. They are not sure that the products have been produced under suitable conditions,” Ntsoaole said.

“Buyers look for democracy and it goes deeper than having elections. They look at things like people’s freedom of speech, the use of rule of law, that courts are being respected and many other things”.

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“If any of their requirements is not adhered to they start being reluctant to do business with such a country.  So unless the political climate changes, unless the SADAC report recommendations are attended to, it will be difficult for buyers to want to do business with Lesotho.”

He said the American government “is still pleading with our government to fix governance issues. However, buyers have already made the decision for themselves to do business with some people while we wait to fix the situation”.

“As a result of this short time a lot of people are affected, employers do not have the money to pay workers and it is an uncomfortable situation for many,” he said.

’Maresetselemang Moloi, a mother of two, said she was devastated last week when told to go home because there was no work at the factory.

“In January we earned little because we did nothave a lot of working days. Now we are not going to earn again.  Winter is approaching, schools just re-opened and we have to start paying fees for this quarter. How will we do that if we are not working?” Moloi said.

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The textile industry in Lesotho employs over 40 000 people most of them being women.

The garments industry produces approximately 90 million garments a year most of which are bought outside the country by the American, European and SACU markets.

It is the biggest private sector employer.

 

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Business

Take a Break from Summer

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Press release for KFC Lesotho

Date: Monday, 16 December 2024

 

Summer, what a wonderful time of year…

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When influencing gets too much

When the news cycle gets too much

When the endless queues get too much

When the shopping chaos gets too much

When the unavailable transport gets too much

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When the holiday work shifts get too much

When the lawn mowing gets too much

When the loud music gets too much

When the traffic gets too much

When the relentless schedule gets too much

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When the heatwaves get too much

When the weather warnings get too much

When the suntan lines get too much

When the ever-growing laundry pile gets too much

When the festivities get too much

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When the 2025 university applications get too much

When the guests overstaying their welcome gets too much

When the social media mayhem gets too much

When the out of sync traffic lights get too much

When the New Year resolutions get too much

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When the travel expenses get too much

When reapplying sunscreen gets too much

When the packing and unpacking gets too much

When the photo-taking gets too much

When the flies get too much

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When the pool maintenance gets too much

When the fully booked airlines get too much

When the mosquito bites get too much

When the fishing trips get too much

When the baking gets too much

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When the road trip stops get too much

When the sand in the car gets too much

When the picnic ants get too much

When the papa and morogo get too much

When the braai smoke gets too much

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When the television shows get too much

When the homemade cooking gets too much

When the hot car seats get too much

When the outdoor markets get too much

When the air-conditioning bills get too much

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When the nature hikes get too much

When the garden-watering gets too much

When the hot sidewalks get too much

When the bike rides get too much

When the late nights get too much

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When the impromptu trips get too much

When the 4×4 rides get too much

When the golf games get too much

When the ice cube trays get too much

When the late-night crickets get too much

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When the entertaining gets too much

When the bumpy boat rides get too much

When the paddleboarding gets too much

When the public pool crowds get too much

When the lack of parking gets too much

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When the summer internships get too much

When all you need is a breather

 

You have made it to the end. Take a break from summer with KFC Lesotho on Saturday, 21 December, a day to pause, refresh, and savour the start of holiday mode. Swing by KFC for a taste of summer and officially step into the holidays, recharged and ready. See you there!

 

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Discover KFC’s Summer Delights!

KFC Summer Twisters: https://www.youtube.com/watch?v=LVlAX00WROU

KFC Summer Krushers: https://www.youtube.com/watch?v=QpCn-tFYrls

KFC Summer Buckets: https://www.youtube.com/watch?v=SbiOjRR58UA

 

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End.

 

About KFC Africa

KFC has been in South Africa for over 53 years and has more than 1,300 stores across the country. The first KFC restaurant in South Africa opened in 1971 in Orange Grove, Johannesburg. KFC is the leading quick-service restaurant brand in South Africa with just under a third of market share, according to Brand Image Tracker. KFC serves more than 20 million customers a month and we work hard to ensure that no matter which of our restaurants they walk into, they will get that distinctive KFC flavour and have a great experience. KFC’s Original Recipe® Chicken was first made by Colonel Harland Sanders in 1940 when he perfected his secret recipe of 11 herbs and spices at his restaurant in Kentucky. Today, KFC is the world’s most popular chicken restaurant, still preparing our chicken with the Colonel’s secret recipe to his exact standards. Every KFC restaurant follows the same global processes and procedures to ensure that our customers get great-tasting food, every time.

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KFC Lesotho socials:

Instagram – @kfclesotho – https://www.instagram.com/kfclesotho/

Facebook – KFC Lesotho – https://www.facebook.com/LesothoKFC

X – @KFC_Lesotho – https://x.com/KFC_Lesotho

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Demystifying death benefit nomination

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I recently attended a trustee training session, and it sparked a thousand of opinions and emotions to fellow trustees and principal officers.

It is remarkable how people approach their pension funds with a blend of care and chaos — carefully watching contributions grow but leaving the aftermath of their departure to luck and a roomful of trustees.

With the Pension Fund Act (PFA) 2024 in place, requiring members to fill out and update death benefit nomination forms annually, one would think the process is foolproof.

Yet, we find ourselves navigating the maze of member reluctance and the emotional minefield that comes with deciding who gets what.

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The PFA 2024 makes an elegant appeal to order, asking pension fund members to take charge of their legacy by nominating beneficiaries.

But, instead of pens gliding over forms, there is hesitation, resistance, and in some cases, outright abstinence.

What should be a simple administrative act seems to invoke existential dread or, worse, familial politics.

 

When Nomination Feels Like Negotiation

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One of the most notable trends is the discomfort married members feel at the mere suggestion of allocating 50% of their death benefit to a spouse.

For clarity, the PFA does not say they must — but logic and love might.

However, these conversations often spiral into arguments over “what ifs.”

What if the marriage does not last?

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What if the spouse uses the money “irresponsibly”?

What if leaving an equal share to children or a secret favourite nephew makes more sense?

These “what ifs” often lead to another troubling “what if”: what if no nomination is made at all?

Emotions run high.

Sometimes, the process of completing the form turns into a reflection of unresolved family tensions, where the form itself becomes a battlefield for hypothetical posthumous power plays.

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Trustees, meanwhile, are left to pick up the pieces, making discretionary decisions that almost always leave someone unhappy.

 

What the Law Actually Says

Let us address the elephant in the room.

The PFA does not dictate that anyone’s spouse, child, or distant cousin must receive a cent.

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The law requires you to nominate beneficiaries but leaves the who and how much entirely up to you.

And yet, myths persist, leaving members to believe they are bound to make obligatory allocations.

This misunderstanding is not just inconvenient; it is entirely unnecessary.

The beauty of the PFA lies in its simplicity: nominate someone — anyone — so your trustees don’t have to piece together your
wishes based on tea leaves, distant

relatives, or that one time you mentioned something in passing to a colleague.

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The Real Cost of Silence

If leaving decisions to trustees sounds romantic — think noble strangers making wise decisions — let me assure you, it’s not.

Trustees do their best with the tools they have, but without a completed nomination form, their decisions are guided by discretion rather than your explicit intentions.

And discretion, noble as it sounds, often breeds disputes.

Disgruntled beneficiaries are not just an unfortunate byproduct of silence; they are its loudest consequence.

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Without clear instructions, your death benefits might fund lawsuits instead of legacies.

Is that truly the financial wisdom you have cultivated over a lifetime of disciplined contributions?

 

Completing the Form: The Act of Taking Control

Filling out the nomination form isn’t just compliance; it is an act of empowerment.

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It’s the financial equivalent of saying, “I trust myself to make the best decisions for my loved ones.”

It’s an opportunity to assert control over your life’s earnings and ensure they benefit those you deem most deserving.

Let us put it plainly: by completing this form, you eliminate guesswork, prevent disputes, and protect your loved ones from unnecessary turmoil.

You also spare trustees from playing Solomon with your assets — a responsibility they never asked for but inherit when you opt for avoidance.

 

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It is not that deep!

For all the effort we pour into overthinking, let’s consider the alternative — actually completing the form.

You’ve already made harder decisions, like choosing between investment portfolios or deciding on your retirement age.

Writing down a name or two, alongside their allocations, is, comparatively, a walk in the park.

And for those of you abstaining because “it’s complicated,” let us reflect: is it more complicated than the potential legal battles, heartache, and chaos that might follow your departure?

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Or are we simply procrastinating because planning for death feels uncomfortably final?

 

Your Legacy, Your Way

At the heart of it all, filling out the nomination form isn’t about complying with a law or appeasing trustees.

It is about ensuring your legacy aligns with your wishes.

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It is about giving your loved ones clarity and peace of mind when they need it most.

So, grab that pen.

Fill in that form.

It might not be the most exciting thing you do today, but it could very well be the most meaningful.

After all, if you’ve spent years building a financial future, why let your final act of planning be defined by inaction?

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Teboho Makoetlane

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More US funding for development projects

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MASERU-THOMAS Hines, the US Embassy’s interim head, has applauded Lesotho for passing the Millennium Challenge Corporation (MCC)’s scorecard, paving way for continued development funding.

The MCC is providing assistance to Lesotho to strengthen good governance, economic freedom and investments in the country, managed by the Millennium Challenge Account (MCA-Lesotho Compact II).

The MCC donated US$300 million (approximately M5.4 billion) for health and horticulture development.

For the country to qualify, it had to pass the MCC’s scorecards.

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Hines told Prime Minister Sam Matekane on Tuesday at the State House that the good news is that Lesotho passed, although there are some other things the country has to improve.

For this year, the passing indicators are girls’ primary education completion rate, natural resource protection, land rights and access and fiscal policy.

Indicators that slipped below the pass rate are government effectiveness and freedom of information.

“Of MCC’s 76 scorecards, only 26 countries passed while 50 did not and the good news is that Lesotho once again passed the scorecard,” Hines said.

He said not only did Lesotho pass but it has also improved from passing 15 indicators last year to 17 of 20 indicators this year.

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Hines said the accomplishment reflects Matekane and his government’s commitment to strengthening democratic governance and fostering prosperity.

“Noting the decline in control of corruption indicator, we seek avenues to do more together with Lesotho to combat corruption,” he said.

“Not only does regression in this area put Lesotho at risk of failing the scorecard we also know the corrosive impact of corruption on the economy and society.”

He said they seek to maximise the compact’s ability to ensure greater access to quality healthcare.

Matekane said the scorecards assess the government’s performance in key areas throughout the year to determine the continuing eligibility regarding MCC compact funding.

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He said last year he urged the cabinet to build on the momentum from 15 out of 20 indicators.

“Let me take this opportunity to celebrate our sustained achievement of passing 17 out of 20 indicators which is a 10 percent increase from last year,” Matekane said.

“Specifically, I committed last year to ensure that Lesotho will submit data to support the assessment of girl’s primary education completion rate,” he said.

He said he was pleased with the progress overall and on gender parity in education and they aim to achieve better results next year.

In addition to this, he said, there is still a lot of work to be done, especially around trade policy, government effectiveness and particularly the freedom of information with a notable decline from 83 percent down to 43 percent.

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“Our commitment to control and eliminate corruption remains steadfast. We are working tirelessly to expose corrupt activities, keeping the public sector honest and accountable,” he said.

“The commitment we have made of investing in our people has never wavered over the years and the government is also focused on improving access to quality health services to every Mosotho regardless of their background and location,” he said.

Moipone Makhoalinyane

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