Business
Electricity tariff hike could switch off houses
Published
6 years agoon
By
The Post![](https://www.thepost.co.ls/wp-content/uploads/2019/04/Khoabane-Khalema-oa-Mokhatlo-oa-bajiwwwwwww.jpg)
MASERU – A planned electricity tariff increase will trigger price hikes across the board.
This will pile more pressure on already hard-pressed households and on companies that could respond by retrenching workers to contain costs, according to consumer rights defenders and business leaders.
The Lesotho Electricity Company (LEC) said two weeks ago that it wants to increase charges by 14.2 percent for the year 2019/20.
The tariff change will see domestic consumers paying M1.5992 for a standard tariff of electricity up from M1.4009.
Factories and other industrial consumers will pay M0.0274 more than the M0.1936 standard tariff they pay now.
But Khoabane Khalemela, a representative of the Consumer Protection Association (CPA), said the tariff hike could put electricity beyond the reach of many families that are already struggling to cope with the high cost of living.
Khalemela questioned how, for example, civil servants were expected to afford the tariff increase in addition to the cost of other basic commodities that have also gone up when the government has failed to increase their salaries.
Khalemela’s claim that increasing tariffs could make electricity unaffordable to many families is backed by research which shows that similar hikes in the past have seen consumers, especially in rural areas, switching to other cheaper sources of energy.
He also expressed worry that the move could lead to job losses.
“Employees might lose their jobs due to the high price of electricity,’’ he said, adding that the most that consumers could possibly afford was a 0.2 percent increase in tariffs.
Khalemela said by opting for such a steep increase in electricity charges, the LEC was endangering jobs and in so doing was acting contrary to the objectives of the government’s National Strategic Development Plan that seeks creation of 10 000 new posts by next year.
The assistant secretary of the Lesotho Textile Export Association (LTEA), ’Malikhabiso Majara, said companies would struggle to absorb the new tariff increase.
Majara said many firms were already struggling to keep costs down after increasing the salaries of their workers last year following industrial action by workers towards the end of 2018.
The situation has been made worse by the weakening rand which automatically pushes up the cost of importing raw materials, machinery and spares because the Basotho loti is pegged to the South African currency, Majara said.
She added that increasing the cost of electricity would simply worsen what she described as a crisis facing many businesses.
“Since the firms are the biggest electricity consumers, this is going to (worsen) the prevailing crisis,’’ she said.
According to Majara, industry’s position was that there be a freeze on electricity tariff hikes until the operating environment for business improves and the economy is growing at more than two percent per annum.
The LEC buys electricity from Muela, EDM, ESKOM and SAPP Electricity Market.
According to the LEC representative at the stakeholders’ meeting earlier last month, Mothae Nonyane, the LEC does not receive subsidies from the government.
Nonyane said even without government support in the form of subsidies the LEC has been able to electrify 243 046 households or about 40 percent of total households in the country.
It has also been able to upgrade its systems, but he said the company still faces some critical challenges requiring it to mobilise resources and cash that can only be made possible by raising tariffs.
Some of the challenges the LEC faces include vandalism and theft of copper cabling, with the company, for example, using M637 000 in the 2017 to 2018 financial year to replace stolen cables.
Harsh weather conditions were also another concern as the company spends more money to ensure its workers are able to maintain its property and equipment in sometimes very difficult weather, said Nonyane, who made the comments as he announced the planned tariff hike on March 14.
But while it is understandable that the LEC charges market-related tariffs to remain viable and keep supplies running, this could be self-defeating where it concerns its bid to make electricity available to more households.
A study by Moeketsi Mpholo, who heads the Energy Research Centre at the National University of Lesotho (NUL), showed that families in rural areas tend to limit their use of electricity in tandem with tariff hikes.
The study was carried out in March 2017 in the three villages of Ha-Lejone in Leribe, Seboche in Butha-Buthe and Ha-Sekake in Qacha’s Nek found out that most consumers there relied on gas and firewood for cooking and mostly used electricity for lighting.
The study further revealed that 54 percent of the villagers using electricity said that should tariffs keep on rising they were going to cut down consumption to save money, while 27 percent said they were going to quit electricity altogether and opt for alternative sources of energy.
The authors stated that tariffs had since 2007 gone up by an average 23.6 percent which had also seen average usage of electricity by households declining by the year.
Refiloe Mpobole
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Press release for KFC Lesotho
Date: Monday, 16 December 2024
Summer, what a wonderful time of year…
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
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
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
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
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
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
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
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
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
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
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
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!
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
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.
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
Business
Demystifying death benefit nomination
Published
1 month agoon
December 16, 2024By
The Post![](https://www.thepost.co.ls/wp-content/uploads/2024/12/Insurance-beneficiaries.jpg)
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.
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
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?
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.
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.
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.
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.
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.
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.
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?
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.
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?
Teboho Makoetlane
Business
More US funding for development projects
Published
2 months agoon
December 2, 2024By
The Post![](https://www.thepost.co.ls/wp-content/uploads/2024/12/Screenshot-553.jpg)
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.
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.
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.
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.
“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.
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