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Lesotho, US to sign MCC second compact

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MASERU – THE government will today sign for the second compact of a staggering US$322.5 million (about M5.3 billion) deal under the Millennium Challenge Corporation (MCC).
Lesotho qualified for the second compact in February this year.

Finance Minister, Thabo Sophonea, told parliament on Monday that they embarked on a campaign to build the MCC Second Compact since 2018.

“I am happy to inform this House that the signing of the Second Compact will take place in Maseru on the 12th between the two governments of Lesotho and the US,” Sophonea said.

He said the signing ceremony will be the last step signalling the accomplishment of the MCC Second Compact.
From there, the compact will be implemented.

Sophonea said Lesotho has contributed US$22.5 million (about M371 million) towards this compact with the US government contributing the rest of the funds.

He further told the House that the Compact comprises three different categories: developing health centres, horticulture through irrigation and improving entrepreneurs, businesses and the financial institutions.

The purpose of improving the health centres is to upgrade health services countrywide so that the government lowers medical expenditure for the entire nation.
Regarding horticulture, the minister said the production of fruits and vegetables through irrigation will help grow the economy and fight poverty at village level.

Sophonea said this project is meant to promote investment in horticulture, water conservation and the sustainable management of agrarian land.
He said the project involves the engagement of women and youths.

When the entrepreneurship sector is developed, there would be a sustainable creation of jobs and profit generation through small scale businesses operated by women and youths in the villages, he said.

Sophonea maintained that the Compact would be used as a tool to create sustainable jobs and ultimately result in an economic boom for the entire country.
He said promoting small-scale entrepreneurship is but another step towards the building of a strong economy.

“It is an honour for us as Basotho to sign this Compact because it is the first time in the history of the USA since 2007 that this Compact is signed outside America,” Sophonea said.

And he was quick to mention that Lesotho has goals and achievements that it wants to accomplish in this compact.
Meanwhile, Sophonea announced that the House has made considerable efforts as it has passed two Bills.

The first Bill is the Gender Based Violence Act of 2022 and also an amendment to the Laws of Lerotholi. Sophonea said they have an obligation to see to it that this project succeeds.

He said the expectation is that all the projects under this Compact should be completed by 2029. He said the US expects that the country will promote democracy and uphold the rule of law. The country is also expected to have good governance and be free of corruption.

Sebabatso Mothabeng

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LAA wins another international award

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MASERU – THE Land Administration Authority (LAA) has scooped yet another international award from the European Society for Quality Research (ESQR).

The award was presented to the LAA at a function held in Barcelona, Spain, last month.

The award was for best outstanding business results, best practices, quality awareness and achievement by companies in the regional and global markets.

This is the second time that the LAA has received an international award.

Last year the LAA was honoured with an international award on technology.

The LAA Director General, ’Mataeli Makhele-Sekhantšo, said the LAA was established as an autonomous government body by the Land Administration Authority Act.

She said the objective was to modernise and improve land administration services and to reduce land transaction costs.

“The ESQR awards recognise organisations’ distinctive performance improvement, organisational excellence, customer focus and encourage them to share their best practice, experiences and knowledge with other organisations,” Makhele-Sekhantšo said.

“The recognition is independent assurance for organisations stakeholder and customers and it motivates the organisation employees to strive for sustainable excellence,” she said.

The Board Chairman, Ratšele Ratšele, congratulated the staff of LAA for their hard work.

However, he said as much as the organisation has improved, “there are still some challenges which need to be addressed by the government”.

“The organisation still seeks to extend the issue of licenses in all the places across the country,” Ratšele said.

“The act that regulates estate agents still need to be strengthened,” he said.

He said sectional title deals which distinguish the size of land to be registered still need to be reviewed to allow people who can afford to buy small pieces of land.

Local Government Deputy Minister ’Mathato Phafoli said the government is proud of this organisation since “it fulfills the mandate of the local government for administering the lease holding”.
Phafoli said the administration for the lease is not only crucial for regulating land, but also to boost the economy of the country.

“Land is the crucial treasure which needs to be registered with the LAA so that it can benefit even the coming generations,” Phafoli said.

She said one of the government’s strategic plans is to improve food security.

However, agricultural land is being utilised for industrial purposes, business premises and for household purposes.

“We are worried as to how Basotho will in the coming years acquire food,” she said.

She said immediate action must be taken because Lesotho could fail to grow food for its people.

Phafoli said the government is more concerned about agricultural land which is being utilised for industrial purposes instead of food production.

She said this exposes the country to high risk of food security failure.

Refiloe Mpobole

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ETL flies students to USA

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MASERU – TWO Basotho students are off to the United States, thanks to Econet Telecom Lesotho’s HigherLife Foundation.

A farewell ceremony for the two was held in Maseru on Tuesday.

HigherLife Foundation is a social impact organisation that invests in human capital. It was formed by Econet founder Strive Masiyiwa and his wife, Tsitsi, in 1996.

The Public Relations Officer of Econet Telecom Lesotho, Puleng Litabe, said each year they reserve two percent of their budget for the foundation.

She said they have so far sponsored 524 students ever since the foundation was established in Lesotho in 2011.

“These two students will add up to 18 students who studied in America through the assistance of the HigherLife Foundation since its establishment.”

Litabe said of the over 18 students they have sponsored to study in America, five of them are now working in Lesotho while seven of them are working in the US.

She said one student is working in Canada and three students are in their Doctor of Philosophy studies.

The Econet Chief Executive, Dennis Plaatjies, said HigherLife Foundation sponsored the two students since their high school days at Soofia International School in Leribe.

He said after completing their Lesotho General Certificate of Secondary Education (LGCSE), the foundation took them to Waterford University in Eswatini.

He said the foundation has several programmes with education as the major priority.

He said they assist Grade A students who are vulnerable.

One of the students, Nthati Lehloenya, will be studying at the University of Oklahoma. She said he was raised by a single parent.

Lehloenya said life was not a walk in the park due to financial constraints her family had.

She was lucky to be introduced to the HigherLife Foundation which ultimately changed her life.

“The foundation did not only change our livelihood but it has also impacted our communities,” Lehloenya said.

She explained that while at school she won a M16 000 fund for a community project she was working on at work.

The other student is Mahali Mabesa.

The one will be studying engineering while the other will be studying mathematics and physics.

A parent to one of the scholars, ’Mamahali Mabesa, said in 2012 the financial problems forced her to transfer her daughter from the National University of Lesotho International School (NULIS) to Soofia International School.

She said it was still hard to support her daughter’s education. The teachers realised that her daughter was working so hard and deserved financial assistance.

“They said they could not let this talent go to waste because of our struggle hence they would try all means so that she could be assisted,” Mabesa said.

Meanwhile, Econet Telecom Lesotho yesterday in partnership with Gem Institute Lesotho launched a tree planting campaign for 1 408 apples and peach trees at 16 schools in the lowlands and highlands.

The Founder of Gem Institute, Mpho Letima, said one of their mandates is to encourage the youth to venture into entrepreneurship, technology and agriculture.

She said they have partnered with the school ever since 2016.

Refiloe Mpobole

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LRA’s modernisation project extended to October

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MASERU – A four-year project to modernise the Lesotho Revenue Authority (LRA)’s system which was supposed to have ended in June has been extended to October. The Lesotho Tax Modernisation Project is designed to address weaknesses and target areas for improvement that are linked to the main causes of weak tax administration in Lesotho.

It focuses on improving efficiency and service delivery, increasing Value Added Tax (VAT) compliance, and broadening the tax base. It is also meant to support the LRA to consolidate and deepen reform by focusing on redesigning and upgrading business processes.

It is also meant to develop an enabling legal and institutional framework, introduce modern information and communication technology to increase tax compliance and efficiency in tax administration. It also promotes peer learning and experience sharing with similar national revenue authorities in the region.

The purpose is to strengthen the government’s capacity to raise domestic revenue and provide fiscal space for priority public expenditures including counterpart funding for ongoing operations. The LRA said the project is at 90 percent towards completion.

Speaking at a media briefing in Maseru on Tuesday, the Project Manager, Mokhethi Mabeea, said the project began in July 2018 and it was supposed to end in June this year. They have extended the time to October 2022 because implementation it took longer than expected.

The project, he said, was designed to enhance their services and modernise old systems. Mabeea said they were working on a different scope which includes E-taxation. The E-filing was developed for Value Added Tax (VAT) and Pay-As-You-Earn (PAYE) and deployed for piloting.

“We believe in October it will be up and running,” Mabeea said.

He said E-payment was also developed and under testing while E-registration is under testing development. Mabea said there is the Business Intelligence and Data Warehouse. He said the Business Intelligence was strategically developed and they are still in the process with the strategy which will assist in the implementation stage.

He said Operational Reports and Dashboards were developed and in use. He further said the Data Governance Framework was also completed and it is being operationalised. Mabea said an E-invoicing Solution was established late hence it will be completed around March 2023.

He said they also realised that the staff needed to be equipped with training as technology changes. They included amongst others the Block Chain Technology, special sectors in the financial sector and telecommunications sector, as well as business processes management.

Mabeea said in the Tax Administration Bill that was sent to parliament before it was dissolved two weeks ago. The Income Tax Bill was also sent to parliament while the VAT Amendment Bill has already been considered by both Houses.

Mabeea said that in the category of Small Business Tax Enhancement, they are seeking to treat small and medium entrepreneurs differently in terms of registration and filing of tax. The registration, filing and payment processes have been re-engineered. He said the configuration of the Core Tax Management System is in progress.

He said they are still calling upon all Basotho who are employed to file their returns. He said everyone paying tax should update their registration information. The Digital Service Manager, ’Makhothatso Khanare, spoke of an online rating tool which is still in progress.

She said they had introduced a tool management system in some of their offices to improve the quality of services they offer. She said they had so far achieved a 91 percent satisfaction level.

Khanere said however, they realised that since most of their services are conducted online, the level of satisfaction was not traceable. She said they expanded their rating tool digitally and a new product will be launched next month. She said this will allow all their clients who visit their offices and use the digital services raise their concerns and opinions.

Refiloe Mpobole

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