Connect with us

Lemohang Rakotsoane

MASERU – Letšeng Diamonds CEO, Mazvivamba Maharasoa, has pledged to support small, local businesses only if they are ready to provide quality services and goods at competitive prices.

Maharasoa was speaking at a business forum that discussed the problems hindering Lesotho’s economic growth on Tuesday.

She said it is important for Basotho businesspeople to genuinely collaborate in order to access bigger opportunities.

She urged them to move away from charging exorbitant prices trying to make millions with a single deal which forces potential clients to cross the border to buy the same services and goods at affordable prices.

The Letšeng Diamonds boss said if Basotho form joint-ventures even the big tenders can be broken down into what the entrepreneurs can be able to provide.

“For instance, I can divide my tender of 200 litres of petrol per week and have each business supplying with ten litres so that everyone can have a slice of the cake,” Maharasoa said.

She added that it is crucial for locals to understand that reliability plays a huge role in the efficiency of a business.

Speaking at the same forum, the Central Bank of Lesotho Governor Retšelisitsoe Matlanyane said locals seem to be greedy and are not supportive of each other.

“We tend to want to keep everything for ourselves and fail to share amongst us. It is as if one wants to eat the whole cake alone, without realising that if we share we will also be relieving ourselves of a tax burden,” Matlanyane said.

“The more businesses there are the more places the government will have to collect tax from but the fewer there are the higher the tax rates will be especially now that the SACU revenue is continuing to decline.”

Matlanyane said if producers could collaborate they would be able to supply Letšeng with 200 bags of cabbage a week as they would grow their cabbages at different times to ensure capacity and consistency for a year.

She urged Basotho to support each other and to stop being greedy. She also advised the youths not to shy away from venturing into agriculture as it is a sector with a lot of potential.

Matlanyane pleaded with producers to produce more in order to decrease the high import bill that is becoming unsustainable.

She mentioned that though the economy is faced with a lot of challenges with cohesive conversations and by supporting each other there is a lot that can be done to grow the economy.

“If we wait for someone to do something for us we might wait forever,” Matlanyane said.

She said a private sector-led economy is imperative for job creation and growth of the economy.

“We talk about a private sector-led economy but we do nothing, there is high unemployment among our youth and we need to create jobs so let us work as a team,” Matlanyane said.

Chaba Mokuku, the Private Sector Competitiveness and Economic Diversification’s Project Manager, said there are several investor climate reform initiatives being taken to try and level the ground for the private sector so that it can perform to its potential.

Mokuku said the reforms are not expensive when one looks at the benefits that will be reaped after they are implemented.

He said there are several challenges facing the reforms, like lack of political will and limited contribution of relevant stakeholders.

Dr Timothy Thamae, a Chemistry and Chemical Technology senior lecturer at the National University of Lesotho, said as a country “we tend to focus on the roof first and concentrate on the foundation later and as a result we do not see growth”.

Thamae indicated that there are a lot of brilliant ideas at NUL that can be translated into viable businesses but due to lack of funding those good ideas only end up on paper.

He said research plays a very important role in coming up with innovative ideas.

“We are appealing to those who can be able to invest to help and invest,” Thamae said.

He proposed that the playfield be levelled to get support for research, incubation, infrastructure, markets and funding.

Continue Reading
Advertisement

Business

LEC to switch off households over debts

Published

on

MASERU – The Lesotho Electricity Company (LEC) will from Tuesday next week begin switching off clients who owe it money.

The LEC issued a seven-day ultimatum to all customers who owe it on Tuesday last week. The deadline ends on Monday.

It is expected that the LEC will begin switching off households that have defaulted.

The state-owned power company, however, is not going to touch any government department or business entities that owe it on grounds that they are in payment negotiations.

The LEC move comes barely two weeks after it cut electricity supplies to the Water and Sewerage Company (WASCO) thus causing it to fail to pump water to communities countrywide for more than two days.

The LEC says it is owed close to M200 million by government departments, businesses and individuals.

The LEC spokesman, Tšepang Ledia, told thepost that the government and the businesses will not have their electricity cut because they are in negotiations.

“We are in negotiations with the government and businesses and hopefully they will pay,” Ledia said.

“We advise the ordinary people to pay their debts before the 20th of March 2023 or else we cut the services,” he said.

The LEC says it is running short of funds for its daily operations.

In December last year the company increased power tariffs by 7.9 percent on both energy and maximum demand charges across all customer categories for the Financial Year 2022/23.

Last week the LEC boss, Mohato Seleke, said postpaid consumers and sundry debtors owe the company M169.4 million.

He said unless the debtors pay he will be unable to buy electricity from ’Muela Hydropower Project, Eskom in South Africa and Mozambique’s EDM.

This, he said, could cause serious load shedding in the country and could be devastating for businesses.

Seleke said the LEC spends M630 million monthly to buy electricity.

“If postpaid consumers do not settle their debts this could prevent the LEC from being able to buy electricity which can lead the country to encounter load-shedding,” Seleke said.

Seleke said collecting debt from government department ministries was a challenge as there is an understanding that since LEC is a state-owned company, it will continue supplying government agencies with electricity and they will settle their bills when they have funds to do so.

Seleke said the LEC has lost M21 million to vandalism during this financial year.

Relebohile Tšepe

Continue Reading

Business

Bumper payout for former mineworkers

Published

on

MASERU – AT least 11 316 current as well as former mine workers are set for a bumper payout after Tshiamiso Trust began disbursing the first billion Maloti to workers who are suffering from silicosis and tuberculosis.

The payment comes two years after Tshiamiso Trust began processing claims for the historical M5 billion settlement agreement between mineworkers and six gold mines in South Africa.

Speaking at the payment announcement in Maseru last week, the Trust’s CEO, Lusanda Jiya, said it has been two years since they officially began accepting claims.

“Our people come to work every day with the mission of impacting lives for the better, and the first billion rand paid out to over 11 000 families is just the beginning,” Jiya said.

“We know that there is no compensation that will ever be enough to undo the suffering endured by mine workers and their families,” he said.

“However, we are committed to deliver our mandate and ensure that every family that is eligible for compensation receives it.”

Jiya said the Trust is limited both in terms of the time in which they can operate, and the extent to which they can assist those seeking compensation.

Broadly speaking, the eligibility criteria include among others that the mineworker must have worked at one of the qualifying gold mines between March 12, 1965 and December 10, 2019.

Secondly, living mineworkers must have permanent lung damage from silicosis or TB and deceased mine workers representatives must have evidence that proves that they (the deceased) died from TB or Silicosis.

Tshiamiso Trust has a lifespan of 12 years, ending in February 2031.

Over 111 000 claims have been received to date, through offices in South Africa, Lesotho, Botswana, eSwatini, and Mozambique.

The Trust is working with stakeholders in these countries and others to mobilise its efforts and expand operations.

The history of silicosis in South Africa goes back to the late 1880’s when the first gold mines began operations.

The gold was stored and locked in quartz, a special rock that contains large amounts of silica.

Crystallised silica particles can cause serious respiratory damage if inhaled.

In the earlier days of gold mining, dust control, health and safety standards and the use of PPE (personal protective equipment) were not as advanced as they are today.

Tshiamiso Trust was established in 2020 to give effect to the settlement agreement reached between six mining companies.

The companies are African Rainbow Minerals, Anglo American South Africa, AngloGold Ashanti, Harmony Gold, Sibanye Stillwater and Gold Fields.

The settlement agreement was reached and made after a ruling by the Johannesburg High Court as a result of a historic class action by former and current mineworkers against the six gold mines.

Justice for Miners is a coalition of interested parties in the mining sector launched at the Nelson Mandela Foundation in Johannesburg in 2020.

The Johannesburg High Court approved the setting up of the Tshiamiso Trust to facilitate payment by the companies to affected miners.

Keith Chapatarongo

Continue Reading

Business

Farmers cry over cost of livestock feed

Published

on

MASERU – Lehlohonolo Mokhethi is a farmer who has been running a successful poultry business, thanks to a small loan he got from a local bank.

He now has 300 chickens.

He says his vision is to rear 5 000 chickens by 2025 and employ 30 youths. But he is now grappling with a new challenge: the ever increasing cost of chicken feed.

That is threatening the viability of his business.

“The biggest challenge is that food prices increase every day, feeding is expensive,” Mokhethi said.

“It is quite difficult to make profit in business if each and every day food prices increase. Today I am buying a bag of food with a certain amount then the next day the price has increased,” he says.

“Our customers fail dismally to understand that food has increased and the Chinese are taking our market because they sell at a low price thus I run at a loss.”

Last week, a top attorney in Maseru who is also a prominent farmer, Tiisetso Sello-Mafatle, called a meeting for farmers to discuss these challenges.

She says the government must regulate the prices of livestock feed.

That is critical if the farming business is to succeed, she says.

Attorney Sello-Mafatle says farmers must come up with a structure for livestock feed prices which they would present to the government for gazetting.

“We should state our regulations and give them to the government to make everything easy for both parties because we cannot wait for the government to make regulations for us,” Sello-Mafatle says.

She adds that “farmers should be bullish about what they want and never have fear endorsing new things”.

“I will not be challenged or cry (because of) what life throws at me but I will cry when things are not happening the right way,” she says.

Mafatle says farmers need to know who they are and know the capabilities they have.

“This will help a farmer in becoming the best in any field they are in once they are confident about themselves,” she says.

Karabo Lijo, another participant, said they have to influence the cost of inputs in agriculture, especially livestock feed.

“We have to go back to cost-price analysis where as farmers we are able to derive the selling price and the break-even point in our production,” Lijo said.

“We can also derive the stable or constant mark-ups on our products,” he said.

“We need to do research to increase the ability to produce byproducts which are likely to have the longest shelve life,” he said.

The meeting urged farmers to diversify their products by introducing such things as mushroom farming. They said mushrooms can grow very well in Lesotho due to its favourable climate.

The farmers also demanded that there should be regulations on how land can be sold or borrowed in Lesotho.

Tholoana Lesenya and Alice Samuel

Continue Reading

Trending