Lesotho: Fostering Inclusive Enterprise Development

analysis

Lesotho's National Dialogue on Combating Corruption and Empowering Women and Youth

Introduction

Democracy Works Foundation under the EU-funded Project, Putting Youth and Women at the Centre of Inclusive Economic Growth (PYWIEG) and the Financial Services Volunteer Corps (FSVC) under the USAID-funded Programme, Strengthening Anti-Corruption Efforts and Procedures in Southern Africa, recently hosted a National Dialogue in Lesotho. The aim was to provide a vital platform for stakeholders to engage in discussions to promote corrupt-free, inclusive, and responsive enterprise development support services that benefit women and young people in Lesotho and how to approach these efforts differently.

Organised by the Democracy Works Foundation and the Financial Services Volunteer Corps, the dialogue brought together representatives from government ministries, parastatals, Business Development Service Providers (BDSPs), Civil Society Organizations (CSOs), and youth.

Opening Remarks

Ms Tsepiso Nyopa, the Lesotho FSVC Programme Officer, set the tone by underlining the FSVC's mission and commitment to improving access to financial services for Small and Medium Enterprises (SMEs) and advising on public financial management.

DWF Regional Director Dr Augustine Magolowondo emphasised the significance of women in socio-economic development. He highlighted the challenges women and youth face, including regulatory issues and corruption in the business development sector.

"We all know the challenges women and youth face in socio-economic development, and we can find opportunities to change that together. Let our dialogue be a catalyst for open conversations, innovation, collaboration, and sustainable initiatives. In the face of regulatory hurdles, societal norms, and corruption, let us forge a path that transcends barriers, turning our adversities into opportunities to do things differently. Use this platform to network and share insights to build a future where inclusivity and empowerment thrive beyond the constraints of projects and funding," Dr Magolowondo stated.

Keynote Presentation

Ms. Maneo Seekane, an Independent BDSP and Business Coach, delivered a comprehensive keynote presentation outlining the contextual overview of women and youth in Lesotho. She highlighted progress in the legal and regulatory framework but identified gaps, such as implementing the drafted legislation (National Youth Development Bill of 2021) and inheritance reforms. Maneo stressed the need for Gender Transformative Approaches in Business Development Services (BDS) and encouraged youth to leverage technology to promote education by leveraging platforms like YouTube for skills development. She also prompted the establishment of mentorship programs that connect youth with experienced mentors, investors, and key stakeholders to foster learning and networking opportunities.

Insights from District-based Dialogues

The dialogue incorporated insights from district-based dialogues led by Dr Alouis Chilunjika, an Independent Expert from the National University of Lesotho. Discussions revolved around challenges in regulatory frameworks, experiences and lessons from ongoing initiatives, and reflections on how to scale up support for a more inclusive and responsive enterprise development ecosystem.

He stated that there are gaps in the existing frameworks, drawing attention to

  • That there has not been enactment of Legislation based on the National Youth Development Bill of 2021
  • There has not been enactment of the inheritance reforms that (1) repeal section 14(1) of the Laws of Lerotholi 1903, which excludes women and girls from inheritance, and (2) amendment of property and inheritance laws to remove gender discriminatory provisions and enhance the rights of women, making them certain,clear and enforceable
  • The lack of MSME policy and supporting the legislature
  • The need to develop and promote Gender Transformative Approaches in BDS, CSOs and Governance institutions
  • The Youth must leverage the available technology, the internet, and AI to innovate and develop new products.

Concluding his presentation, Dr Chilunjika remarked, "Each person has influence and something they can do within their respective CSOs. Ultimately, it is everyone's responsibility to act for more corrupt-free, inclusive, and responsive BDS services that benefit women and youth in Lesotho."

Panel Discussions

Panellists from various sectors shared their perspectives, addressing challenges faced by BDS providers and entrepreneurs. A youth representative, Ms Tebello Moreboli, Chairperson and Founder of Alleviate Organisation, emphasised the need for organisational development support for CSOs.

The Chief Prevention Corruption Officer from the Directorate on Corruption and Economic Offenses (DCEO, Mr Lefu Ramashamole, acknowledged the prevalence of corruption and encouraged whistleblowing. He urged everyone to report corruption incidents and explained the whistleblowing process. With the positive response from the participants, he further assured that DCEO is doing its best to put measures in place to protect whistle-blowers despite the lack of legislation that protects them.

Ms. Masontaha Masilo, Senior Entrepreneurship Officer from the Minister of Gender, Youth and Social Development, further put a spotlight on the initiatives in BDS undertaken by the government and CSOs and concluded her response with what can be done differently by the government to provide more responsive and inclusive enterprise development.

The Lesotho Chamber of Commerce and Industry (LCCI) Executive Director, Mr Lesei Lesei, underscored the importance of utilising trade agreements for export opportunities, drawing hypotheses from his tenure in his position and role at the LCCI. "I urged everyone in attendance today to take advantage of Lesotho's trade agreements with other countries, such as AGOA, which presents opportunities for various products that can be exported to the U.S. market."

He expounded further, "The LCCI is responsible for disseminating pertinent information to SMEs. However, as SMEs, you also need to play your part in ensuring the use of the available information and compliance with the requirements for export. As the LCCI continues to play its role, I also acknowledge that we can do more."

Key Issues and Recommendations

Key issues identified included:

  • Budgetary constraints within the Ministry of Gender, Youth and Social Development
  • The need for organisational development support for CSOs and youth-led enterprises
  • The challenges in mass information dissemination to citizens
  • The absence of legislation for whistleblowing
  • Political will or lack thereof contributes to a corrupt-free, inclusive, and responsive BDS ecosystem.
  • Lack of political will to implement the National Youth Development Bill 2021
  • The creation of a user-friendly and interactive digital information portal
  • Learning from previous initiatives,
  • Utilising available resources for income generation
  • Fostering regular check-in sessions between CSOs for ongoing collaboration.

Conclusion

Lesotho's National Dialogue was a critical platform for fostering stakeholder collaboration to address tools to enhance business development services, empower women and youth, and combat corruption.

The insights gained, and recommendations proposed have indeed laid the foundation for sustainable and inclusive enterprise development in the country, aligning with the broader objectives of the Putting Youth and Women in the Centre of Inclusive Economic Growth (PYWIEG) as a concerted effort for sustainability in Lesotho's socio-economic progress.

Learn more about DWF and FSVC partnership

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