PRIME Minister Sam Matekane says his Public-Private Dialogue (PPD) initiative is a crucial mechanism for fostering private sector growth and improving Lesotho's business climate.
He said the collaborative platform would help address corporate challenges while aligning with governmental objectives.
This he said during the second session of the PPD held at Avani Maseru this week.
The PPD is a structured dialogue framework which is intended to address the shortfalls that the country is faced with in terms of sustainable development, quality education as well as youth unemployment, among others.
It is set to tackle several pressing issues including reversing the decline in investments, reducing bureaucratic obstacles in the entrepreneurship ecosystem, improving government efficiency through better coordination, and enhancing the overall investment climate.
It was launched in February this year through the Ministry of Trade, Industry and Business Development with the support of the World Bank.
The Lesotho Chamber of Commerce (LCCI) as well as the Private Sector Lesotho Foundation (PSLF) represent the private sector in the platform.
The premier reiterated the government's commitment to enhancing the country's economic performance.
Mr Matekane praised the business community for their role in job creation and economic growth, acknowledging the importance of the ongoing collaboration.
"The PPD provides a consistent platform for addressing policy, regulatory, and implementation issues promptly, as I mentioned during its launch in February 2024. Regular, informed, and evidence-based conversations will be critical to our success," Mr Matekane said.
He called on all stakeholders to embrace the PPD as a tool for mutual benefit, where corporate interests are balanced with the broader needs of the country, including those of workers, government agencies, and society at large.
Mr Matekane also highlighted the importance of understanding the diverse goals and challenges of each stakeholder through the PPD. This, he said, would lead to well-considered strategies for addressing community and economic needs.
"Policy development is a complex process with varying impacts on all involved. The PPD allows us to identify issues and develop policies that genuinely improve the investment climate in Lesotho."
Mr Matekane stressed the need for ongoing, interactive communication to ensure effective implementation of policy initiatives. He pointed out that businesses were more likely to comply with government regulations when they understand the rationale behind them.
"The PPD helps prevent the cycle of lobbying and reform reversals by establishing checks and balances and providing a comprehensive perspective on what is best for the economy. Regulatory impact assessments are essential for determining the best policy options for our economy."
He cited the example of wage increase decisions made without sufficient objective assessment, which have contributed to job losses in the textile manufacturing industry.
"The government and business sectors must share a common vision and purpose, encapsulated in our motto, 'E tla re tsoalla namane e tsehali', meaning 'it will yield fruitful results'."
Minister of Trade, Industry and Business Development, Mokhethi Shelile, echoed the Prime Minister's sentiments, expressing hope that more forums would promote a culture of cooperation, communication, and shared accountability. He identified the lack of inclusive, transparent, predictable, and effective laws and regulatory processes as a significant barrier to improving the investment climate.
"While the government has made significant strides in improving the business climate, such as in business licensing, registration, and infrastructure -- there is still much work to be done. The PPD has already advanced the Investment Climate Reform Agenda (ICRA), guided by a diagnostic assessment of Lesotho's investment climate.
"The Investment Climate Action Plan (ICAP) outlines specific actions to support both foreign and domestic investments, aligning with the Second National Strategic Development Plan (NSDP II) and global best practices," Mr Shelile explained.
He highlighted seven key performance areas of the ICAP, including the creation of a regulatory framework, improved access to finance, and enhanced infrastructure and trade facilitation.
Mr Shelile urged all stakeholders to work together with purpose and commitment to achieve the necessary changes in Lesotho's investment climate. He pointed to global evidence that transparent, inclusive, predictable, and effective rules and regulations can drive business growth, attract investment, and create jobs.
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The Millennium Challenge Corporation (MCC) chief executive officer, Manana Phalatse, spoke about the role of the MCC in supporting Lesotho's economic growth through the Health and Horticulture Compact, signed in May 2022. She said the compact would benefit the entire nation by investing in market-driven horticulture, strengthening the business environment, and improving the health system.
Ms Phalatse said the government was committed to enacting reforms that support the compact's success, particularly in areas such as land and water rights, worker safety, gender equality, and working conditions. She stressed that overcoming barriers to economic inclusion for women, youth, and rural poor was central to the compact's initiatives.
In her closing remarks, Minister of Finance and Development Planning, Retšelisetsoe Matlanyane, underscored the importance of collaboration in achieving Lesotho's economic goals.
"We all want what is best for Lesotho, even if we have different ideas about how to get there," Dr Matlanyane said.
