ROMA – MADE-in-Lesotho Cooperative (MILCO) has been given the green light to operate as a chain store that sells goods and services in Lesotho.
This follows engagements with the Ministry of Small Businesses, Cooperatives and Marketing.
It is worth mentioning that MILCO is intended to sell products only made in Lesotho.
MILCO, which only sells products made in Lesotho, is incubated under the National University of Lesotho (NUL) Research and Innovation Hub.
Many say the move has come at an appropriate time when Basotho-owned products are being overshadowed by imports, thereby making “Made-in-Lesotho” seem inferior.
Most of the products made in Lesotho are struggling to compete on the local market due to fierce competition from imports, lack of marketing strategies and Basotho not being acquainted with local products.
Market watchers said MILCO could be a stepping stone to re-igniting pride in local products among Basotho.
Makuena Lesia, co-founder and CEO of MILCO, bemoaned the lack of appreciation for local products among Basotho.
She said despite “great initiatives” by entrepreneurs in Lesotho to produce quality products, imports continue to enjoy preference on the domestic market.
“The premise for the formation of MILCO is to acknowledge and treasure products that are made in Lesotho,” she said.
“There are abundant products made in Lesotho but they are almost completely overwhelmed by sister products from other countries when it comes to consumption.”
Many Basotho advertise their locally made goods on social media, while the NUL Research and Innovation Hub regularly posts new innovations by current and former NUL students and staff.
“You can just imagine the huge number of products out there from Lesotho that are crying out for a market,” said Lesia, adding that they decided to form MILCO to get all “Made in Lesotho” products under one roof.
She said MILCO is on the verge of opening an outlet at one of the busiest trading centres in the capital, Maseru.
“MILCO is a four-in-one store. Firstly, it is going to be a physical store. It will also be an online store, a wholesaler and a marketing store,” she said.
“Our first pop up store is being established at Sefika Complex and it’s about to open soon. We are also hoping to open branches in all other nine districts around the country in the near future,” she said.
MILCO has begun the process of gathering “Made in Lesotho” products from different business setups across the country.
“We are getting scores of incredible products that we never thought existed in the country,” she said.
“People will be shocked that there are several alternative products made in Lesotho for common imported goods that people buy as part of their groceries. There is quite a wide range of these products produced in Lesotho,” said Lesia.
She said it is better to import some raw materials that are unavailable in the country to produce goods in Lesotho.
“For instance, there is no cotton production in the country but there are many clothing items that are being produced in Lesotho using cotton fabric. For as long as the finished product is made in Lesotho, then that is what MILCO is looking for,” she said.
Besides electronics, Basotho entrepreneurs have proven their mettle in producing various products that are up to international standards. Their biggest challenge has been poor packaging that diminishes the appetite of consumers when the goods compete with imported ones on shop shelves.
“In almost all categories of products you can think of, except gadgets like laptops and cell phones, Basotho have come in large numbers to register their products to be offered for sale,” said Lesia.
There are products like stationery, food and washing detergents to mention a few, she said.
For regulatory purposes, all food products and detergents are taken to the NUL Faculty of Science and Technology where they are tested for approval.
Suitable branding and packaging are what most made in Lesotho products are not good at.
The NUL Research and Innovation Hub is tasked with ensuring that the products are in mint condition for them to be traded by MILCO.
Products that are substandard are not rejected. Instead, the producers are given guidance by the university on how to improve their work to meet required standards.
She said Basotho producers seem enthralled by the MILCO initiative.
However, the door is still closed for Basotho who are producing products outside the borders of Lesotho.
“We have had calls from Basotho who are living outside Lesotho and are making products there. Unfortunately their products at the moment are not going to be considered as they are not made in Lesotho,” said Lesia. “We are for now strictly concerned with products which are produced within the country.”
Since MILCO is a cooperative, every Mosotho who wishes to join is allowed to own shares by paying a monthly share capital of M100.
“Any Mosotho who is above the age of 15 can begin to buy MILCO shares and pay a minimum monthly share capital of M100 and they should have bank accounts through which their contributions would be made. Small children can join MILCO through their parents for as long as the parents have Lesotho identity documents,” she said
The law that governs cooperatives in Lesotho only allows citizens to own shares so non-Basotho are not allowed to buy shares in MILCO.
To encourage online activity, MILCO has launched a website where people can register in order to be able to buy straight from the internet. MILCO will also be reachable via different social media platforms, while people can make physical consultations at the NUL.
“A lot has been done to make sure that people can buy MILCO products at their own convenience and anytime. Our website is up and running and anybody can begin to register to be able to buy online,” she said.
She said they are still working “on a few logistics arrangements” on distribution.
The vision is to ensure MILCO goes international, said Lesia.
“What is significant about MILCO is that we aim to be a force to reckon with in Africa by making sure that Made in Lesotho products make a mark on the continental market,” she said.
MILCO wants to penetrate international markets and eventually operate in other countries, she said, adding that they “want to make sure that these products are of utmost quality so that we can establish a good reputation”.
MILCO, she said, is going to cause a stir among Basotho “in a manner that is going to change how they perceive local productions”.
“The landscape of Lesotho’s productivity is going to change for the better and this would in turn harness appropriate distribution of wealth in the country and bridge the gap between the rich and the poor,” she said.
“Knowing that there is a market for their products, Basotho within the country are now going to be motivated to work harder and not limit their production for subsistence,” she added.
Lesia urged Basotho to support MILCO once it starts operations.
“Local producers should not hesitate to bring their products for consideration. We are accepting all products made in Lesotho and Basotho entrepreneurs should not be reluctant to offer their goods or services to the cooperative,” she said.
Calvin Motekase