Matlanyane’s recovery plan

MASERU – FINANCE Minister Retšelisitsoe Matlanyane says the government will soon embark on a massive economic reconstruction and recovery programme in which the private sector will play a key role.

She was speaking as she presented the 2023/2024 budget in parliament on Monday.

Dr Matlanyane said the programme will enhance growth and build resilience through economic transformation from a consumer-based economy to a producer and export-driven economy.

This will be achieved through sizable investments into agriculture, industries that build valued chains to produce jobs, the extractive sector with the aim to enhance beneficiation of Basotho in the exploitation of natural resources.

Dr Matlanyane also said the economic recovery programme will be anchored on the reconstruction of infrastructure and the building of new infrastructure (soft and hard) that will facilitates active participation of the private sector.

She will seek to strengthen governance and accountability in private and public institutions and leveraging on innovative technology for efficiency.

“Private sector development and participation is central in ensuring the reconstruction, recovery and resilience of the economy,” Matlanyane told parliament.

“The role of government is to intervene in ways that crowd-in private investment, thus encouraging growth that exploits the full capacity of our productive potential,” she said.

She said central to economic transformation and diversification are a competitive investment climate, peace and stability, mobilisation and efficient intermediation of savings, technology development and adoption.

She also said a competent and competitive labour force and human capital that is relevant to the needs of the economy, and the effective exploitation of the demographic dividend are important if we are to transform Lesotho’s economy.

She said the road to recovery and growth that produces employment and reduces poverty is anchored on the pursuit and achievement of the restoration of macro-fiscal stability and consolidation of public financial management reforms to entrench fiscal discipline.

“These are critical in rebuilding confidence of local and foreign investors, as well as development partners in our public policy and management,” she said.

Dr Matlanyane said in terms of investment competitiveness in 2019, Lesotho was ranked 122 out of 190 countries, up from 106 in 2018.

“This requires aggressive implementation of the investment climate reform agenda,” the minister said.

“Otherwise, Lesotho will be disadvantaged in attracting the much needed investment in areas where Lesotho has competitive advantages,” she said.

“We are compelled to be forward looking and dynamic and develop futuristic industries that are driven by innovation and technology development.”

“Furthermore, we will build systems and enhance capacity of relevant institutions to fight economic crimes, especially corruption, money laundering and close any potential conduits for terrorism financing.”

Dr Matlanyane said she will focus on enhancing productivity, promoting diversification and value chain development through the use of improved technology and mechanisation, especially in the agricultural and manufacturing sectors.

“We shall adopt appropriate technology and advanced mechanisation including appropriate seed and fertilisers inputs as well as climate smart technologies in agriculture to increase yield of basic grains, legumes, vegetables and deciduous (fruits).”

She said the government will facilitate increased production of meats as well as eggs, fish and milk by farmers to satisfy local demand and process these for export.

The government, she said, will up-scale its production of green and renewable energy, through increased capacity of generation of solar, wind and hydropower, with the view to be self-sufficient in energy and export by participation in the regional power pool.

“In this regard, maintenance of the ’Muela infrastructure is key to facilitating energy access,” she said.

She said the government shall upscale efforts to ensure access to clean water and sanitation for Basotho and further forge alliances with countries in the region to build infrastructure that facilitates transfer and distribution of water to the SADC region.

In this regard, Dr Matlanyane said, the government shall continue to invest in water conservation and catchment management, and management of pollution and the environment at large.

She said the government shall improve institutional arrangements for participation in the extractive industry, particularly the mining sector, to ensure better beneficiation by current and future generations of Basotho in these important resources.

“Tourism and hospitality remain a critical growth sector whose potential is yet to be tapped fully,” the minister said.

“The angelic mountains that envelop the white gold, the flora and fauna as well as the unique culture offer a memorable experience which needs to be offered to the world,” she said.

“We therefore also need to conserve biodiversity for now and for the future generations.”

She said Lesotho is ranked 120 out of 140 countries in terms of infrastructure development, which reflects low national investment competitiveness.

“It is important then to rebuild, rehabilitate and build climate resilient key infrastructure. This initiative is meant to facilitate internal and external trade.”

She said the ICT infrastructure development will be aligned with e-government priorities, opportunities in e-commerce and provision of efficient services.

In this regard, she said, the development of complementary skills and change management are key.

She said exploiting the Demographic Dividend (DD), which is the benefit that can be derived from changing age structure of our country’s population also remains critical for sustainable development.

“Lesotho has a youthful population,” she said, adding that the DD study completed in 2022 has recommended investment in high quality education and relevant skills development programmes underpinning the ability of young people to access and create good quality jobs, continual investment in health, in particular sustained funding for prevention and treatment of HIV/AIDS, and gender inequalities to ensure that the demographic dividend is realised.

Staff Reporter