Tough new business regulations in limbo

MASERU – THE government could be having doubts about its plans to implement regulations restricting foreigners from owning businesses in sectors reserved for Basotho.

The Businesses Licencing and Registrations 2020 ring-fenced 47 businesses to be exclusively owned by Basotho whose ancestry can be traced back to at least generations in Lesotho.

The regulations provide that naturalised Basotho and foreigners can only own minority shareholding in the 47 businesses.

The Ministry of Trade then announced that it was giving foreigners operating those businesses a grace period of up to August this year to wind down their operations and make way for Basotho.

The plan was that as the August deadline approached the minister would stop issuing licences to the foreign-owned businesses. The idea was that by August there will be no foreigners running those reserved businesses.

But with three months before the deadline, the implementation of those regulations could be stuttering.

The ministry’s spokesperson, Liahelo Nkaota, told thepost this week that “our biggest fear as the ministry is kicking people out of the sectors and then no one enters”.

“As the ministry we think Basotho might not be ready to take over these sectors,” Nkaota said.

“Our fear is that they do not have enough funds and they do not show interest by not attending workshops and training sessions.”

Nkaota said the ministry had a national roadshow where it met with traders and trade unions to inform them about the new regulations.

She said the ministry informed traders on which businesses will be owned by Basotho.

Nkaota said some small associations of traders from different districts wrote to the ministry showing that they had people interested in taking part in the selected sectors.

“It was not stated in those letters the number of people that wanted to join under schedule 16, the type of business they are interested in and the amount of capital they have,” she said.

“Basotho should show interest….they should hold and attend workshops about sectors they want to take part in.”

The Lesotho Chamber of Commerce and Industry (LCCI) and the Private Sector Foundation of Lesotho (PSFL) however said locals are ready to take over those businesses.

“Basotho can run such sectors and one thing is that these businesses operate in Basotho’s premises, which means these foreigners are renting Basotho’s premises to run their businesses,” said Nkeane Motseki, the chamber’s chairman.

“Basotho have the means even though it is not easy for them, unlike these foreigners that get money from their governments.”

“Basotho are ready to take over these small sectors. Even when we had invited the ministry we told them straight that we will run those sectors.”

“We even cited examples to show where we have invested as proof to show our interest and passion.”

Tholoana Lesenya