By Neo Kolane
The Lesotho Labour Council (LLC) has maintained that the country’s economy will remain stagnant as long as the government has “business in business”.
LLC secretary general Paul Sematlane this week said Lesotho’s economy was not growing because it was in the hands of government.
There was need for the government to promote a favourable climate to boost private sector to create jobs, he said.
LLC members include; the Progressive Association of Lesotho Teachers, Independent Democratic Union of Lesotho, Lentsoe la Sechaba Workers Union, Construction, Mining, Quarrying and Allied Workers Union, Bahlanka Liberation Union, Lesotho Wholesale and Catering Union and Construction and Mineworkers Union.
Sematlane said it was also imperative that the government, business and labour come together to improve the investment climate in the country.
This would go a long way in encouraging new local and foreign investors to boost efforts to create jobs, he noted.
His call comes in the wake of massive job losses in the clothing and textile industry. According to the LLC, approximately 20, 000 workers have lost their jobs since 2019. About half of these were retrenched this year alone, with more expected to be sent home packing.
The sector, which is the second largest employer after the government, continues to perform poorly largely owing to declining orders from the United States, the major importer of Lesotho’s apparel.
Devastating effects of the Covid-19 pandemic are also still being felt as desperate local firms close shop or lay off employees for months on end hoping that the industry will gradually pick up. But this is unlikely, experts say.
Local companies recently painted a gloomy picture of the industry and expressed fears the job losses are likely to continue as there is no end in sight to the current challenges.
Russia’s invasion of Ukraine in February 2022 has also worsened the textile industry’s quagmire in the past two years as orders dwindle further due to lack of demand for Lesotho’s apparel.
Sematlane on Wednesday told this publication in an interview that it was high time the government ensures that there are investor-friendly policies.
“The government should have flexible platforms so that investors can come and set up in the country,” he said.
Sematlane maintained that Lesotho’s economy had remained stagnant over the past years because of policies that do not promote a conducive environment for business.
The government should discard such policies.
“The economy is where it is today because of policies. We need new ones that can help boost the economy,” he said.
Sematlane is of the view that using economic strategies like International Labour Organisation (ILO) Recommendation 204 on transitioning from formal to informal economy may be a positive step to attract more direct investment into the country.
The transition from formal to informal means the private sector will be given a conducive platform to create jobs thereby boosting the economy.
He told a press conference on Tuesday that the LLC was also concerned that the indefinite 10pm to 4am curfew imposed by the government may have a negative impact on the country’s already fragile economy.
“There are some employees who work night shift and they’re having problems going to and from their workplaces because of the curfew,” he said.
He added that they were also concerned by court delays in resolving labour disputes. This worsened the plight of the country’s already struggling workforce.
“The delivery of justice in the labour court has been terribly hampered by persistent electricity supply cuts. Hearing of matters has now stopped as a result.
“This state of affairs has affected both public confidence in our courts as they seek justice.”
The Lesotho Chamber of Commerce and Industry (LCCI) on its website states that the government places high priority on private sector development in order to attain its macroeconomic objectives.
This strategy forms the primary source of growth and employment creation, the organisation says.
Commenting recently on the huge job losses in the country, the Deputy Secretary of the National Clothing and Textile and Allied Workers Union (NACTWU), Tšepang Makakole, said it was sad that workers were being retrenched yet there was no visible effort made by the government to see to it that the struggling factories are stable.
Makakole said the desperate situation in the clothing and textile industry could only be reversed if new investors come in.
There were many factories in Butha Buthe nearing completion but they did not have water and electricity, he pointed out.
“The question is, how will they work without such vital utilities?” he quizzed.
Makakole also said the government had in January this year promised to reopen factories that were closed in Maseru in two months but this never happened.
“They (government) spoke about it at the beginning of the year but now its four months and we’re still waiting,” he noted.
He added that the government should assist in sources markets for local products beyond South Africa and United States. The LCCI adds that the government also has a responsibility to address any institutional and regulatory constraints that impede growth.
