The Ministry of Trade & Industry recent statement regarding the delayed implementation of Section 34 of the Business Licensing and Registration Act and Regulations (Amendment 2021) raises serious concerns about the government’s commitment to promoting economic empowerment and inclusivity for Basotho traders.
Section 34, which outlines provisions aimed at safeguarding and promoting the economic interests of indigenous Basotho by reserving certain items or sectors exclusively for their participation, is a crucial step towards achieving economic equity and ensuring that the benefits of development are distributed more fairly across Basotho society.
However, the Ministry’s admission in its press briefing of delayed implementation and the need to review the regulations due to government policy direction is deeply concerning… The Ministry’s reliance on government policy that prohibits the retrospective implementation of regulations means that businesses already licensed to operate in reserved sectors will not be affected, thus undermining the intended purpose of Section 34.
The directive to review the 47 reserved business items and possibly withdraw others raises questions about the government’s commitment to promoting indigenous Basotho businesses. Instead of ensuring the full and effective implementation of Section 34, the Ministry’s actions suggest a willingness to compromise on the economic empowerment of Basotho traders in favor of existing businesses.
While the Ministry claims to be working with a Task Team comprising of Business Associations and Government Ministries to review the regulations, the delay and uncertainty surrounding the implementation of Section 34 are unacceptable. Basotho traders have long awaited the economic empowerment promised by Section 34, and any further delays or compromises are a disservice to their aspirations.
Lesotho’s private sector, called upon the Ministry to expedite the review process and ensure the full implementation of Section 34 without further delay.
Lesotho Tribune sought comment from the principal secretary of Ministry of Trade, however no response was received at the time of publishing this story.
