Maseru takes aim at foreign-owned firms

Lesotho has restarted a plan to act against foreign-owned businesses, and to pressure SA companies to work via Basotho-owned distributors. The kingdom created new regulations in 2021 that could see foreign-owned businesses expelled, but has been moving slowly on implementation for fear of paralysing the smallest economy in the region. News24 reports that a list of 47 business types, from general dealers to barbers, are reserved for locals under those rules. Trade & Industry Minister Mokhethi Shelile on Friday told the National Assembly that an inspection in Maseru in June found that the overwhelming majority of businesses in areas reserved for locals were in the hands of foreigners. ‘A total of 106 businesses were inspected and 80 belonged to foreigners. The foreign-owned businesses account for 90% of the jobs in this sector,’ he said. In Maseru, Chinese and Indian owners dominated. Shelile said the government had urged South African firms, mostly in the retail sector, to enlist local distributors. The government wants to see about 800 SA businesses do such deals, covering 80% of imported goods. The government also wants to end the practice of locals being employed by third-party agents in SA, who then provide their services to SA companies required to employ Basotho people.