Business Friday May 25, 2018
12,63
LOTI/JPY
LOTI/EUR
14,77
LOTI/SA RAND
LOTI/GBP
16,82
LOTI/PULA
LOTI/USD
International
Commodities
Exchange Rates
0,11
0.00 1.27
GOLD OIL PLATINUM SILVER
1357,00 70,10 1019,00 17,50
0.16% 1.04% 0,95% 0.25%
CAC 40 Dow Jones FTSE 100 NIKKEI 225
4533.57 18221.25 6986.57 17336.42
0.62% 0.83% 0.10% 0.00%
Eye Monthly Inflation (%) 2017 to 2018
Commercial Banks
Interest rates (/ Annum)
Central Bank
Prime Lending Rate
9.92
Deposit Rates
0.00
Lombard Facility
9.33
Savings Rate
0.84
91 Days
5.33
Call
0.77
Avani rehires 81 fired Sun employees ’MASENTLE MAKARA
T
he 81 Sun International employees who were fired after industrial action in 2014 will be re-instated in July following an agreement between the Government of Lesotho and Avani, the hospitality group which took over former Sun International facilities in Maseru. This was announced at a press conference on Wednesday this week after the government and Avani signed an agreement which would see the former Sun International workers back at work. One of the victims Thapelo Monare told Public Eye: “Our problems started on 22 December 2014 after a dispute with our employer over salary increments.” While some chose to join the strike others opted to grudgingly accept the employer’s offer at the time. “Unfortunately the employer chose not to listen to us but instead decided to lock us out until we accepted what was on offer. The employer said we should leave our work premises until we accepted to take the offer. “We did not agree with that because Lesotho is a sovereign country so, as a result, we could not agree to give away our rights which we are entitled to and that kept us outside work to date.” The workers experienced plenty of challenges and some even died as a result of poverty. “Most of these people are bread winners and it is very unfortunate that some people lost their lives. Surely if workers’ rights were protected we would not be saying this.” Some of the employees’ children had to drop out of school because there was no money to pay school fees, he added. “We are glad with what happened today because these people are going to be able to provide for their families. We applaud this
’MASENTLE MAKARA MASERU - Minister Of Small B u s i n e ss D eve l o p m e n t , C o operatives and Marketing Chalane Phori on Wednesday announced the country will stop importing eggs into the country after realising local producers have the capacity to meet demand. The move is an affirmative action meant to support local egg and poultry farmers. Speaking at the ministry’s headquarters at Fairways Plaza this week, Phori said importing eggs would hamper government’s efforts to grow local entrepreneurs.
The newly renovated Maseru Avani Hotel government because they worked hard to resolve this matter. We tabled our complaints with the past government but they did not listen to us. But this government, through the ministries of finance and trade, were there for us all the way. I wish they could do the same with other workers from other sectors.” “We should also thank the media. It is the norm to cry to media, but when things get settled, we never go back to thank them. We have been addressing this matter on radios, in newspapers and other media platforms. They were there for us from the beginning until today and we are thankful. You are the reason why the government heard us so please continue doing the same with other similar problems.” Among those present was the Minister of Finance, Dr Moeketsi Majoro, Minister of Trade Tefo Mapesela, Avani General Manager Willem Van Heerden and the workers’ union General Secretary Ts’eliso Ramochela. Addressing the media and those present, Majoro said: “I know your journey very well because on May Day 2017, I was busy campaigning and after Ntate Thabane finished
addressing you on that day, he came to me. The first thing we looked at was addressing this issue to make sure that Ntate Thabane’s promise to you is fulfilled. It took us months to deal with this issue and he is very happy that it has finally happened.” Majoro said this was not a very easy task because when they started it seemed to be easy but it became tougher as we worked and other issues which we were initially unaware of came up. “Around January or February, were sure that you would be commencing your work but when we thought we had finished other issues arose. There were also issues with the gambling license, which took months to resolve.” He further said: “There were some cases in the courts of laws and it took some time to withdraw them since we could not work with this issue while there are cases in the courts.” Majoro encouraged workers to work peacefully with the management when conflicts arise to avoid job losses. Mapesela said: “On the first July you are going back to your work but, according to the law, temporary
employees should be notified though they are not happy that they are being fired. The 81 workers were compensated M2000 each which Mapesela said might seem significant just because it is a lump sum but when divided by the months they have been out of work, does not amount to much. “It has been a long journey to get here and we thank God though unfortunately some have lost their lives during negotiations,” Mapesela said. Mapesela noted that to avoid the same incidents in future, they should be notified on time so that they do not go through the same process again. The trade minister urged people not to misuse their positions and stop sabotaging others or accepting bribes. Heerden also weighed in, disclosing such incidents were not good for business. “This situation was not good for the business and you as individuals and the community as well. With the assistance from the government we eventually managed to come up with an amicable solution to the industrial action. In terms of
Egg imports to be banned The decision comes af ter discussions between the minister and local farmers. Principal Secretary for ministry Lerata Pekane noted: “Poultry farmers met with the minister and showed that they are producing enough eggs to supply the whole country. So currently they say their eggs get rotten because they produce them in large numbers and they keep them for a longer time before they are bought because
of the competition with imported eggs.” Pekane said the minister visited some farmers produce more than 200 trays per day. This means such a farmer could sell about M6000 per day only if their eggs would be bought. “The farmers are capable of producing eggs that could feed the whole country but they fear that if they produce more they would run a loss because their eggs will
get rotten therefore there is need for this to be regulated to allow business in Lesotho,” Pekane said. “We are producing more eggs therefore there is a need to restrict the eggs imported into the country to widen our business. With other farmers I can be able to supply the whole country because I produce more than 500 to 600 per day on my own. I could even supply a retailer like Shoprite on my own,” said one of the eggs and poultry
moving forward there’s a process we need to go through by finding each other again. A lot of things has changed including the business as compared to three and half years while you were still under the Sun International banner. The company has since changed its name, management, and lots of positions. “We continue to invest in tourism and we need to build friendship between with our shareholders being the government, and LNDC. Last year was the first time that dividends were declared from this company and those monies can be utilised for reinvesting in the tourism sector. As Avani we are going to continue investing in tourism, not only in Lesotho but elsewhere in Africa,” Heerden said. He further disclosed there was need for lots of further training as many things have changed after the hotel group changed hands. Since Avani is a different company he urged the workers to learn about the company which had brought many changes, especially in the casino where for instance there is a new system which is very different from the old system.
farmers, Tsatsi Mokuoane. He further said if the government can implement this, it would open the market for them and they would grow thereby creating jobs. He further said even the layers should not be imported as they have enough in the county already. Mokuoane, together with his father, owns a company called Mokuoane Poultry Farm. “Besides we do not know where these imported eggs are being produced or how long they have stayed before they are imported so they may not be good for Basotho’s health.”
2
Public Eye
Friday May 25, 2018
Business Eye News
Markets ‘on hold’ as Sino-US spat dissipates MAKING MONEY MAKE SENSE LEONARD NYAMBUYA
“
On hold” is the term driving global equity markets. Global markets closed higher on the first trading day of the week as trade tensions between the US and China dissipated for a moment. Trade tensions between the two countries kept a lid on global stocks last week. It was a global rally as Asian and European markets recorded solid gains. The trade spat between China and the United States is on hold according to Treasury Secretary Steven Mnuchin. Both countries have decided to work towards a long-term agreement; in other words, there may be no solution to this at all and both countries may just continue to trade with each other under the same old terms. It seems investors were not on hold as they went on a stockbuying spree. It did not matter that the can was just kicked down the road. The mere fact that the US and China seem willing to keep talking was enough to make investors think that a full-blown trade war can be avoided. US markets closed higher with investor sentiment also being boosted by news of a deal making activity. The Dow Jones industrial Av e r a g e ( D J I A ) j u m p e d 298.20 points to 25,013.29. Boeing, Caterpillar and United Technologies - big exporters likely to benefit from easing trade tensions - were best performing stocks in the index. Wall Street also got a boost amid a slew of deal making news. General Electric will merge its transportation business with Wabtec, a rail equipment maker, in a deal worth $11.1 billion (about M139); GE shares rose two percent. The fundamentals remain attractive for further upside in equities globally in months ahead as long as progress persists in trade talks between US and China. However, investors will keep an eye on the planned steel and aluminium tariffs by the US on the European Union by month-end. In London the FTSE 100 closed in record territories on Monday as gains on the index ga t h e re d m o m e n t u m , w i t h investors starting casting their gaze on heady heights. I nve s to r s e n t i m e n t wa s buoyed by the news that brewing US/China trade war is “on hold” – well specifically, the previously
announced tariffs have been put on the back burner – after the two countries agreed on a framework to reduce America’s deficit with its global sparring partner. The easing trade tensions between US and China is not the only factor sending shares higher in the UK. The re-emergence of Brexit challenges is putting pressure on the pound sterling, which on Monday fell 0.6 % against the dollar trading below $1.341 for the first time in 2018. A weaker pound tends to benefit exporting firms listed on the FTSE 100. Asian markets closed last week slightly in the positive territory, boosted by dissipating ge o p o l i t i ca l te n s i o n s . T h e momentum was carried over into the new trading week as most indexes recorded gains across the board. China promised to cut car import duty to 15 percent from the current 25 percent. The reduction follows what appears to be a rapprochement between the US and China over trade between the world’s two largest economies. Currencies The ZAR weakened against its major peers last week. For the week, the USD strengthened 4.1 percent against the South African Rand to close at R12.7643. The Euro was 2.8 percent higher at 15.0270 and the GBP was 3.8 percent stronger at R17.1997 for the week. The USD strengthened against its key counterparts last week, supported by a rise in the US Treasury yields. The benchmark 10-year note yield broke above 3.1 percent for the first time since 2011 last week. While the two-year yield traded at its highest level in nearly 10 years. On the data front, US retail sales advanced in line with market expectations on a monthly basis in April. The NAHB housing market index recorded a more-than-anticipated rise in May. Furthermore, industrial production climbed higher than market expectations on a monthly basis in April, marking its third straight month of gains. On the flipside, the US MBA mortgage applications recorded a decline for the sixth straight week during the week ended 11 May 2018. Additionally, housing starts dropped more than market forecasts on a monthly basis in
April. Moreover, initial jobless c l a i m s c l i m b e d m o re t h a n anticipated in the week ended 11 May 2018. The EURO weakened against the USD last week, amid political uncertainty in Italy. Data indicated that Eurozone’s current account surplus narrowed to the lowest level in nine months in March 2018. Further monthly industrial p ro d u c t i o n ro s e l e s s t h a n anticipated in the same month. Meanwhile, GDP rose at par with market expectations on a quarterly basis in this quarter of 2018. Moreover, consumer price index advanced in line with market expectations on an annual basis in March 2018. Separately, Germany’s economy grew at a slower than expected pace in the first three months of 2018, marking its lowest rate since the third quarter of 2016. The GBP fell against the USD on the background of positive investor sentiment. Data revealed that UK’s unemployment rate remained unchanged at a 42-year low in the first quarter of 2018. Additionally, average weekly earnings climbed for a second month in a row in the same period. The UK government borrowing for the first month of the new financial year was lower than expected. The deficit for 2017/18 now stands at two percent of GDP – the smallest deficit as a share of GDP since 2001/2. The reduction has been attributed to improving public finances than forecasters expected because the economy slowed less than feared after the 2016 Brexit vote. South Africa South African markets ended lower last week, weighed down by losses in banking and retail sector stocks. Astral foods tanked 10.7 percent despite reporting a significant increase in its half year of 18 earnings. Bankers, Standard Bank Group and Barclays Africa Group declined 9.5 percent and 8.6 percent, respectively. Retailers, Foschini Group and Truworths International dropped 8.3 percent each. Group Five and Bidvest Group declined 9.6 percent and 9.4 percent respectively. On the flipside, technology company DataTec rallied 23.2 percent and healthcare company, Ascendis Health surged 14.2 percent. Retailer, Steinhoff International Holdings rose 12.5 percent. Further, paper and packaging company, Sappi advanced 11.0 percent, after it reported a rise in its 2018 2 quarter earnings. The JSE All Share index declined 1.1 percent to close at 57,804.33.
On the flipside largest loses were recorded in Dawn properties down 17.72 percent OK Zimbabwe, down 16.00 percent, and Mashonaland, down 13.47 percent. Trades are expected to firm across the board while Econet, and Delta will likely be swinging sideways. Total market capitalisation gained 1.46% this week to close at 10.57 billion. Yield to date is +5.94% Zimbabwe Trading in heavyweight counters was relatively firm last week. Innscor, Econet and Delta, gained 3.63 percent 0.37 percent and 0.01 percent respectively. The week’s top gainers were Ariston up 33.93 percent, Bindura up 28.21 percent and PPC, up 16.70 percent. O n t h e f l i p s i d e l a rge s t loses were recorded in Dawn properties down 17.72 percent OK Zimbabwe, down 16.00 percent, and Mashonaland, down 13.47 percent. Trades are expected to firm across the board while Econet, and Delta will likely be swinging sideways. Total market capitalisation gained 1.46% this week to close at 10.57 billion. Yield to date is +5.94% Zambia Yields on the southern African c o p p e r p ro d u c e r ’s 2 0 2 7 Eurobonds rose to 10 percent for the first time in almost 18 months. That has exacerbated the pain for the holders: with losses of 11 percent this year. Zambia’s dollar securities are the worst performing in a number of Emerging Markets USD Sovereign Bond Index. The LuSE All Share Index gained 0.02 percent. Commodities Gold prices declined last week, as strength in the US Dollar dented demand for the safe haven asset. Expectations that the Federal Reserve will lift U.S. interest rates again next month added to downward pressure on gold. Higher US rates tend to boost the dollar and push bond yields up, making non-yielding assets like bullion less attractive and more expensive for holders of other currencies. G o i n g f o r wa rd , m a r ke t participants will closely watch the FOMC minutes, weekly mortgage applications, Markit manufacturing and services PMI along with initial jobless claims, Michigan consumer sentiment index, durable goods orders and house price index for further direction. Crude oil prices advanced last
week, amid continued worries over potential disruption to global crude supplies. The international benchmark broke through the $80 per barrel for the first time since November 2014 last week before falling to around $78 per barrel later in the week. Investors anticipate more due to supply concerns, at least in the short –term. Brent has gained around 17 percent since the start of the year. Additionally, the US energy Information Administration (EIA) reported that crude oil inventories dropped by 1.4 million barrels last week. Meanwhile, the American Petroleum Institute (API), reported that crude oil inventories rose by 4.9 million barrels in the week ended 11 May 2018. Copper prices traded in the negative territory last week, as the US Dollar strengthened and amid worries over slower demand in China, the top copper user. Among other precious metals, silver and palladium were both little changed at $16.47 an ounce and $989.70 an ounce respectively. Platinum rose 0.1 percent at $897 an ounce, after making a fresh low for the year last week. Investors will be focusing on the developments around the US/ China trade discussions, and a lot of attention will be on the impact of surging oil prices on inflation. We believe more money can still be made in commodities and stocks going forward. NB: Currently there are no listed securities on the Maseru Securities Market (MSM), however there are ongoing discussions which could result in listings. Katleho Securities, (Members of Maseru Securities Market). For more information on Capital Markets Contact +266 27002418, 53230700, 68730055 lnyambuya@katleho.co.ls, securities@katleho.co.ls, www.katleho.co.ls Plot Number 12292-972 Mabelebele Street, Katlehong, Maseru, Lesotho
Ministry of Small Business Development, Co-operatives and Marketing
Public Eye
Friday May 25, 2018 3
Business Eye News
Connect your Home or Office effortlessly
Free Router Simple plug and play set-up Free installation Internet speed of up tp 150Mbps
M-Pesa POS is not just a technologic Vodacom Lesotho launches Broadband innovation, it’s a social innovation Connect; Fixed Wireless solution. In an effort to improve the experience of our
Restaurants and Petrol Stations to run a one
customer’s lives, but continue
Vodacom Lesotho as the leading Fixed Wireless solution. A world standard trade in the digital world. The same value amazing value to small busine month promotion where customers stand M-Pesa merchants and customers, we are telecommunications company boasts technology that affords customers the is also derived by a connected home that corporates, international orga to win weekly and prizes when they “Payalways with informed, happy tocoverage introduce M-Pesa of sale most simple, unparalleled across the Point country, convenient affordable always in touch, and always government ministries throug M-Pesa and above, customers an easy and simplecorporate payment process best(POS), network, and unmatched connectivity solutiPOS”. on for Over their small to equipped to handle some of the typical family social investment. Through innovati ve payments medium businesses or homes. With research for children for such b service where who pay with M-Pesa POSthis also standneeds a includingpayment where customers can now make products, services and programmes; solution, the customer gets a ready use at selected school work andable learning, malemployees’ value from s to payopti their chance to win a FREE fulltomeal using their M-Pesa account in aVodacom completely Lesotho aims to solve Basotho’s everyday simple plug and play set to enjoy the best connected smart appliances and security, beneficiary grants through Mrestaurants or FREE Full tank at selected seamless, worry free and secure manner. problems beyond just communication and connection speeds on our superior LTE and many other benefits. Vodacom Lesotho petrol stations. connectivity. With over 20 years in Lesotho, coverage. With the ability to connect up to 30 Enterprise team is poised to continue to and above the many making payments only devices concurrently, this solution sufficiently provide innovatiOver andThis withnew contiway nuedofunmatched investment ve connecti vity soluti ons forben M-Pesa, customers have Selected participating customers to enter their M-Pesaaccommodates andrequires confidence in the region, Vodacom the needs of SMEsMerchants and those the home and the business and to lead themade Lesotho was awarded an upgraded license for itof a home. digital transformati onas ofwell society. True to our in time, as experienced Restaurants PIN to confirm their transaction, making Selected participating Merchants converged services certi its statusand as a mantra that thesafety “future is exciti ng Ready? and wellbeing as a resu o Restaurants Galito’s (industrial area) faster and easier forfying customers Total Telecommunicati onsand Provider. er businessneeding starts here.” the Executi ve Headand of PioneerBett to carry cash. o o Barcelo’s (Maseru mall) merchants to make receive cashless In his statement, Galito’s Enterprise Business Unit, Mr. Tsepo Ntaopane o o for Stadium Fast foods (Please specify payments. Barcelo’s Being able to service both consumers and said, “The need constant connectivity This offer is available at Vodacom Shops bringingsupport more Basotho location) o forStadium Fast foods businesses with its wide range of solutions and good speed and affordability for nationwide. OurBydedicated desk for into financialonsystem, has m To make a payment, a merchant will key insmall and medium businesses, cannot be tailored for their specific needs, Vodacom this service is available MondayM-Pesa to Friday Lesotho has identiamount fied a need tothe create more overemphasized. This solution bridges the during businessfinancial hours on sector +266 52212241. more vibrant a Petrol Stations the payment and customer’s Petrol Stations focus for businesses, ons and businesses are able to More details can be increased found at any time ondeepe our and financial Engen (Pioneer) M-Pesa account organizati number into theirpublic POS gap to ensure o small Engen Pioneer Auto Services sector. The telecommunicati giant has rely on affPuma ordable technology to ply their website www.vodacom.co.ls years, a simple idea has revolu (Ha-Thetsane) device, after which the ons customer will receive o Puma Thetsane Filling Station thus reprioritized and set up a dedicated way we transfer money, pay fo a pop-up message prompting them to key in Enterprise Division to cater for this important purchase goods and services theirsegment; PIN to validate andofconclude the market and engine growth for transactions. This cuts thepayment. Lesotho economy. Asdown a firstthe step,steps the involved company happyand to unveil soluti on that Year after year, the role played by M-Pesa in to oneisquick easy astep from the addresses the growing needs for connecti vity the lives of its customers has widened as customer. In addition, this new innovation for will smallreduce to medium businesses and homes in Basotho embrace the platform for a greater errors that occur when #MPesaChangingLiv the digital age. number of services. payments are made to unintended In the first of many to come roll-outs, the merchant till numbers. Vodacom Lesotho Enterprise Business team The service remains pervasive in the daily has launched the Broadband Connect;
Give your business or home the best fixed wireless connectivity
As part of the M-Pesa POS launch, we have partnered with selected merchants; mainly
lives of Basotho due to the various services it offers, as it has not only changed
Better Business Starts Here…
The future is exciting.
Ready? Ministry of Small Business Development, Co-operatives and Marketing
4
Public Eye
Friday May 25, 2018
Business Eye News
The business silver-lining in ‘Brand Mafeteng’ colours we could find out that this music can bring us together. Even speaking ill of each other in Sesotho is not a bad thing per se. Remember even at weddings people sing provocative songs which is not meant to start a fight. We even have different clans but the important thing is that we are Basotho so differences should not be a source of conflict. Aspects of our music have even been converted into other genres to entertain. We’ve got artistes like Brenda Fassie who was a global icon who just mixed her songs with Basotho music and many more artists have done so.
‘MASENTLE MAKARA
M
AFETENG – The mere mention of Fa m o m u s i c and Mafeteng district evokes memories of bloody conflict and unending rivalry but, as the famous analogy of a halfempty glass of water has it, the same glass could be perceived as half-full if one chooses to be an optimist. The Ministry of Small Business Development Co-operatives and Marketing seeks to pursue Famo music as a blessing, which could boost the economy of Mafeteng district and not the curse that it has always been viewed as. Lerata Pekane, the principal secretary in the ministry, believes the Proudly Mosotho Buy Local Campaign could ride on the back of Famo music and he encourages the buy local national initiative to be replicated within districts. O n T u e s d ay t h i s we e k , the campaign was introduced in Mafeteng through a press conference. Public Eye had an opportunity to speak with Pekane, who was one of the key speakers, about Famo and Mafeteng blankets on the sidelines of the gathering. PE: How can Famo music be turned into a business? LP: Absolutely! The first question that comes to mind when you get to Mafeteng is what the district and its people are known for. Mafeteng people are surely known by their blankets, nice music and fighting sticks and lots of talent. That alone sells a lot. We have a music shop at Manonyane centre in Maseru and our greatest product is Mafeteng music. Famo is a very big industry, especially in South Africa but their market is Basotho. And that business is more advanced than many other businesses because it is already
exposed. It is there on YouTube, it wins awards and is a very unique genre. PE: Currently South Africa hosts successful famo music awards but is there enough being done to promote and boost Famo music within the country? L P: T h e re wa s t h e Mo r i ja Arts and Cultural Festival, for example. We had a conversation with the minister of tourism where we agreed to have the Lesotho Chapter following a tourism INDABA. Inside it would be attire exhibitions and music
performances while outside there would be small business exhibitions for food stalls and others. Therefore we agreed to collaborate and test this concept and grow it. PE: If Makaota (Mafeteng people) can take this seriously, how would it benefit them? LP: They make a living for their families. There are some collaborations, like Ntate Apollo Ntabanyane is a perfect example, and he has got his signature dance and way of walking. This portrays our culture and we preserve
Vodacom helps LCS repair young lives In pursuit of its mandate to invest in education, Vodacom Lesotho has partnered with Lesotho Correctional Service to support the education of three young offenders. Through this partnership, the three youths who might not have had the opportunity to begin school this year, have now confidently joined formal education and are all continuing with their studies at Moshoeshoe II High School. Vodacom Lesotho Foundation has committed financial support towards school fees and uniforms for the said students, while Correctional Service will support
the young people by helping them change their attitude, their thinking and behaviour through intensive mentoring, advice, advocacy and targeted specialist support. All the four offenders come from underprivileged homes, some of whom are orphans that have demonstrated a strong desire to change their lifestyle and leave behind their criminal tendencies. Renewable annually on the basis of academic excellence, the partnership will see the learners, now in Form B, throughout their tenure in high school. Commenting on the partnership, Vodacom Lesotho
Specialist: Communications and Foundation Ms Thato Mochone said: “We are delighted to contribute positively to the growth of young people, as we jointly prepare them to take positive roles in society, and afford them the ability to flourish through adversity. “As a responsible corporate citizen, we understand that we have an important role to play in assisting the government to address issues of national importance. We therefore support and are fully committed to driving sustainable initiatives which can help alleviate some of the Lesotho’s most pressing social
language within music so this way people get encouraged to buy their music while making money in the process.
PE: So do you see economic growth and future in Mafeteng through music and blankets? LP: A lot. People in Mafeteng are some of the most patriotic in terms of identity. In addition, they seem to do well in different spheres of life. For instance, in football they are doing a magnificent job. Even in business, Mafeteng people are very organised as entrepreneurs and they have managed to transcend the ordinary in this area. As business people they unite to support football and they have their own television (Bantu television). There is Mafeteng swag; they’ve got their signature and the structure of their way of singing is unique. So through buying and selling, from printing the brand, improves the district economically.
PE: You say everything can be turned into an opportunity. How can blankets, which seem to bring about conf licts in Mafeteng, benefit Makaota? LP: Everything can be turned into an opportunity. Blankets are just a differentiation; you are either short, tall, light or dark and mostly these are the factors that are used to draw us apart. But if we can look beyond blanket
PE: Any advice for Makaota? LP: Business is my hobby. I love business, I sleep, wake up and drink business and it is something I believe if we were to value and recognise it could set us free from our way of thinking because once you are an entrepreneur, believe me your way of thinking becomes different. Your understanding gets to another level and you are able to take risks.
challenges. “We support this positive impact through our focused social investment activities aimed at using ICT to improve access to education, address community health challenges, combat gender-based violence and advance economic empowerment.” Mochone further noted. “We achieve this through partnerships with reputable organizations, government, industry leaders and other technology partners,” she added. Commenting on the partnership, Director Rehabilitation, Mrs Lineo Khalema said: “As Lesotho Correctional Service (LCS) we value our partnership with Vodacom with regard to young offenders’ scholarships. The young
offenders are below the age of legal responsibility and most of them are orphans and commit offences due to poverty. “Vodacom came in at the right time because upon release they were going back to the same environment of poverty. Vodacom has offered a helping hand by providing them with scholarships. This is going to have a positive impact in their future,” Khalema noted. LCS’s mandate is to correct the unbecoming behaviour of inmates through guidance and counselling, promote the spirit of reconciliation between offenders and victims as well as promote literacy and numeracy skills and eventually facilitate reintegration of former inmates into their communities.
Ministry of Small Business Development, Co-operatives and Marketing
Public Eye
PUBLIC EYE MAY 25, 2018
Friday May 25, 2018 5
Workplace&Careers
9 Advert News
WE’RE RECRUITING Lesotho National Development Corporation (LNDC) is a national implementing agency for the industrial and commercial development of Lesotho established in terms the LNDC Act.20 of 1967(as amended). It is a parastatal of the Government of Lesotho mandated to initiate, promote and facilitate both domestic and foreign investments to create jobs and increase income for the households. To effectively deliver on this mandate, the Corporation has embarked on two major change processes, namely the change in strategic direction and the change in structure of the organisation. LNDC has now completed its new five (5) year strategic plan to be availed to the public in the coming days .Simultaneously, the Corporation is realigning its structure, and the following four(4) Strategic Business Units (SBUs) have been identified. 1. Investment and Trade Promotion Agency: “To brand and position Lesotho as a preferred investment and sourcing destination through promotion, facilitation and aftercare.” 2. Development Finance Institution: “To stimulate economic development and private sector growth through appropriate financing and enterprise development interventions.” 3. Property Development and Management: “To deliver commercially sound, development-enabling commercial, industrial and Agro-industrial infrastructure. 4. Corporate Services: “To provide cross-cutting support services to other SBUs.” These services include Legal, Human Resources, Finance, IT/IS Support, Research, Risk LNDC now invites applications from suitably qualified and experienced Lesotho nationals for the following positions: POSITION 1. General Manager LNDC Development Finance Reporting The position reports to the LNDC Chief Executive Officer Term of contract Three (3) year fixed term contract. Renewable on outstanding performance results. Qualifications and Experience The candidate should possess at least a postgraduate degree in Development Finance, Investment Banking, Financial Economics, Financial Risk Management or Business Administration or related. A minimum of 10 years relevant experience is required, at least 5 of which should be in executive management. Key Performance Areas • General administration of the development finance institution business unit • Development and Management of LNDC Project Preparation Facility(PPF) • Development and management of Equity Fund and Equity Portfolio • Development and management of LNDC Debt section Knowledge, skills and behavioural attributes • Governance and Business strategy, Risk management, Sustainability, Performance • Finance, including project finance, structured finance, trade finance, agricultural finance, impact investing) • Operations (including product development and model validation) • Ability to manage multiple priorities and multiple demands to accomplish tasks in accordance with established requirements • Ability to establish and maintain effective working relationships with peers, superiors, residents, community service agencies, and the public • Ability to prepare clear concise reports and make appropriate recommendations within scope of responsibility. • IT/IS applications eg, E-views, MATLAB, SAS, advanced Excel,etc • Measured, accountable, results driven candidate with integrity POSITION 2. General Manager LNDC Investment and Trade Promotion. Reporting The position reports to the LNDC Chief Executive Officer Term of contract Three (3) year fixed term contract. Renewable on outstanding performance results. Qualifications and Experience The candidate should possess at least a postgraduate degree Investment and Trade, Marketing, or Business Administration or related. A minimum of 10 years relevant experience is required, at least 5 of which should be in executive management. Key Performance Areas • General administration of the investment and trade promotion business unit • Lesotho National Brand management • Investment Promotion(FDI) • Investment Promotion(DI) • Trade Facilitation, Export Development and Promotion • Aftercare Services Knowledge, skills and behavioural attributes • Governance and Business strategy, Risk management, Sustainability, Performance • Finance(including project finance, structured finance, trade finance, agricultural finance • Operations (including investment outreach missions and trade promotion road shows ) • Risk Management(including strategic risks facing Lesotho, reputational risks,etc) • Ability to manage multiple priorities and multiple demands to accomplish tasks in accordance with established requirements • Ability to establish and maintain effective working relationships with peers, superiors, government, community service agencies, private sector ,media and development finance institutions • Ability to prepare clear concise reports and make appropriate recommendations within scope of responsibility. • High degree of fluency in English
• Strong presentation skills • IT/IS applications, in particular PowerPoint • Decisive, results driven candidate with integrity POSITION 3. General Manager Property Development and Management Reporting The position reports to the LNDC Chief Executive Officer Term of contract Three (3) year fixed term contract. Renewable on outstanding performance results. Qualifications and Experience The candidate should possess at least a postgraduate degree in Real Estate Management, Civil Engineering, Project Management, Construction, or Business Administration or related. A minimum of 10 years relevant experience is required, at least 5 of which should be in executive management. Key Performance Areas • General administration of the property development and management business unit • Property development • Property management • Stakeholder management, especially tenant relations Knowledge, skills and behavioural attributes • Governance and Business strategy, Risk management, Sustainability, Performance • Finance, including property finance, investment or property portfolio valuations • Property operations (including capacity planning, maintenance planning, and facilities management) • Ability to manage multiple priorities and multiple demands to accomplish tasks in accordance with established requirements • Ability to establish and maintain effective working relationships with peers, superiors, residents, community service agencies, and the public • Ability to prepare clear concise reports and make appropriate recommendations within scope of responsibility. • IT/IS applications including GIS • Decisive, results driven candidate with integrity Position 4. General Manager LNDC Corporate Services. Reporting The position reports to the LNDC Chief Executive Officer Term of employment Three (3) year fixed term contract. Renewable on outstanding performance results. Qualifications and Experience The candidate should possess at least a postgraduate A Chartered Accountant(CA) or postgraduate in Business Administration with undergraduate in accounting or finance or related. A minimum of 10 years relevant experience is required, at least 5 of which should be in executive management. Key Performance Areas General administration of Corporate Services business unit • LNDC’s information systems • LNDC’s financial management • LNDC talent management • LNDC planning and research • LNDC enterprise risk • LNDC legal and corporate secretariat Knowledge, skills and behavioural attributes • Governance and Business strategy, Risk management, Sustainability, Performance • Ability to manage multiple priorities and multiple demands to accomplish tasks in accordance with established requirements • Ability to establish and maintain effective working relationships with peers, superiors, government, community service agencies, private sector, banks, regulators and development finance institutions • Ability to prepare clear concise reports and make appropriate recommendations within scope of responsibility. • High degree of literacy in financial management • Strong presentation skills • IT/IS applications, in particular PowerPoint • Analytical, accountable, measured candidate with high degree of integrity Remuneration and Benefits The Corporation offers a competitive remuneration package in line with qualifications and experience. Submissions Interested, suitably qualified and experienced candidates should hand-deliver or email their applications accompanied by a detailed CV with names and addresses of three referees by Friday 8th June 2018, on or before 12 noon to: The Chief Executive Officer Lesotho National Development Corporation Development House Block A, Level 9 Kingsway Road Private Bag A96 Maseru Lesotho Email: recruitment@lndc.org.ls and copy to ce@lndc.org.ls Enquires: adam@lndc.org.ls ,or (+266 2231 2012) NB:Only short-listed applicants will be contacted.
Ministry of Small Business Development, Co-operatives and Marketing
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Public Eye
Friday May 25, 2018
News Business Eye LAWRENCE KEKETSO
M
aseru - The A f r i c a n Development Bank (AfDB) and the United Nations Industrial Development Organization (UNIDO) signed a Memorandum of Understanding (MoU) this week to step up collaboration to boost Africa’s industrialisation. The new agreement facilitates the Bank and UNIDO cooperation on joint activities of shared interest in areas such as agro-industry development, circular economy, eco-industrial parks, investment in innovation and technology, enterprise development, trade and capacitybuilding, and access to finance, among others. The MoU is in line with objectives set in the Bank’s High 5 strategy, the African Union’s Agenda 2063, the Third Industrial Development Decade for Africa (IDDA III), the UN’s Agenda for Sustainable Development, as well as the G20 Initiative on Supporting Industrialization in Africa, the two entities said in a statement. “The Bank launched in 2016 its Industrialization Strategy for Africa 2016 - 2025, which was the outcome of collaborative work with UNIDO and the United Nations Economic Commission for Africa. The signing of the present MoU is key to our Strategy’s implementation,” said African Development Bank President Akinwumi Adesina, adding: “The Bank already benefits enormously from UNIDO’s expertise in developing policies, programmes and knowledge tools which support our member countries to industrialise.” In 2017, the Bank allocated
Managing Director at UNIDO Philippe Scholtès
UN, AfDB in bid to step up industrialisation US$1.2 billion (about M14 billion) to industrialize Africa – one of the Bank’s High 5 development priorities – mostly to projects for financial sector operations. “Achieving Africa’s industrial potential will not happen by chance; strong partnerships such as the one our two organisations have now formalized are key,” said Philippe Scholtès, Managing
Director at UNIDO. “This partnership will create significant opportunities and facilitate our work together towards the operationalisation of IDDA III (2016–2025)”. The two entities have already initiated working level collaboration including within the framework of UNIDO’s flagship Programme for Country
Partnership (PCP) model, which helps synchronise development efforts and mobilise resources to support countries in accelerating industrialisation. The statement, released jointly by the two entities, said the Bank and UNIDO recently undertook a joint mission to Morocco as part of the initial development of the PCP and will
continue exploring cooperation opportunities in the ongoing PCPs in Senegal and Ethiopia. Collaboration has also been initiated for the establishment of staple crop processing zones in a select number of African countries. The Memorandum was signed by Adesina and Scholtès in Busan, Republic of Korea, on the sidelines of the Annual Meetings of the Boards of Governors of the African Development Bank Group, held under the theme of “Accelerating Africa’s industrialization.” African industry ministers, representatives of regional Member States, development partners and private-sector executives, attended the signing ceremony.
Liberty Life launches innovative savings product ‘MAPALO NKHELOANE MASERU - Liberty Life Lesotho recently launched a savings product, Education Legacy Plan at a local hotel here. The launch is in response to insurance regulators and the market’s need for more accessible, innovative and differentiated solutions that make financial freedom possible for Basotho. Makhakhe Maliehe, managing director of Liberty Life Lesotho, said the company has listened to the needs of the people and wants to make a meaningful cont r i b u ti o n to t h e so c ioeconomic development and future growth of the country. “As parents or caregivers, we encourage our children to dream big and we all know that any big dream depends on a good education. “However, sometimes nothing
seems bigger than the task of providing for that education. We know that it is more than just the tuition fees to be paid; you also need to think about stationery, uniform, school trips, and projects. “ W h i l e o u r gove r n m e n t provides free primary education, families are responsible for paying for secondary school education. The financial strain of paying these supplies is often too high for the family to sustain,” Makhakhe said. Makhakhe added that the company pondered about what would happen in an unfortunate event that a parent gets retrenched and can no longer continue paying premiums towards his or her child’s saving fund. Liberty Life Lesotho then decided to develop a “groundbreaking” savings plan. The plan not only makes it easy to
Makhakhe Maliehe Liberty Life Lesotho MD save for the child’s education but the product also takes into consideration the f inancial circumstances that can be faced by parents which could interrupt
their plan to save for these dreams. “Customers can get our Education Legacy Plan from as little as M200 per month.
This presents an opportunity in encouraging savings even among low-income individuals. We know that our customers want the best for their children and families beyond their current status and of course they want to improve their children’s lives to be better than theirs,” he said. He added: ”Parents must consider complementing their savings plan with our comprehensive and innovative Life Plan to have peace of mind knowing that their children’s education can be taken care of when you can no longer do so due to a physical impairment or death.” Makhakhe emphasised that Lesotho is ready for this kind of a savings solution for they pride themselves in the skills and experience they have in the organisation which allows proper design of their products.
Ministry of Small Business Development, Co-operatives and Marketing
Public Eye
Friday May 25, 2018 7
Business Eye News
Africa in bid to recover stolen assets
A
buja - Former British prime minister Dav i d C a m e ro n two years ago was caught talking about an anti-corruption summit and calling Nigeria “fantastically corrupt”. But meanwhile his country ranks among the top destinations for stolen assets from African countries. Nigeria and ex-British colonies in Africa hope to change that by working together to repatriate billions of dollars in offshore accounts from London and beyond. At a regional conference held last week in the Nigerian capital of Abuja, the heads of anticorruption agencies from around Africa met to discuss strategies to overcome bottlenecks in the recovery of stolen assets. “Concerned about the heavy losses that Africa suffers as a result of illegal transfers of proceeds of corruption and crime out of Africa,” the anti-corruption representatives vowed last Friday to “strengthen cooperation and partnership in the tracing, recovery and return of assets”. They further pledged in a joint statement to encourage African countries to commit to greater corporate transparency and called for investment in anti-corruption agencies to “trace, recover and return assets.” ‘Fight this tsunami’ Commonwealth secretary general Patricia Scotland said Africa is losing tens of billions of dollars annually to corruption,
Former British prime minister David Cameron urging the anti-graft tsars to lead the “fight against this tsunami”. “We all know that the difference between the money we need to deliver the hopes and aspirations (of our people).... and the money we have, is the sum equivalent to that which is egregiously siphoned off by corrupt practices,” Scotland said. Nigeria, the continent’s largest oil producer, is ranked among the most corrupt countries in the world by anti-graft group Transparency International. Nigerian President Muhammadu Buhari has promised to continue his war against corruption as part of his 2019 reelection campaign. Buhari’s anti-graft chief Ibrahim Magu claimed earlier this year that his agency has recovered over 500 billion naira (about M15 billion) in illicit funds. But the government’s fight against corruption has been
Nigerian President Muhammadu Buhari accused of being politically motivated. ‘Mafia of leaders’ Commonwealth adviser Roger Koranteng told AFP that leaders at the summit want a regional approach to recovery of stolen assets. “There is strength in unity. If you go as a single country, you will have a problem because the countries outside the African countries are together,” he said. Sustaining the momentum however may be difficult. Ghana’s independent prosecutor Martin Amidu said the will to tackle graft comes in ebbs and flows on the continent. “For me, for the past decades, Africa has had a mafia of leaders who speak of corruption as if they are against it but internally didn’t attempt to fight it,” Amidu said. Still, countries stand to gain huge amounts of money should they streamline asset recovery.
Nigeria announced in April it received over US$300 million (more than M3.5 billion) from Switzerland as part of money seized from the family of exdictator Sani Abacha, who ruled the country from 1993 until 1998. Buhari said the money will be spent on a welfare scheme targeting the “poorest of Nigerians”, in a country where poverty is widespread and unemployment is rampant. Yet it is difficult to trace how the repatriated money is being spent, with some critics voicing concerns that stolen money gets repatriated to Nigeria only to be looted again. “There is a need for robust oversight mechanisms as well as continuous monitoring of the use of recovered assets to ensure that they are used properly and efficiently for development outcomes and poverty alleviation,” said Marie Chene of Transparency
International in a 2017 report. ‘Global effort’ Greater global attention on the issue is helping reforms, say anticorruption activists. “It took the publication of the Panama Papers to expose many government officials with offshore accounts,” said Debo Adeniran of the Coalition Against Corrupt Leaders lobby group. “The decision to sign mutual legal assistance with several countries is helping the (Nigerian) government in its loot recovery efforts,” Adeniran said. In January, Nigeria signed a deal with the United Arab Emirates (UAE) on asset recovery. Buhari’s anti-corruption sweep and banking reforms are acting as a deterrent, Adeniran added. “When you steal and cannot keep the money in the banks, you will stop stealing,” he said. - news24
Lesotho Post Bank Digital Channels Launch
Ministry of Small Business Development, Co-operatives and Marketing
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Public Eye
Friday May 25, 2018
News Business Eye
How consumers can beat shrinkflation
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hrinkf lation, an unpopular term among consumers, is the process of items shrinking in size or quantity while their prices remain the same. Manufacturers engage in this practice to make money. Angelique Ruzicka has some tips on how to beat them at their own game Manufacturers often want to increase their prices, but don’t want to do so in an obscene way that may lead to them being labelled “the bad guys”. But if they are facing margin pressure, they have to f ind solutions. So, what do they do instead? They reduce the size or the number of portions while keeping the packaging the same. Alternatively, they use less of the more expensive ingredients and puff up the product with cheaper contents. This results in manufacturers paying less to produce an item while the consumer pays the same price or more. T h e p a yo f f i s t h a t t h e consumer does not notice this shrinkage as the packaging remains the same – at least that is the hope. This practice is referred to as “shrinkflation”. E X A M P L E S O F SHRINKFLATION Many companies have been found guilty of shrinkf lation, i n c l u d i n g C a d b u ry wh i c h , under the American Mondelez International conglomerate, announced in 2015 it would change the recipe of the much loved British Cadbury Crème Egg (often eaten at Easter time) by replacing the Cadbury Dairy Milk chocolate with “standard
cocoa mix chocolate”. Then, much to the ire of chocolate lovers, the company also reduced the number of eggs in a box from six to five. Various other products in the UK whose portions have been reduced in size or number, while maintaining the same price, include Birds Eye Fish Fingers, Maltesers, Morland Old Speckled Hen Ale and Morrisons Milk Bottle Sweets, to name but a few. South African consumers have been victims of shrinkflation too. Last year, it was reported that Coca-Cola bottles had been reduced from 500ml to 440ml, but the price of the bottle had remained the same. It was claimed that CocaCola was trying to reduce its customers’ sugar consumption. In the past we’ve also seen toilet rolls, coffee, crisps and washing powder get the shrinkf lation treatment. While this practice is not against the law, it definitely leaves a bitter taste in consumers’ mouths and, while you may want to complain bitterly, only a few companies have kept the original size and the same price. WHAT CAN YOU DO? Boycott: If you see your favourite brand of chocolate or crisps with less inside, you don’t have to buy the item. Buy a competitor’s product or cut out the product entirely. It may even be healthier to do so and cheaper if you bear in mind the sugar tax set to be introduced in April this year is almost upon us. If you absolutely must have a particular brand, buy it after the celebrated day – like Easter – as
shops reduce the product prices. Downscale: Martin Lewis, the founder of UK consumer website moneysavingexpert.com, often encourages his followers to engage in a “downshift challenge”. Do not be a brand slave! Simply go for a cheaper brand and stick to it. Look around you: Do not just
consider the products that are at your eye level in the store. They are often more expensive, while the cheaper products are packed lower down in the hopes that you won’t notice them. Shop online: Consider shopping online to keep the costs down. T h i s wa y, yo u wo n ’ t f e e l pressured to tally up prices while
About millennials and the workplace
MPHO LEHOBO
(Mind Liberation Psychology Consultancy) The typical millennial is currently between the ages of 18 to 34. They range from starting their university journey and developing their own start-ups to entering the job market and even occupying high ranking positions.
However, a vast number of them are also unemployed due to factors like lack of work experience, an already saturated job market or a mismatch in previous jobs. This is happening everywhere despite millennials being described as the up-and-coming, in-demand generation that has the potential to take corporations to new heights. One may thus argue this is due to lack of understanding of how the work ethic and mind-set of a millennial operates. . Millennials are often said to be over-confident and even obsessed with climbing the corporate ladder in record time. This often sends them job hopping or venturing into self-employment as they seek high ranking jobs that come with
tough issues and higher pay rates. It is for this reason that millennials are regarded as more ambitious than other generations. This, of course, comes with pros and cons. O n one hand, this drive serves as fuel for bringing to the table game-changing ideas that organisations seek in their employees. Having grown in the digital age, for example, as opposed to being trained on it like previous generations has seen some of the greatest technological innovations being born by them. However, on the other hand, due to lack of work experience millennials are more likely to make costly mistakes. Graduate programmes and internships are therefore essential
in refining the brilliant minds of the future. In the Harvard Business Review, Nill Taylor makes the insightful observation on how millennials value the chance to join companies that make a difference and bring out the best in them. This is due to them wanting a good work/life balance as much of their work they can do online while engaging in other activities out of the workplace. Studies argue millennials are more than ever motivated by personal values and aspirations. Some of these personal values include relationships, recreational activities and job security hence opting for self-employment which caters for both personal values while still guaranteeing a healthy
you’re in the store. It will also be easier to compare prices as your favourite item at a competitor’s sto re i s j u st a c l i c k away. Don’t shop if you are hungry: Experts reckon we buy more if we’re hungry because we tend to think with our stomachs and not with our brains. So, only shop after you’ve had a meal.- news24
income. Companies have since attracted the younger generation by offering benef its such as flexible work hours and multiple assignments that require the millennial employee to travel abroad for exposure. Furthermore, the involvement of the millennial employee in corporate social responsibility initiatives that they can closely relate to also plays a huge role in creating a sense of purpose. Combining work with activities that speak to one’s values further adds to the work and life balance many millennials seek. Although often misunderstood, the millennial generation portrays huge potential in changing the game in the world of work. Adaptation to the way in which their work ethic and mindset works could prove to be the saving grace of companies that seek to take the world by storm.
Ministry of Small Business Development, Co-operatives and Marketing