Business Friday May 18, 2018
International
Commodities
Exchange Rates
LOTI/USD
12,08
LOTI/JPY
LOTI/EUR
14,56
LOTI/SA RAND
LOTI/GBP
16,37
LOTI/PULA
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 Commercial Banks
Interest rates (/ Annum)
Central Bank
182 Days
Prime Lending Rate
9.92
5.50
Deposit Rates
0.00
Lombard Facility
9.33
273 Days
5.57
Savings Rate
0.84
91 Days
5.33
363 Days
5.35
Call
0.77
Govt plugs leaks in wool and mohair trade MORDEKAI MUSUNDIRE
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he government has moved to c u rb t h e age - old hemorrhaging of the economy in the wool and mohair sector by gazzetting new regulations guiding the marketing of wool and mohair. I n a gove r n m e n t gaze tte dated Friday May 4, 2018 the government clearly spells out the new modus operandi in the marketing of wool and mohair, a sector which many in the past few months felt had immense potential to boost the national fiscus but has been left in the hands of foreign middlemen for decades. Under the new regulations, it is illegal for anyone to engage in the business of wool and mohair: shearing shed; brokering; testing; trading and auctioning; processing; and exporting “unless the person has obtained a license to d o s o f ro m t h e M i n i ste r
responsible…”. According to these regulations which came into effect on May 4, 2018 such a license obtained from the minister is “not transferable”. The minister may amend, suspend or cancel the license in the event that an operation closes its business, or the license is not used appropriately or is used in fraudulent activities, or the holder allows another party to use the license. These clear but tight measures come hard on the heels of a number of concerns by authorities. Small Businesses Development M i n i s t e r, C h a l a n e P h o r i , a few weeks ago called on all stakeholders to depoliticize the wool and mohair sector if the country is to meet some of its targets in wealth creation, job creation and sustainable economic growth and development. “I am not an expert but those who have conducted studies have found out that a lot of benefits
can be drawn from this neglected sector,” Phori said, though warning a lot of dirt and lack of transparency surrounds the wool and mohair deals. He said studies have shown that at full operation and capacity L e s o t h o ’s wo o l a n d m o h a i r sector can create up to 2000 sustainable jobs with more jobs from subsidiary operations as well as the chain supply. Phori disclosed a few weeks back that the government had drafted new regulations meant to harness this lucractive but largely neglected sector. “Right now we have gazetted the regulation of mandatory wool and mohair processing in Lesotho and I can almost certainly say there are 50 jobs assured once operations resume at the Lesotho Wool centre,” he said. According to Phori, for more than 44 years that Basotho wool and mohair farmers have been represented by the middleman in
their produce trade, the country has lost millions of Maloti that cannot easily be accounted for. “We are here talking of huge sums of money. I have learnt that of the M800 million that Lesotho p ro d u c t i o n m a ke s f ro m t h e markets, only M300 to M400 is actually accounted for in Lesotho and the rest is lost to South Africa,” he said. He added that over the years, Ba s o t h o fa r m e rs h ave b e e n charged taxes on their trade returns but the agents in the trade have not remitted a single penny to the country. Phori saying these discrepancies have to be followed up to the very end to bring trade justice to Basotho. “What the government of Lesotho wants is to see the sector open and trade deals being transparent. We are aware there are people who have been benefiting personally from these deals and we need to get rid of that
and make sure that each and every participating farmer gets their fair benefits. “There has also been a lot of resistance in the introduction and implementation of the new regulations, but we will get to the bottom of this matter,” Phori said, adding that the passion of growing indigenous Basotho businesses is what will drive his ministry to achieve this goal of processing Lesotho’s wool and mohair produce to suit markets demands instead of just sending raw products to the market. Lesotho, still smarting from the depletion of revenue spawned by the ever-dwindling Sacu revenues is stepping up its act to plug any leakages in the economy. Earlier this year, Finance minister Dr Moeketsi Majoro, while presenting the national budget estimates for the current fiscal year bemoaned the dwindling national revenue, urging Basotho to tighten their belts.
L
Responsible borrowing
can put you in the driver’s seat Lesotho Credit Information Sharing (LCIS) aims to encourage responsible borrowing practices for Basotho and influence increased credit extension while alleviating the risk of indebtedness to create an economic society with a good credit record through collection and sharing of credit information. Do the responsible thing; pay your loans on time and avoid being overly indebted to maintain a good credit record. The LCIS is a joint national initiative by Government, the Central Bank of Lesotho, Credit Providers, the Credit Information Bureau and Development Partners. Contacts Central Bank of Lesotho | Corner Moshoeshoe & Airport Road P.O. Box 1184, Maseru 100, Lesotho Tel: +266 22 232 000 | +266 22 232 022/24 www.centralbank.org.ls Terms & Conditions Apply.
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Public Eye
Friday May 18, 2018
Business Eye News
‘Business opportunities are in everyday life’ ‘MASENTLE MAKARA
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AS E RU - T h e Ministry of Small Business Development, C o - o p e ra t i ve s and Marketing this week convened reporters from different media houses at a press conference in Mafeteng hosted by Proudly Mosotho Buy local Campaign which among others seeks to encourage Basotho to have an eye for business. At the core of this nationwide campaign is a drive to encourage Basotho to produce and buy local and to dissuade Basotho from drifting to urban areas to seek opportunities by encouraging entrepreneurs to develop thriving businesses wherever they are, instead. The campaign, which will visit all the 10 districts of Lesotho, was launched in Maseru last month so Mafeteng is the second district to be visited. Jo u r n a l i s ts h a d a ra re opportunity to interact at length with the ministry’s PS, Lerata Pekane, who opened up to explain in detail the values that drive the campaign. “Business is my hobby. I love business; I sleep, I wake up and drink business and which is something I believe if we were to value and recognise how it can set us free from our way of thinking because once you are an entrepreneur, believe me your
way of thinking becomes different.” Asked what commodities he thinks Lesotho can sell to other nations he said: “This country does not need to be sold at all. It has already sold its self just the way it is. The landscape attracts most of the tourists. I mostly take tourists to ‘Maletsunyane Waterfall, I take drive them there and they just say nothing and they will just ask me to stop for a photoshoot. When we come back they will be the ones telling me about Lesotho.” Pekane encouraged reporters to love and know their country first and boast about it as tourism can boost the country’s economy. He added that Basotho are the happiest lot and are easy to live with which is why foreigners like touring Lesotho. “The greeting itself, most tourists admire it. When you greet a Mosotho, the smile he or she puts on a face means a lot to a foreigner and it hardly occurs in many other nations. Apart from that we speak one language nationwide and that gives beautiful uniformity about us. We invest in language because most Basotho prefer Sesotho more than other languages and when we speak it makes us a beautiful, unified nation.” Driving in his car all the way from Mafeteng, Pekane spoke about nothing else but business. As the car headed to Qeme, there is a brick wall along the roadside.
Matsobane Moheane
Ministry of Small Business Development, Cooperatives and Marketing PS Lerata Pekane
“This has been here for as far as I recall, and people do not see a business in this. This is can be turned into a billboard. You should see business in everything,” he said. As the car goes on, there was a billboard stand without a billboard advert and he exclaimed: “You see! If there are no adverts, advertise your own billboard company. How will people know about the contacts when seeking adverts?” Along the road there are women who sell roasted maize and Pekane marvelled at their enterprising spirit, which makes them brilliant enough to recycle petrol tins to make their business place. He also explains how they change the products with the change in season to ensure they continue selling something all year round. There were gentlemen selling grapes and when the car stopped one of the gentlemen came to the car hoping we would buy his wares.
Pekane wound the window and greeted the vendor before fully introducing himself and the reporters to the gentleman. Lerata Pekana (LP): “Ntate, please spare us your time, I just want to educate these people here with me about the importance of business. Kindly tell us your names.” “I am Matsobane Moheane ” LP: For how long have you been doing this business? Matsobane Moheane (MM): It has been five years. LP: Is this business easy or difficult? MM: Very easy. Pekane laughed LP: How far did you go with your education? I am asking this because there are those who hold degree in here and they are not making as much money as you make every day. MM: I did not go far, I did Form A. LP: I am laughing at them because they are still telling me how difficult
business is. So tell us about your business. MM: We buy the grapes in Maseru and even if I do not sell the whole pocket of gapes a day, I know the following day it will get finished. LP: When the season of grapes ends what do you sell? MM: I was thinking of selling apples. Sometimes we sell peaches and dried fruits though I rarely sell them because I do not have enough time to dry them. LP: How much are you making per day? MM: I make at least M250 per day and get 120 as my profit. LP: How has this business shaped your life? MM: I am married so I provide for my family, though sometimes we get rotten grapes so we do not make money. LP: How are you planning to grow your business from here? MM: I have a tuckshop so I am thinking of focusing more on it because it sells a lot, but it is still smaller than what I want it to be. I have hired my sister to help. PK: Are you alone in this business? MM: I am doing this with one gentleman who I have recruited him and taught about this business so now we are partners. PK: Have you applied for sponsorship at our ministry? We called for small business to draft proposals so that we can help them to grow. MM: This is new to my ears so I did not know about it.
Continues on page 4
REQUEST FOR EXPRESSIONS OF INTEREST INDIVIDUAL CONSULTANT BEHAVIOURAL INSIGHTS CONSULTANCY KINGDOM OF LESOTHO LESOTHO TAX MODERNISATION PROJECT Financing Agreement reference: 2100150038494 Sector: Tax Administration Project ID No.: P-LS-KF0-003 The Government of the Kingdom of Lesotho has received financing from the African Development Bank towards implementation of the Lesotho Tax Modernisation Project and intends to apply part of the agreed amount for this grant to payments under the contract: A behavioural insights Individual Consultant to support the strategic shift towards voluntary compliance and ensure that all Tax Modernisation initiatives are aligned with the Strategy as they are being implemented. The Individual Consultant Consultant’s services included under this project are as follows: a. Understand the new strategic direction of the Lesotho Revenue Authority (LRA); b. Analyse the current environment within the LRA and identify the challenges which hinder voluntary compliance by clients and maximum collaboration with the clients; c. Review and improve on the LRA performance monitoring and evaluation tools; and d. Support the LRA Delivery Unit in terms of monitoring and evaluating performance by all implementers of the new Strategy. e. Support the Change Management Unit of the LRA to develop programmes which will incorporate application of behavioural insights principles. The above services are to be provided to Lesotho Revenue Authority from July 2018 to July 2019. The Lesotho Revenue Authority now invites eligible Individual Consultants to indicate their interest in providing these services. Interested consultants must provide information through the Curriculum Vitae indicating that they are qualified to perform the services. Eligibility criteria, establishment of the short-list and the selection procedure shall be in accordance with the Procurement Policy and Methodology for the African Development Bank Group Funded Operations, dated October 2015, which is available on the Bank’s website at http://www.afdb.org. Interested consultants may obtain further information at the address below during office hours 08:00 hours to 16:30 hours. Expressions of interest must be delivered to the address below by 08 June 2018 at 16:30 and mention A behavioural insights Individual Consultant to support the strategic shift towards voluntary compliance and ensure that all Tax Modernisation initiatives are aligned with the Strategy as they are being implemented. Attn: Mr. Rakokoana Makoa; Lesotho Tax Modernisation Project Email: R.Makoa@lra.org.ls or +266 22313796 / +266 52215791
Lesotho Revenue Authority Serving You, Serving the Nation
Ministry of Small Business Development, Co-operatives and Marketing
Public Eye
Friday May 18, 2018 3
Business Eye News
When we nurture talent, stars are born.
We help start–up businesses take off through mentorship and financing: one of the many initiatives we have for SMEs to help move our country forward. Thank you for enabling us to add a touch of blue to the milestones of Basotho’s lives every day.
Kemet Designs is a recipient of the Bacha Entrepreneurial Project*
#TouchedByBlue
TS & CS apply. *Bacha Entrepreneurial Project is sponsored in collaboration with LRA and Bedco. Moving Forward is a trademark of The Standard Bank of South Africa Limited.
Ministry of Small Business Development, Co-operatives and Marketing Standard Lesotho Bank
@StandardLSBank
Standard Lesotho Bank
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Friday May 18, 2018
Business Eye News
Salary or profit: which should we invest in?
J
ack Ma, the richest man in China postulated that if you put bananas and money in front of monkeys, they will choose bananas because monkeys do not know that money can buy more bananas. What he meant is that, in reality, if you offer job and business to people, they would choose a job because most people do not realise that business can bring more money than salaries. Profit is better than salaries because salaries can make you a living but profits can bring you a fortune. Making the leap from an unemployed individual to an entrepreneur means changing not only the lifestyle but also the individual’s mind-set. Entrepreneurship in its true sense involves the recognition of the bigger picture; designing hypothesis around opportunities, and persistently testing that entrepreneurial hypothesis. This calls for commitment and perseverance through all the challenges and failures because it tests the ability to transform an idea into a business. Such commitment and persistence is sure to open up a much wider horizon of job opportunities. Joseph Schumpeter, a political economist from Australia did
MOLIEHI MAFEKA
one of the pioneering studies on entrepreneurial phenomena and found that entrepreneurship has three underlying dimensions. First is innovation, which outlines the development of unique products or services. Second is risk-taking behaviour which drives the willingness to pursue opportunities within the calculated risks. Finally is pro-activeness which gives more emphasis on persistence and creativity in overcoming obstacles until the innovative concept is fully implemented. He also stated in his theory of economic development that entrepreneurship causes economic growth by allowing the means of production in a society to be used in newer and more efficient combinations. The American psychologist Abraham Maslow puts more emphasis through positing that the most valuable
one hundred people to bring into deteriorating society would not be economists, or politicians, or engineers, but rather a hundred entrepreneurs. Unemployment rate is high in Lesotho. Youth unemployment is even worse. This is mainly so because youth have being focusing on getting employment from the public sector. Some of the precious young minds don’t even think about launching a start-up until they are in their 30s and even 40s. Being an entrepreneur starts now and it begins in the mind. It starts from saving the little you have. Hurst and Lusardi provide evidence that the start-up capital of many new entrepreneurs is rather small. Given the modest amount of start-up capital, it is doubtful that finding the money to finance a new business is a major deterrent to entrepreneurship. It may be the case that lack of personal wealth may compromise the choice to become an entrepreneur. But does it necessarily mean one cannot start a business? Could we truly blame the financial markets’ imperfections for lack of entrepreneurship in the country? Or perhaps blame the government? It may be a bit challenging for the government to instil an
entrepreneurial spirit in citizens; however it can intervene in promoting an entrepreneurial spirit through intensive long-term training. Entrepreneurs are responsible for a large share of newly created jobs. But they also account for a substantial portion of job destruction as most people go into entrepreneurship unprepared as a last resort, without adequate knowledge of the idea behind this phenomenon. This perhaps explains why the government is so reluctant to finance the majority of youth business proposal. Thus intensive entrepreneurship remains a serious challenge for Lesotho to retain its competitive edge. In conclusion, it is important to remember that no matter how hard one works on a job, their kids can only inherit their business not their job. Therefore let us not wait till we are old to have a side hustle that can grow into a profitable business. It is crucial for policy makers, business leaders, parents, government and everyone to nurture an entrepreneurial spirit in the youth of Lesotho. It is much better for the current generation to suffer today in preparation of the better tomorrow. • Mafeka is a Third Year Economics Student at the National University of Lesotho
‘Business opportunities are in everyday life’ Continues from page 2 Pekane handed a business card to Moheane then gave him directions to his offices at Fairways Plaza, Maseru. PK: I do not know what will happen, but you should consider yourself very lucky. Call me then we shall take it from there. Tu r n i n g to t h e re p o rte rs accompanying him in the car after we left the place, Pekane started explaining day-to-day entrepreneurship. “Some of the things we do we may not realise how big they are. He may not have realised than he created an entrepreneur by teaching his partner this business. Apart from that he gave his sister a job. This shows you do not have to start big, you will graduate when time goes.” As the car passed the turn-off to Moshoeshoe 1 International Airport, it was clear we were back to densely populated greater Maseru with its pervasive plastic litter. But Pekane chose to look at it differently. What had started off with disappointment when a minibus carrying reporters to the event in Mafeteng broke down, turned out to be a blessing. Riding in the PS’s car gave reporters a rare opportunity to take notes from an unplanned encounter with a government official who sees a business opportunities everywhere.
REQUEST FOR EXPRESSIONS OF INTEREST INDIVIDUAL CONSULTANT TRAINING ON BUSINESS PROCESSES AND SOLUTION DELIVERY FRAMEWORKS/ METHODS KINGDOM OF LESOTHO LESOTHO TAX MODERNISATION PROJECT Financing Agreement reference: 2100150038494 Sector: Tax Administration Project ID No.: P-LS-KF0-003 The Government of the Kingdom of Lesotho has received financing from the African Development Bank towards implementation of the Lesotho Tax Modernisation Project and intends to apply part of the agreed amount for this grant to payments under the contract: An Individual Consultant for training on business processes optimisation and simulation, business analysis, user experience design and Agile Methods The Individual Consultant’s services included under this project are as follows: a. Develop the training programme and the implementation plan; b. Provide training on business process optimisation and simulation; c. Provide training on business analysis; d. Provide training on user experience design; e. Train BPAs, developers and Lesotho Revenue Authority (LRA) Management on Agile (Scrum) methods of delivering solutions; and f. Develop the training report. The above services are to be provided to LRA from September 2018 to March 2019. The Lesotho Revenue Authority now invites eligible consultants to indicate their interest in providing these services. Interested consultants must provide information through Curriculum Vitae indicating that they are qualified to perform the services. Eligibility criteria, establishment of the short-list and the selection procedure shall be in accordance with the Procurement Policy and Methodology for the African Development Bank Group Funded Operations, dated October 2015, which is available on the Bank’s website at http://www.afdb.org. Interested consultants may obtain further information at the address below during office hours 08:00 hours to 16:30 hours. Expressions of interest must be delivered to the address below by 08 June 2018 at 16:30 and mention An Individual Consultant for training on business processes optimisation and simulation, business analysis, user experience design and Agile Methods. Attn: Mr. Rakokoana Makoa; Lesotho Tax Modernisation Project Email: R.Makoa@lra.org.ls or +266 22313796 / +266 52215791
Lesotho Revenue Authority Serving You, Serving the Nation
Ministry of Small Business Development, Co-operatives and Marketing
Public Eye
Friday May 18, 2018 5
Business Eye News
World Bank forecasts rising commodity prices in 2018 LAWRENCE KEKETSO
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h e Wo r l d B a n k ’s commodity markets outlook recently released forecasts showing a tougher year in 2018 with commodity prices across the sectors expected to be on the rise as global growth is accelerating and therefore raising demand. The outlook states that oil prices are forecast to average US$65 a barrel over 2018, up from an average of $53 a barrel in 2017, saying this is the result of strong demand from consumers and restraint by oil producers, while metals prices are expected to rise nine percent this year, also on a pick-up in demand and supply constraints. The World Bank further said in its report that prices for energy commodities – which include oil, natural gas, and coal - are forecast to jump 20 percent in 2018, a 16 percentage point upward revision from October’s outlook. The metals index is expected to rise as a nine percent drop in iron ore prices is offset by increases in all base metals prices, led by nickel, which is
forecast to rise 30 percent, the Bank further explained in its statement. Agricultural commodities, including food commodities and raw materials, are anticipated to see a price rise of over two percent this year on diminished planting prospects, the outlook revealed, however stating that weather disruptions are expected to be minimal. “Accelerating global growth and rising demand are important factors behind broad-based price increases for most commodities and the forecast of higher commodities prices ahead,” Shantayanan Devarajan, World Bank Senior Director for Development Economics and acting Chief Economist said, adding, “At the same time, policy actions currently under discussion add uncertainty to the outlook.” The outlook further stated that oil prices are expected to average $65/bbl over 2019 as well, saying although prices are projected to decline from April 2018 levels, they should be supported by continued production restraint by OPEC and non-OPEC producers and strong demand.
“Upside risks to the forecast include constraints to US shale oil output, geopolitical risks in several producing countries, and concerns the United States may not waive sanctions against Iran. Downside risks include weaker compliance with the oil producers’ agreement to restrain output or outright termination of the accord, rising output from Libya and Nigeria, and a quicker-than-expected rise in shale oil output,” the Bank said in a statement. It continued that upside risks to the metals’ price forecast include more robust global demand than expected, adding that supply could be held back by slow incorporation of new capacity, trade sanctions against metals exporters, and policy actions in China.
The outlook also pointed out that downside risks include slower-thanexpected growth in major emerging markets, the restart of idle capacity, and an easing of pollution-related policies in China, and added precious metals are expected to climb three percent this year in anticipation of US interest rate increases and higher inflation expectations. On grains and oils and meal the outlook says prices are expected to rise in 2018, mostly due to lower planting intentions. It said for example, the mild La Niña cycle that extended into the early part of the year only affected banana production in Central America and soybean production in Argentina and did not impact global markets for those crops substantially. However, the forecast states that
the possible introduction by China of counterveiling duties in response to US tariff increases could impact the soybean market. Closer home in South Africa, concerns have already been raised with a forecast of more fuel prices increases in the coming months. Market analysts are already projecting a further fuel price increase of up to 83cents in the next coming month, with paraffin users likely to be the most hit, with up to 78cents hike per litre, as paraffin is largely used in Southern Africa for household cooking and heating with the winter months just started. In Lesotho, just as in South Africa and the rest of the CMA, rising prices will further be worsened by the weaker Rand against major international currencies.
REQUEST FOR EXPRESSIONS OF INTEREST INDIVIDUAL CONSULTANT CONSULTING SERVICES: LEGAL SERVICES CONSULTANCY KINGDOM OF LESOTHO LESOTHO TAX MODERNISATION PROJECT Financing Agreement reference: 2100150038494 Sector: Tax Administration Project ID No.: P-LS-KF0-003 The Government of the Kingdom of Lesotho has received financing from the African Development Bank (AfDB) towards implementation of the Lesotho Tax Modernisation Project (LTMP) and intends to apply part of the agreed amount for this grant to payments under the contract: An Individual Consultant for Tax Modernisation Phase II Legal Services Consultancy. The Individual Consultant’s services included under this project are as follows: i. Review the current legal frame work that provide for taxation in Lesotho; ii. Conduct legislation research on the best practices for implementation of LTMP; iii. Conduct a comparative study; iv. Translate business requirements into legislative provisions; and v. Identify and consult stakeholders to solicit inputs; vi. Develop a programme for sensitizing both internal and external stakeholders on the new legal framework; vii. Sensitise both the internal and external stakeholders about the revised legal management framework; viii. Provide additional resources required to augment internal capacity and successfully deliver new legal framework; ix. Prepare tender/bidding documents based on AfDB standard bidding documents, bid advertisements, and bid evaluation reports in accordance with the procurement policy and guidelines; and provide advice and technical support in conducting bid opening, preparation of the minutes of bid opening and evaluation of the bids. The above services are to be provided to Lesotho Revenue Authority from November 2018 to November 2021. The Lesotho Revenue Authority now invites eligible consultants to indicate their interest in providing these services. Interested consultants must provide information indicating that they are qualified to perform the services. Eligibility criteria, establishment of the short-list and the selection procedure shall be in accordance with the Procurement Policy and Methodology for the African Development Bank Group Funded Operations, dated October 2015, which is available on the Bank’s website at http://www.afdb.org. Interested consultants may obtain further information at the address below during office hours 08:00 hours to 16:30 hours. Expressions of interest must be delivered to the address below by 08 June 2018 at 16:30 and mention An Individual Consultant for Tax Modernisation Phase II Legal Services Consultancy. Attn: Mr. Rakokoana Makoa; Lesotho Tax Modernisation Project Email: R.Makoa@lra.org.ls or +266 22313796 / +266 52215791
Lesotho Revenue Authority Serving You, Serving the Nation
Ministry of Small Business Development, Co-operatives and Marketing
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Friday May 18, 2018
Business Eye
U
S President Donald Trump’s announcement to pull out of the Obama-era deal and reinstate sanctions on Iran sent ripples through markets, pushing oil further above $70 a barrel. Higher crude prices will likely hit economies elsewhere. Financial markets felt turbulence last week with ramifications for the world economy. Most African markets treaded water during last week. USA For the week the Dow rose 2.3 percent, its biggest weekly gain since March, while the S&P 500 and NASDAQ climbed 2.4 percent and 2.7 percent respectively. Energy stocks led the way for the major indexes last week, climbing 3.8 percent. The sector received a boost from surging oil prices, which jumped after president Trump pulled the United States out of the Iran nuclear deal. Technology shares also contributed to the index’s weekly gains, rising 3.5 percent. Leading the S&P 500’s biggest sector by market capitalisation were Facebook and Google parent Alphabet, which climbed more than 5 percent. Apple the biggest US publicly traded company reached all time high last week. Equities broke out of a tight trade trading range last week. The S&P 500 and Dow closed above their 50 day moving average last week. The 50 day moving average is a key technical level watched by
technical analysts and strategists. The US dollar traded mostly lower against its key counterparts last week, after soft April inflation data. The dollar index, which tracks the greenback against a basket of currencies, was weaker following, the release of US softer than expected inflation data. Ten-year yields which have been driving the greenback and exacting pain on emerging markets, dipped to below 3 percent, to push the dollar to pare off earlier gains. Europe The Euro weakened against the US dollar last week, after the Eurozone’s Sentix Investor Confidence Index unexpectedly, declined in May reaching its lowest level since February, 2017. This was exacerbated by a surprise fall in Germany’s monthly factory orders which declined in March; however trade surplus in Germany increased in March, recording highest level last seen in December 2000. The Bank of England held interests rates at 0.5 percent against analysts expectations, downgrading its 2018 economic growth forecast to 1.4 percent from a previous projection of 1.8 percent on the backdrop of weaker economic data. The Bank, however noted that some rate rises would be needed over the next three years to prevent the economy from overheating. Unemployment remains at its lowest since 1975, real earnings
Making Money LEONARD NYAMBUYA for the first quarter grew faster than the inflation rate. The pound held firm against the greenback at 1.3514. Asia Most Asian stocks closed higher last week, with positive sentiment partially driven by gains seen on Wall Street following softer than expected U.S. inflation data. Meanwhile, oil prices were slightly lower after reaching recent multi year highs on geopolitical concerns. The Nikkei 225 closed up 1.16 percent or 261.30 points, at 22,758.48 in Tokyo and the broader Topix gained 0.98 percent. Gains were broad based as investors focused on the robust earnings releases in Japan, with the technology and financial sectors advancing although the Topix mining sub index was down 3.81 percent. In
Seoul, the Kospi climbed 0.55 percent to 2,477.71 aided by higher moves in tech and auto sector stocks. In Sydney, the S&P/ ASX 200 gave up early gains to close off by 0.04 percent at 6116.20 as the financials and energy sub indexes weighed. Major miners, however, ended higher. Overally gains in the region came on the back of Wall Street’s sharp gains last week. The advances followed the release of weaker than expected US inflation data in the last session. The lighter than forecast number eased concerns about the Federal Reserve tightening monetary policy at a faster rate than the market had been expecting. Also of note, President Trump last Thursday said his meeting with North Korean leader Kim Jong Un is set to take place in Singapore on 12 June. The
meeting comes on the back of easing tensions on the Korean peninsula, with Kim having met South Korean leader Moon Jae-in in April. Early this week, President Trump’s ZTE, move gave many Asian markets a big boost. The President indicated he wanted to help sanctioned Chinese company get back to business quickly. The move raised hopes of improved US - China relations. African Markets Ghana The demand for Ghana’s $2 billion Eurobonds exceeded supply four times as Africa’s second fastest growing economy convinced investors about its economic turnaround story. According to Ministry of Finance Ghana got more than $ 8 billion of bids after marketing debt in the U.S. and London. The nation placed $ 1 billion of 10year bonds at 7.627 percent, the lowest rate for a sub Saharan African country whose credit rating is at B, the fifth highest junk assessment, at S&P Ratings and Fitch Ratings. The 30 year debt was priced at 8.627 percent. Ghana’s economy grew 8.4 percent last year. Its
REQUEST FOR EXPRESSIONS OF INTEREST CUSTOMER CARE TRAINING PROGRAMME KINGDOM OF LESOTHO LESOTHO TAX MODERNISATION PROJECT
Financing Agreement reference: 2100150038494 Sector: Tax Administration Project ID No.: P-LS-KF0-003 The Government of the Kingdom of Lesotho has received financing from the African Development Bank towards implementation of the Lesotho Tax Modernisation Project and intends to apply part of the agreed amount for this grant to payments under the contract: An Individual Consultant for development of customer care training programme and its implementation. The Individual Consultant’s services included under this project are as follows: a. b. c. d. e.
Understand the new strategic direction of the Lesotho Revenue Authority (LRA); Analyse the current environment within the LRA and identify the challenges which hinder voluntary compliance by clients; Review the current tools the LRA has with regard to promoting good customer service and customer care; Develop the customer care training programme for the LRA, in line with the new strategic direction; and Assist the LRA to implement the Programme.
The above services are to be provided to LRA from July 2018 to July 2019. The Lesotho Revenue Authority now invites eligible consultants to indicate their interest in providing these services. Interested consultants must provide information indicating that they are qualified to perform the services. Eligibility criteria, establishment of the short-list and the selection procedure shall be in accordance with the Procurement Policy and Methodology for the African Development Bank Group Funded Operations, dated October 2015, which is available on the Bank’s website at http://www.afdb.org. Interested consultants may obtain further information at the address below during office hours 08:00 hours to 16:30 hours. Expressions of interest must be delivered to the address below by 08 June 2018 at 16:30 and mention An Individual Consultant for development of customer care training programme and its implementation. Attn: Mr. Rakokoana Makoa; Lesotho Tax Modernisation Project Email: R.Makoa@lra.org.ls or +266 22313796 / +266 52215791
Lesotho Revenue Authority Serving You, Serving the Nation
Public Eye
Friday May 18, 2018
Make Sense budget deficit decreased to 6 percent of gross domestic product in 2017 from 8.7 percent of GDP the year before. The ministry said $750 million represents new debt will be used as revenue for the country’s 2018 budget. The rest will go to swap costlier existing dollar bonds and be used for other liability management. GSE decreased by 0.63 percent. Egypt According to Egypt’s central bank, the country’s core inflation slightly increased to 11.62% year on year in April from 11.59 percent in March. Since Egypt devalued its currency in November 2016, inflation has been on the rise. It reached a record high in July 2017 on the back of energy subsidy cuts. The EGX30 lost 3.8 percent. South Africa South African markets ended the week on a positive note, tracking advances in global equity markets. The upward trajectory was also propelled by positive growth prospects for the remainder of the year. Net 1 UEPS Technologies rallied 22.4 percent, as it reported a rise in its third quarter revenues. Rebosis property fund gainged 6.5 percent, as it recorded an increase
in its 2018 half year income. Market heavyweight Naspers rose 6 percent, after selling its stake in Indian company, Flipkart to Wal-Mart for $2.2 billion. However loses were recorded in Sibanye Gold which tumbled 17.8 percent, as seven of its employees lost their lives due to injuries sustained during the accident at Masakhane mine. Datatec declined16 percent, as it expects a significant increase in its 2018 half year headline loss. The JSE All Share Index advanced 1.3 percent to close at 58422.86. Zambia Zambian Finance Ministry expects the economy to sustain growth of more than 4 percent this year supported by mining, agriculture and construction sectors. While IMF has warned about the likelihood of Zambia defaulting on its foreign debt, Ministry of Finance issued reassuring statement highlighting that Zambia has never defaulted on its foreign debt and Eurobond interest payments and the position will not change now. There were limited trades during the week total market capitalisation was flat at K63,303,509,300.The LuSE lost 0.24 percent to close at
5,556.86 points. Zimbabwe Total market capitalisation gained a further 2.25 percent to close last week at $10.42 billion yield to date (YTD) is +4.42 percent. The week’s top gainers were Padenga up 24 percent, Unifreight up 19.86 percent. The week’s largest loses were recorded in ZHL, Willdale an OK Zimbabwe down 20 percent, 12 percent and 3.85 percent respectively. Volumes traded totalled 12.47 million shares and averaged 2.49 million shares per day. Weekly turnover totalled $ 7.3 million. Average daily value traded was 1.40 million for the week. Activity was highest in Econet, Delta and African Distillers contributing 50.30 percent, 12.80 percent and 8.79 percent respectively. The ZSE gained 2.25 percent to close at 345.5 points. Lesotho Last week the Government of Lesotho through the Central Bank was on the market seeking to raise M80 million, through issuing Treasury Bills. The auction and settlement date was the 16 of May 2018. The bids were open for, 91, 182, 273 and 364 days. Previous bills for the same tenor yielded
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Business Eye 6.28, 7.11, 7.21 and 7.23 percent respectively. Commodities Oil Geopolitics remained a focus in the commodities markets, with oil prices trading slightly lower and settling at around $77.30 per barrel by the end of the week. This was amid investor concerns over the impact of renewed U.S sanctions on Iran oil exports. President trump announced the U.S. would withdraw from the Iran nuclear deal earlier last week. Bank of America Merrill Lynch analysts said Brent crude prices could rise as high as $100 per barrel on the back of factors like the collapsing of oil production in Venezuela potential export disruptions in Iran. The decision to exit the Iran nuclear deal has already pushed Brent prices above $77 a barrel. Prices have gained over 8 percent over the past month and 15 percent since the beginning of the year. It may well mean more pain at the petrol pump soon. Another factor that’s helping to reduce supply is an agreement between OPEC members and other major producers including Russia to slash output. The deal is set to expire at the end of 2018; OPEC and Russia are likely to continue to prevent prices from falling. At the same time, the global economy is growing at a healthy pace and supporting higher demand for oil. The extra
demand is helping to wipe out an oil glut that had plagued markets. Most minerals traded lower during the week, gold pared some of the early week gains to trade soft, it rebounded on the softening dollar, boosted prices for safe haven asset to close at 1319.60, silver was down 0.13 percent to trade at $16.73 an ounce, copper was up 0.22 percent to trade at $3.1185 an ounce. This week markets will be closely following developments in the U.S. – China trade talks in America. A spotlight will also be on the implication of jobs data on interest rates in England and geopolitical tensions in the Middle East and developments leading to the first meeting between a sitting US President and North Korean leader. 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
REQUEST FOR EXPRESSIONS OF INTEREST DATA WAREHOUSE AND BUSINESS INTELLIGENCE KINGDOM OF LESOTHO LESOTHO TAX MODERNISATION PROJECT Financing Agreement reference: 2100150038494 Sector: Tax Administration Project ID No.: P-LS-KF0-003 The Government of the Kingdom of Lesotho has received financing from the African Development Bank towards implementation of the Lesotho Tax Modernisation Project and intends to apply part of the agreed amount for this grant to payments under the contract for consultancy services to review Lesotho Revenue Authority (LRA) Business Intelligence Strategy, development of the Data Warehouse and Business Intelligence Solution and its roll-out. The services included under this project are as follows: Enhance Data Governance capability within the LRA •
Review and update the current data governance processes within the current organizational structure of the LRA;
•
Provide advice on changes required on the current structures and design the structure required for the successful implementation of data governance within the LRA;
•
Implement required automation and for reviewed data governance processes;
•
Provide required tools to implement and operationalize the reviewed data governance processes;
•
Provide documentation for all changes and SOPs for reviewed data governance processes; and
Implement Data Warehouse and Business Intelligence within the LRA: •
Analyze the existing implementation approach for the Data Warehouse and Business Intelligence and advise on possible improvements
•
Analyze the designed Data Warehouse model and advise on the weaknesses and improvement opportunities
•
Work closely with the LRA team to implement the targeted Data Warehouse and Business Intelligence capability
•
Provide advisory services on how to best operationalize the Business Intelligence capability within the LRA
•
Develop and implement a training program for all categories of users, including the project team, the LRA staff and external users on developed Business Intelligence;
•
Revise and document affected Processes and Standard Operating Procedures (SOPs);
•
Provide technical advice on the strategic adoption of Business Intelligence technology through-out the project.
The above services are to be provided to LRA from November 2018 to November 2021. The Lesotho Revenue Authority now invites eligible consulting firms to indicate their interest in providing these services. Interested consultants must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc.). Consultants may constitute joint-ventures to enhance their chances of qualification. Eligibility criteria, establishment of the short-list and the selection procedure shall be in accordance with the Procurement Policy and Methodology for the African Development Bank Group Funded Operations, dated October 2015, which is available on the Bank’s website at http://www.afdb.org. Interested consultants may obtain further information at the address below during office hours 08:00 hours to 16:30 hours. Expressions of interest must be delivered to the address below by 08 June 2018 at 16:30 and mention Firm for review of LRA Business Intelligence Strategy, development of the Data Warehouse and Business Intelligence Solution and the roll-out. Attn: Mr. Rakokoana Makoa; Lesotho Tax Modernisation Project Email: R.Makoa@lra.org.ls or +266 22313796 / +266 52215791
Lesotho Revenue Authority Serving You, Serving the Nation
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Public Eye
Friday May 18, 2018
News Adverts
Workplace&Careers
PUBLIC EYE MAY 18, 2018
KINGDOM OF LESOTHO
National Assembly
TSEBISO
TSEBISO
KOMITI EA PARAMENTE E ALOSITSENG LITABA TSA MOLAO LE POLOKEHO EA SECHABA E TLA POTOLOHA LE NAHA HO BATLA MAIKUTLO A SECHABA HOLIMA SETŠOANTŠO SA MOLAO SE RERETSOENG HO HLOMATHISA MOLAO OA MOTHEO LITABENG TSE AMANANG LE BOJAKI BA LESOTHO HO KENYELLETSA TJAKO-PELI (8TH AMENDMENT TO THE CONSTITUTION BILL, 2018). MAIKUTLO A NGOTSOENG A KA ROMELLOA PARAMENTENG - LEKHOTLENG LA SECHABA OFISING EA MONGOLI OA KOMITI - MOFUMAHALI ’MAMATEBA LEHOHLA PELE HO LETSATSI LA LA 15 PHUPTJANE, 2018. MAIKUTLO A KA BOELA A ROMELLOA KA MARANG-RANG ATERESENG E LATELANG: maanelalerato@gmail.com. LIPOTSO LI KA LEBISOA OFISING EA BOHOKAHANYI BA LIKOMITI HO MR. MOTHIBE MOTHIBE LINOMORONG TSE LATELANG: 22325554. KOMITI E TLA BA LITEREKENG TSE LATELANG KA MATSATSI A LATELANG: Date District Venue Time 23 MAY, 2018 Butha-Buthe Pitso House 1100hrs 24 MAY, 2018 Mokhotlong Community Hall 1000hrs 28 MAY, 2018 Quthing Community Hall 1100hrs 29 MAY, 2018 Qacha’s Nek Community Hall 1000hrs 30 MAY, 2018 Mohale’s Hoek Pitso House 1000hrs 30 MAY, 2018 Mafeteng Pitso House 1430hrs 31 MAY, 2018 Leribe Lebaleng la lifofane 1000hrs 31 MAY, 2018 Berea Taoana Square - DA’s Office 1430hrs 1 JUNE, 2018 Maseru Paramenteng ea Khale 1000hrs TSEBISO KA MONGOLI OA LEKHOTLA LA SECHABA – ADV. LEBOHANG FINE MAEMA
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Background The European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ) together with the Government of Lesotho have initiated a programme on civic education in Lesotho entitled Participatory Initiative for Social Accountability (PISA). The programme is co-funded by the EU and BMZ for a period of three years starting in June 2016. The Deutsche Gesellschaft fuer Internationale Zusammenarbeit (GIZ) is responsible for implementation of the programme. GIZ is a German Government owned organisation implementing development projects globally. The specific objective of the programme is to contribute to increasing citizens’ satisfaction with their participation in democratic and developmental processes, while the expected results are; enhanced citizens’ knowledge and skills on how to participate in democratic and developmental processes; creating dialogue forums for use by citizens and community structures to discuss democracy and development issues and capacity development for local councils to enable creation of opportunities for citizens to participate in public policy processes. GIZ therefore is looking for suitably qualified candidates for the following positions: Job Title: District Facilitator (DF) Location: PISA district offices with possible posting in remote districts Duration: 15 July 2018 until May 2019 (11 months) Band: 4, according to GIZ salary system (public sector benchmarked) Overall responsibilities: The PISA District Facilitator (DF) will implement and coordinate PISA activities at district level, in line with the overall PISA strategy, annual operational plans, budgets and results-based monitoring (RBM) system. This responsibility will be shared with the PISA Centre Coordinator (CC) for the district. Specific responsibilities: • To provide ongoing and proactive liaison with district- and community level-stakeholders relevant to PISA; • To support the functioning of District Steering Committee (DSC), including coordination of all DSC meetings; • To coordinate and/or carry out information, education and communication (IEC) activities for citizens, civil society organisations and government representatives at district and community level, including media activities, workshops and trainings, community outreach and sensitisation sessions. • To coordinate and/or carry out support to mechanisms for dialogue between citizens, civil society and government representatives; • To coordinate the establishment and functioning of participatory and grievance mechanisms for citizens at local government level; • To produce monthly reports on activities and results according to the PISA RBM-system and reporting template (together with CC); • To proactively provide timely information to PISA programme management regarding relevant events and developments in the district. Qualifications and Experience: • Bachelor degree in relevant field of study with at least 3 years of experience in similar position OR relevant diploma with more than 5 years of experience. • Knowledge or prior experience on civic education and community participation processes at local level. • Proven experience in facilitating workshops and training. • Excellent written and oral communication and presentation skills in both English and Sesotho. • Computer literacy • Prior experience with an international organisation is an asset • Willingness to travel and work away from office in remote rural areas for approximately 50% of the time (sometimes more when needed). • Ability to ride a motorbike with a valid licence. Candidates should submit CV’s of maximum 3 pages, motivation letter and motorbike driver’s license to: recruit-pretoria@giz.de attention Head of Unit, Dorothey Taaibosch. Closing date for applications 25th May 2018 and interviews will be held in Maseru during the first week of June. GIZ is committed to achieving workforce diversity in terms of gender.
LESOTHO ELECTRICITY AND WATER AUTHORITY
REQUEST FOR EXPRESSIONS INTEREST PUBLIC NOTICE ON LESOTHO OF ELECTRICITY COMPANY (PTY) LTD’S (LEC) APPLICATION FOR TARIFFS ADJUSTMENT FOR THE FINANCIAL YEAR 2018-19
DEVELOPMENT OF E-TAXATION SOLUTION AND ITS IMPLEMENTATION
KINGDOM OF LESOTHO A. Introduction LESOTHO TAX MODERNISATION PROJECT The Lesotho Electricity and Water Authority (LEWA) informs the Urban Water and Sewerage Services (UWSS) stakeholders and the general public that, the Water and Sewerage Company (WASCO) has filed a tariff application for a review of water and sewerage servicesAgreement tariffs for the reference: Financial Year 2100150038494 2018/19. This application is in line with Section 24 of the LEA Act, as amended. WASCO holds a Composite Licence issued in terms of Section 50 of the Lesotho Electricity Authority Act no. 12 of Financing 2002 (LEA Act), as amended. Sector: Tax Administration Project ID No.: P-LS-KF0-003 B. The application and tariff drivers that WASCO cites therein: On 09 May 2018 WASCO submitted a tariff adjustment application of 12% on both Domestic Volumetric and Standing Charges. WASCO further requested a 15% adjustment for non-Domestic Volumetric and Standing Charges. WASCO stated that The Government of the Kingdom of Lesotho has received financing from the African Development Volumetric and Standing Charges for public standpipes and Band A customers would remain at 2017-18 levels. The Company proposed a Revenue Requirement of M269.97 million which comprised M234.36 million for water services and M34.61 Bank towards implementation of the Lesotho Tax Modernisation Project and intends to apply part million for sewerage services. of the agreed amount for this grant to payments under the contract for consultancy services for the development of e-Taxation solution and implementation support. WASCO has stated the following the main components of theits2018/19 Operating Costs: Item
Projected cost in Million Maloti
The services included under this project are as follows: Manpower
123.69
Power i.
38.05 Gather detailed business requirements relating to e-taxation; ii. Usage Design a detailed e-taxation solution; Chemical 8.31 iii. and plant Develop the e-taxation solution and ensure its full integration with other Lesotho Revenue Authority Reticulation maintenance 10.36 (LRA) solutions; iv. Fully test the solution and develop the necessary test reports; Water and Sewerage connections 9.44 v. Implement online services solution to process registration, filing, payments, refunds and TCC; Depreciation 20.80 vi. Incorporate the pre-population of returns during filing periods, into the solution; vii. Revise and document affected Processes and Standard Operating Procedures (SOPs); Copies of the application can be obtained from LEWA offices in Maseru. Alternatively, copies may be downloaded from the Authority’s website at http://www.lewa.org.ls/home. Stakeholders who are in the districts may access copies of the viii. Implement online Taxpayer education programmes; and application from the District Administrators’ offices as from the 21st May 2018. ix. Provide necessary train-the-trainer to the users.
Invitation for public comments: The above services to stakeholders be provided LRApublic fromareNovember to November 2021. The Lesotho Revenue Authority before now LEWA invites eligible consulting firms to indicate In accordance with Section 24(6) ofare the Act, andto general invited to make2018 and forward their comments and inputs on the application for consideration makes a final determination. Interested people who wish their in providing these services. Interested must provide information indicating that theyThe aredeadline qualified to perform services (brochures, description to present theirinterest views before the LEWA Board, at public consultation meetingsconsultants are requested to indicate so in writing, when submitting their comments. for receiving writtenthe comments is Monday 04 June 2018 at 17:00.of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc.). Consultants may constitute joint-ventures to enhance their chances of Comments or enquiriesEligibility may be sent to: establishment of the short-list and the selection procedure shall be in accordance with the Procurement Policy and Methodology for the African qualification. criteria, Development Bank Group Funded Operations, dated October 2015, which is available on the Bank’s website at http://www.afdb.org. Interested consultants may obtain further The Manager information at the address hours to 16:30 hours. Expressions of interest must be delivered to the address below by 08 June 2018 at 16:30 and TNtlama@lewa.org.ls Economic Regulation Department LEWA below during office hours 08:00Email: mention Firm development of e-Taxation solution and its implementation and support. th Or 7 Floor Moposo House, Maseru P/Bag A315 secretary@lewa.org.ls Attn: Mr. Rakokoana Makoa; Lesotho Tax Modernisation Project Maseru Tel: 22 312479 Email: R.Makoa@lra.org.ls or +266 22313796 / +266 52215791 Fax: 22 315094
Ministry of Small Business Development, Co-operatives and Marketing Lesotho Revenue Authority Serving You, Serving the Nation