Latest news with #Maseru
Mail & Guardian
4 days ago
- Business
- Mail & Guardian
How South Africa's Lesotho water project costs ballooned by R45bn
Watershed: The Lesotho Highlands Development Authority building in Maseru. Photo: Sechaba Mokhethi The cost of the second phase of the In 2008, phase two was projected to cost R8 billion. By 2022, this had ballooned to R42 billion. It now stands at R53 billion, raising questions about governance, oversight and accountability. 'Despite Minister [Pemmy Majodina]'s public acknowledgement that a probe into the escalating costs of phase two of the [Lesotho Highlands Water Project] would be conducted, no further details have been shared with parliament or the public,' Democratic Alliance deputy spokesperson on water and sanitation Stephen Moore said last week. Moore has filed a Promotion of Access to Information Act application to the department of water and sanitation. This follows two unanswered letters, the first sent on 8 May. The department's spokesperson Wisane Mavasa said the May letter had not been sent directly to the minister or director general. 'Unfortunately, the letter was not acted upon by the officials that it was sent to,' she said, adding that the minister would respond 'shortly'. The department says the escalation is the result of various factors, including years of delays, treaty complications and market fluctuations. Oversight gaps South Africa's portfolio committee on water and sanitation raised concerns about the cost of the project with the auditor general at a sitting on 6 May. Delays have pushed completion from 2019 to 2028, affecting the delivery schedule and future phases of the project. The committee also noted constraints stemming from the 1986 treaty preventing the auditor general from auditing the LHDA directly, 'leaving South Africa reliant on Lesotho's audit structures'. But, says Mavasa, the Lesotho Highlands Water Commission (LHWC) has equal representation from both governments, had 'full access to the cost records of the LHDA' and had received detailed information about the delays. The committee also criticised the royalty arrangement, which it said obliges South Africa to continue payments to Lesotho even when water deliveries are interrupted. Other concerns included limited local procurement, dominance of foreign contractors and opaque financial flows. Some MPs went as far as calling for an immediate funding suspension, citing mismanagement and treaty flaws. However, the auditor general cautioned against such a drastic move, warning of legal consequences. It recommended treaty reforms, including joint audits, instead. Mavasa says South Africa and Lesotho have agreed to review the treaty, but the 'matters for review' have yet to be decided. Lesotho's Finance Minister Retselisitsoe Matlanyane From R8 billion to R53 billion Mavasa outlined the project's financial journey in detail. The original 2008 feasibility study produced a preliminary R8 billion estimate — excluding inflation, currency shifts, contingency allowances and modern environmental and social safeguards. Construction of the main works was expected to start in 2013 and deliver water to Gauteng by 2019. However, she said, the main contracts were only awarded in 2022 because negotiations with Lesotho took longer than expected. The situation had worsened with years of administrative and procedural delays. 'The phase two agreement was signed in August 2011. It then took 14 months for the [South African] parliament to ratify the phase two agreement and a further seven months for the Lesotho parliament to ratify the agreement after the ratification by the SA parliament,' Mavasa said. After Lesotho's 2013 change of government, the agreement was subjected to fresh scrutiny, adding further delays, according to Mavasa, who also pointed out that, between 2013 and 2022, the department of water and sanitation had five different ministers and 11 directors general, which slowed decision-making. There were also financing complications. Funders raised concerns over procurement processes for the main contracts and requested they be tendered afresh. The Covid pandemic also disrupted preparatory work. In October 2022, the LHDA projected a R42 billion completion cost — incorporating contract prices; social and environmental programmes; foreign exchange effects and administrative costs. More than R20 billion in extra costs was due to inflation linked to the delays, Mavasa said. In October, the figure rose to R53 billion. The department attributed this to: • R4.2 billion from boosting the contingency provision in line with international good practice from R3.3 billion in 2022 to R7.5 billion last year • R5.4 billion for additional social obligations requested by Lesotho, such as rural water supply and road infrastructure • R1.7 billion in price escalations, design changes and contractor claims linked to delays, including work-permit issues. Governance fixes and audits According to Mavasa, the project costs and time overruns have been a major concern for the department of water and sanitation and Minister Majodina. She said the Lesotho Highlands Development Authority has developed a plan to minimise any further delays and cost overruns. The LHWC would appoint a multidisciplinary team of experts to conduct management audits of contracts. Although the project is about half completed, she said two primary contracts are behind schedule. 'However, the LHDA is executing a turnaround plan to avoid further delays and recover lost time.' Last year, Mavasa said the department had established a governance committee comprising the department, the Trans-Caledon Tunnel Authority and the South African delegation to the LHWC, which meets monthly to review progress. The director general of the department of water and sanitation and the principal secretary of the relevant department in Lesotho held ad hoc and quarterly meetings to address issues arising from the project. Unresolved issues were escalated to the ministers. Lesotho's Minister of Natural Resources Mohlomi Moleko said he could only respond next week as he was outside the country.
Zawya
5 days ago
- Business
- Zawya
CTM360 partners with Lesotho Communications Authority
Maseru, Lesotho: CTM360, a global leader in Digital Risk Protection, is proud to announce its strategic expansion in Africa through a formal partnership with Lesotho Communications Authority (LCA). This collaboration marks a significant milestone in advancing cybersecurity capabilities and strengthening digital infrastructure in the communications sector in Lesotho. A Memorandum of Understanding (MOU) has been signed between Mr. Mirza Asrar Baig, CEO of CTM360, and the CEO of LCA, Mr Nizam Goolam, laying the foundation for a joint initiative aimed at bolstering Lesotho's communications sector's defense against evolving cyber threats. The primary partnership empowers LCA with real-time threat visibility into cyber risks targeting Lesotho's Critical Infrastructure. Through CTM360's consolidated cybersecurity stack, the initiative will enable proactive detection, continuous monitoring, and mitigation of digital threats across the communications sector. Mirza Asrar Baig, CEO of CTM360, reaffirmed his dedication to the collaboration, ''This partnership signifies more than just cooperation, it is a joint commitment to safeguard Lesotho's Critical Infrastructure, which includes MNOs, ISPs, and other essential communication sectors. We are committed to co-developing a risk-based maturity model that will empower LCA to lead effective nationwide cybersecurity initiatives.'' This MoU also facilitates comprehensive external cybersecurity assessments for LCA and its licensees, leveraging CTM360's advanced threat intelligence and monitoring capabilities. These assessments will support both reactive and preventative strategies for managing cyber risks, thereby fostering a more resilient digital environment for the Communications Sector in Lesotho. The CEO of LCA, Mr Nizam Goolam, on the same note, expressed enthusiasm about the collaboration, expressing that, 'This partnership comes at a critical time as we navigate the complexities of a fast-evolving digital landscape. By joining forces with CTM360, we are taking a proactive step to strengthen the communication sector's cybersecurity resilience and ensure the protection of key systems.' About Lesotho Communication Authority: Established in June 2000, the Lesotho Communications Authority (LCA) is a statutory body responsible for regulating Lesotho's communications sector. Its core mandate includes licensing operators, managing radio frequency spectrum, approving tariffs, promoting fair competition, type approving equipment, and ensuring consumer protection. Its mandate is to foster a secure, reliable, and competitive communications environment throughout Lesotho. For more information, contact: info@ About CTM360: CTM360 is a unified external security platform that integrates External Attack Surface Management, Digital Risk Protection, Cyber Threat Intelligence, Brand Protection & Anti-phishing, Surface, Deep & Dark Web Monitoring, Security Ratings, Third Party Risk Management and Unlimited Takedowns. Seamless and turn-key, CTM360 requires no configurations, installations or inputs from the end-user, with all data pre-populated and specific to your organization. All aspects are managed by CTM360. For more information, contact: info@
Zawya
08-08-2025
- Business
- Zawya
Despite tariff reprieve, Lesotho says it is already hurting
A reprieve from a 50% US tariff on goods from Lesotho has come too late to prevent damage to the tiny African kingdom's textiles industry, which has been hit hard by months of trade uncertainty, officials and industry players said. Lesotho's tariff rate was slashed to 15% in last week's executive order by US President Donald Trump, down from the level of 50% tariff threatened in April - which was the highest of any US trading partner. Textile industry players in the country - which produces jeans and other garments for popular US brands such as Levi's and Walmart - said the uncertainty around tariffs over the past few months had already devastated the sector, with orders cancelled and jobs cut. "We were on the verge of building (our) American market," Teboho Kobeli, founder and managing director of Afri-Expo Textiles, said at his factory in Maseru. He said the US market made up 10% of his company's production - about $1m a year - and that he had to lay off 200 workers, or 40% of his workforce, after the announcement in April as orders dried up. "That is a lot lost," he said. Lesotho, which Trump had ridiculed in March as a country "nobody has ever heard of", is a poor and landlocked country with a gross domestic product of just over $2bn. Trade Minister Mokhethi Shelile said that Lesotho would struggle to compete against other African textile manufacturers such as Kenya and Eswatini, which got a lower US tariff rate of 10%. "We have close to 12,000 jobs that are directly on the firing line because of this tariff," he said. The sector, which is the country's leading export industry and biggest private employer, was heavily dependent on the Africa Growth and Opportunities Act, a US trade initiative granting duty-free access to qualifying African nations. It employs around 40,000 people and accounts for roughly 90% of manufacturing exports, according to Oxford Economics. One of the people affected by the uncertainty is Matsoso Lepau, a 48-year-old who lost his job at protective outerwear maker Leo Garments in April. "I have a big problem because the money that I was making is not there anymore," he said, adding he used to earn the equivalent of $167 a month. "Now that Mr Trump has lowered the tariffs, I am still hoping that we will get our jobs back." Kobeli, the head of Afri-Expo Textiles, said he was confident he could get his business back on track now that the reduced 15% rate has been set, noting the uncertainty over US trade policy had weighed on investors' and retailers' decisions globally. "It was a global problem, even the buyers in America were stagnant as they did not know where to go... Now with the 15% we are starting to talk, it's not like we were affected alone," he said. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Zawya
07-08-2025
- Business
- Zawya
Lesotho aims for 10% tariff on exports to US
The Lesotho government has committed to continue with negotiations to further reduce tariffs on its exports to the US. This comes after the United States revised its crippling 50% tariff on all Lesotho exports down to 15%, effective from 7 August 2025. 'While we had negotiated the revision to at least 10% which was applied to all countries, this rate [15%] will ease the burden to our exporters, particularly the textile and apparel industry,' said Minister of Trade, Industry and Business Development Mokhethi Shelile at a press briefing on Friday in Maseru. The textile industry was among the hardest hit after the US announced sweeping tariff increases in April under its America First Trade Policy. The US had temporarily reduced the tariff to 10% for a 90-day negotiation period that ended 31 July. Shelile said during this time Lesotho had made a multi-pronged effort that included direct talks with the US Embassy in Maseru, lobbyists in the US who highlighted how increased tariffs would lead to higher prices for American consumers, and a final push led by Minister of Finance Retselisitsoe Matlanyane and the Lesotho' Embassy in Washington DC. 'We are still committed to continuing negotiations so that our exports can enjoy the minimum tariffs that the US applies,' Shelile said. Until April, Lesotho had enjoyed duty-free and quota-free access to US markets through the African Growth and Opportunity Act (Agoa). That preferential agreement helped Lesotho's textile sector grow to employ thousands of people. 'The US remains one of our main trading partners … and this relationship needs continuous nurturing,' the minister said. A new SADC-USA Dialogue Forum is expected to be launched at the SADC Summit in Madagascar which runs until 18 August.
Mail & Guardian
05-08-2025
- Business
- Mail & Guardian
Lesotho aims for 10% tariff on exports to US
Thetsane industrial area in Maseru is home to many garment factories. Archive photo: Sechaba Mokhethi The Lesotho government has committed to continuing with negotiations to further reduce tariffs on its exports to the United States. This comes after the US revised its crippling 50% tariff on all Lesotho exports down to 15%, effective from 7 August. 'While we had negotiated the revision to at least 10%, which was applied to all countries, this rate [15%] will ease the burden to our exporters, particularly the textile and apparel industry,' Minister of Trade, Industry and Business Development Mokhethi Shelile told a media briefing last Friday in Maseru. The textile industry was among the hardest hit after the US announced sweeping The US had temporarily reduced the tariff to 10% for a 90-day negotiation period that ended 31 July. Shelile said during this time Lesotho had made a multi-pronged effort that included direct talks with the US embassy in Maseru, lobbyists in the US who highlighted how increased tariffs would lead to higher prices for American consumers, and a final push led by Minister of Finance Retselisitsoe Matlanyane and the Lesotho embassy in Washington DC. 'We are still committed to continuing negotiations so that our exports can enjoy the minimum tariffs that the US applies,' Shelile said. Until April, Lesotho had enjoyed duty-free and quota-free access to US markets through the African Growth and Opportunity Act. That preferential agreement helped Lesotho's textile sector grow to employ thousands of people. 'The US remains one of our main trading partners … and this relationship needs continuous nurturing,' the minister said. A new South African Development Community-US Dialogue Forum is expected to be launched at the Southern African Development Community summit in Madagascar, which runs until 18 August. This article was
