Journal Issue

Prs Prioritisation

International Monetary Fund
Published Date:
April 2006
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The strategies in the PRS were put in a matrix form, broken down to activities where possible and ranked. The purpose of the ranking exercise was to provide broad guidelines for phasing implementation. This stage was necessary as PRS implementation requires considerable skills capacity and financial resources that can only be amassed over a period of time. The ranking exercise was undertaken in consultation with the involved ministries, following agreed criteria. The strategies were ranked with respect to their likely impact in achieving the national priority and objective. Those that are critically important for the attainment of the priority or objective were ranked from 1 to 4, those important 5-8 and those necessary 9–12.

The implementation matrix presents work in progress that provides broad guidelines which will require to be revised and strengthened for implementation.

The ranking criterion follows:

Please record subjective assessment of this strategy:
High rankMedium rankLow rank
1 2 3 45 6 7 89 10 11 12


1.1 Attract foreign direct investment (FDI) and domestic investment1.1.1 Reduce administrative procedures to speed up the licensing processes. Establish a legal framework for setting up a one stop shop by 200511 Establish a One Stop Shop for speeding up the licensing process
1.1.2 Improve and speed up the process of application and issuance of travel documents1.1.2.1 Computerise the passport issuance system33 Undertake stringent supervision to curb corruption. Decentralise most functions of the department to district immigration offices throughout the country Improve the capacity of the personnel of the department through training. Increase the staff complement to cover the increased work load of the district offices
1.1.3 Provide basic infrastructure that is critical for investment1.1.3.1 Construct industrial infrastructure in the form of water, electricity, telecommunications, sewer lines, effluent treatment plants and reservoirs at Tikoe, Mohale’s Hoek, Mafeteng and Botha-Bothe.22 Provide factory shells on the above industrial estates, when needed. Improve the state of the Maseru Terminal Depot.
1.1.4 Improve efficiency in attracting foreign and local investment. Preparation of investment promotion materials including an investment code.33 Define and strengthen role of overseas missions. Strengthen the Investment Promotion Centre of LNDC.
1.1.5 Facilitate International Trade1.1.5.1 Strengthen capacity to negotiate beneficial trade agreements e.g. AGOA24 Improve Customs efficiency
1.1.6. Improve labour stability1.1.6.1 Strengthen tripartite industrial relationships through the establishment of an economic forum or a National Employment Council.56 Promote labour union development and stability. Review current policies and legislation pertaining to labour. Decentralise dispute resolution mechanisms to key districts where major industrial development is planned.
1.1.7 Establish a comprehensive social security scheme. Explore the possibility of establishing a comprehensive social security scheme for the formal and informal sectors.98 Introduce old age pension scheme for those aged 70 years and above in 2004/05.
1.1.8 Encourage better gender balance in recruitment. Hold negotiations with industrialists to study underlying factors behind the existing gender imbalance in industrial recruitment and to promote gender equality into the work force.47 Promote the acquisition of life skills in order to overcome gender and development problems. Strengthen the capacity of gender coordinating structures and establish gender focal points at national and district levels.
1.2. Support to local Business1.2.1 Build the skills of entrepreneurs and the local workforce so as to increase their productivity. Formulate a demand based skills development policy framework.63 Train entrepreneurs, including retailers, small-scale industries, SMMEs and service operators in business management programmes. Establish a skills development fund to finance training of the workforce Develop a skills transfer policy to ensure imparting of skills to the local workforce. Undertake post training monitoring and evaluation.
1.2.2. Develop sustainable market opportunities. Train negotiators from MTICM, MOFDP, MOFA and the Private Sector in negotiation and analytical skills to enhance their competitiveness in negotiating for market opportunities for locally produced products.21 Train entrepreneurs and the local workforce on quality control and introduce quality assurance procedures. Organise local entrepreneurs to build horizontal partnerships amongst themselves in order to reduce production costs and supply common markets collectively and meet market requirements.
1.2.3 Support adoption of appropriate technology1.2.3.1 Expand the Bethel Business Community Development project1 (as an ideal model for a technological multi disciplinary skill development centre) to strategic areas in the country.22 Facilitate the adoption of appropriate technology and where necessary link it to a subsidy or credit scheme.
1.3 Increase support to SMMEs21.3.1 Provide comprehensive support that is critical for the development of the SMMEs in the form of training, infrastructure, credit and market opportunities. Complete and approve the SMMEs policy11 Complete micro-lending policy and legislation Review Government procurement policy to give preference to SMMEs and local indigenous contractors (e.g. through preference margin, joint ventures and sub contracting). Undertake a comprehensive study on the developmental constraints of the Informal Sector Identify possible viable backward and forward linkages between SMMEs and large-scale enterprises, and create them. Introduce Rural Savings and Credit Groups (RSCGs) Scheme that will guarantee loans extended to groups by commercial banks. Implement the new Export Finance and Insurance Scheme. Establish new/ Upgrade existing industrial estates in each district, to include District Entrepreneurship Development Centre, which will contain business information centre, training facilities as well as production and marketing outlets. Establish Trade points for easy access to information on what Lesotho can sell to or buy from other markets, as well as on available joint venture opportunities. Expand and decentralise the following services relevant to the SMMEs needs - business incubation, mentoring, training and counselling. Develop and adopt appropriate technologies that meet the needs of SMMEs. Increase the capacity of Business Development Support (BDS) institutions to deliver quality services relevant to SMME needs. Provide sites, market shells, display areas, sanitation and water systems in market places and key areas where licensed street vendors operate in urban areas. Pilot rotational markets that combine provision of mobile basic services (e.g. post, bank, health and telecommunications) with marketing opportunities.
1.4 Make optimal use of natural resources1.4.1 Develop Agri-Business1.4.1.1 Identify and promote high value agricultural crops and byproducts that can be marketable.41 Promote and support market linkages for the use of agricultural products. Develop irrigation techniques/scheme where appropriate. Increase quality control at production and processing stages to take advantage of local, regional and international market opportunities. Develop marketing infrastructure e.g. at Ha Foso exhibition site).
1.4.2 Develop and diversify the tourism product and encourage community based income generating activities on the tourism sites. Select priority tourism sites for infrastructure development through Public Private Partnership.52 Encourage income generating activities (e.g. pony trekking, tour guiding, handicrafts, etc.) on tourism sites. Conduct research into new and additional products to diversify and complement the traditional product range with a view to extend the length of stay and increase average expenditure by tourists in Lesotho. Develop an information dissemination strategy (e.g. a joint tourist promotional package with the Republic South Africa or linking with travel agencies abroad) to attract tourists to Lesotho. Undertake community awareness campaigns for the marketing and preservation of major tourist attractions in the country. Participate effectively and meaningfully in major regional and international tourism exhibitions Introduce a tourism levy to finance activities of the LTDC and the setting up of a tourism fund, which will fund income-generating activities. Outsource management contracts for chalets at Mohale by 2004.
1.4.3 Develop the Mining Industry. Undertake an evaluation of the sandstone reserves in the country.43 Based on the above study, develop the sandstone industry by providing local miners with access to: credit; market and training in business management and quality control. Implement the new Mines and Minerals Act 2005. Explore and exploit additional dolerite quarries to increase local aggregate production. Explore and exploit additional diamond mines to increase local production. Undertake Monitoring of mining resources to ensure safety, health and environment.

1=HIGHEST RANK, 12=LOWEST RANK, RANK 1–4 = dark grey, RANK 5–8 = light grey, RANK 9–12 = no colour

1=HIGHEST RANK, 12=LOWEST RANK, RANK 1–4 = dark grey, RANK 5–8 = light grey, RANK 9–12 = no colour

Bethel is a training institution providing people without school-leaving certificates with survival life skills

Lesotho White Paper 2003 distinguishes SMME’s in terms of the number of employees: >3 Micro-size, 4–9 Small size and 10–49 Medium size.

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