Maseru, Feb. 19 — The annual budget speech for the 2025/26 financial year is underway, with the Minister of Finance and Development Planning, Dr. Rets’elisitsoe Matlanyane, outlining key strategies for Lesotho’s economic trajectory.
A major point highlighted in the address concerns the crucial need to shift revenue generation away from the traditional reliance on the Southern African Customs Union (SACU) and towards a more robust domestic revenue base.
This shift is deemed essential for strengthening Lesotho’s economic self-reliance.
Historically, Lesotho has heavily relied on SACU receipts, a source of income that can be subject to fluctuations and external economic pressures.
Dr. Matlanyane’s emphasis on internal revenue generation signifies a strategic move towards greater control over the nation’s financial destiny. This approach aims to insulate the country from external shocks and allows for greater flexibility in funding critical development projects.
The budget speech further revealed a concerning statistic of the high unemployment rate, particularly among young women.
The unemployment rate for young women stands at 41 percent, while that of young men is at 37 percent . This disparity highlights a pressing need for targeted interventions to address youth unemployment and promote gender equality in the job market.
To diversify Lesotho’s economy, the Minister emphasized innovation as a prerequisite for success. The need for innovation is particularly vital in the context of economic diversification.
The success of this goal will hinge on disciplined financial management, effective policies, and an active role from all stakeholders.
