Maseru, Nov. 27 – Dr. Retsélisitsoe Matlanyane, the Minister of Finance and Development Planning, presented the 2024/25 budget midterm review during a joint sitting of the National Assembly on Wednesday. The budget review, which had been postponed earlier due to macro-external factors, focused on a range of critical issues, including the economy, unemployment, mining and manufacturing, as well as health and education.
A key point of discussion was unemployment. Minister Matlanyane acknowledged the elevated unemployment rate in the country but highlighted the promising signs of economic recovery. She credited the strategic experience of the past 200 years and the ongoing Lesotho Highlands Development Project (LHDP) Phase II as factors that could lead to long-term growth and job creation. The project is expected to play a central role in driving the country’s development.
Regarding the national economy, the Minister indicated that Lesotho’s domestic economy is projected to grow by 2.2 percent in 2024. This growth is largely attributed to the aforementioned infrastructure projects, including the LHDP Phase II, as well as the Millennium Challenge Compact (MCC) II, which has provided significant investment in the agricultural sector.
However, Minister Matlanyane also raised concerns about rising food prices, which are expected to contribute to an inflation rate of 6.5 percent in 2024. She stressed the need for Lesotho to adopt resilient strategies to mitigate the risks posed by inflation, which is part of broader global economic challenges. The government will need to carefully manage its fiscal policies to ensure stability in the face of these external pressures.
The Minister’s budget review presented a cautious but optimistic outlook, acknowledging the challenges while focusing on the potential for growth through key projects and strategic investments. As the country navigates its economic path, the government’s focus will remain on fostering job creation, sustainable development, and managing inflation effectively.
