At a recent post-budget gala dinner, budget analyst Dr. Ratjomose Machema ignited debate by asserting that Lesotho’s primary competitive advantage over South Africa lies in its access to cheap labour. His statement drew responses from various officials, including the Principal Secretary of Labour and Employment, Mr. Moshe Mosaase, who offered a broader perspective on the country’s investment and employment landscape.
In an interview, Mr. Mosaase acknowledged that while lower wage costs might attract investors, the real value of investment in Lesotho extends beyond just labour affordability. “It’s not merely about paying lower wages,” he emphasized. “We have to consider the cost of living in Lesotho, which is actually lower than in South Africa. When investors come here, they bring skills and training that empower Basotho to ascend to higher positions, thereby enhancing our workforce.”
Mr. Mosaase also underscored the government’s efforts to support labour mobility, particularly in response to international demand for skilled workers. He pointed to initiatives aimed at facilitating labour migration to countries like Germany, where there is a significant need for skilled professionals. This strategy, he noted, not only provides employment opportunities abroad but also contributes to Lesotho’s economic growth through remittances and knowledge transfer.
The discussion at the gala dinner underscores the ongoing dialogue on Lesotho’s economic strategy, highlighting both challenges and opportunities in positioning the country as an attractive destination for investment and workforce development.
