By Keletso Mkhwanazi
The recent signing of a revised Memorandum of Understanding (MoU) between South Africa and Lesotho aims to strengthen economic ties between the two countries, creating new opportunities for growth, investment, and cooperation.
Small and medium-sized enterprises (SMEs) are poised to benefit significantly from this agreement.
“This partnership brings nothing but great opportunities for our business. We have been looking to expand our operations into Lesotho, and this agreement provides us with the perfect opportunity to do so,” said Thembi Mkhize, owner of a South African export company.
Lehlohonolo Mokoena of Lehlohonolo Trading, a Lesotho-based company, echoes similar sentiments.
“We are thrilled about the potential for increased trade and investment between our two countries. This partnership will enable us to tap into the vast expertise and resources available in South Africa, taking our business to the next level,” said Mokoena.
The partnership is expected to have a positive impact on the South African economy.
“This agreement will not only increase trade between our two countries but also create new job opportunities and stimulate economic growth,” says Minister of Trade, Industry and Competition, Parks Tau.
Economists forecast that the partnership could lead to a significant increase in bilateral trade, with South Africa’s exports to Lesotho expected to rise by up to 15%.
This will not only boost the South African economy but also create new opportunities for businesses and entrepreneurs. Several key sectors are expected to benefit from this partnership.
“South African farmers will have increased access to the Lesotho market, enabling them to export their products and boost their revenue. South African manufacturers will have opportunities to supply goods to Lesotho, including textiles, machinery, and electronics. South African service providers, including financial institutions and consultants, will have opportunities to provide services to Lesotho-based businesses,” said Dr Azar Jammine, Director and Chief Economist of Econometrix (Pty) Ltd.
“With SMEs at the forefront of this agreement, the potential for growth, investment, and cooperation is vast. As the business community looks to capitalise on these new opportunities, one thing is clear this partnership will have a lasting impact on the economies of both countries,” said Jammine.
