In a significant move aimed at curbing revenue leakages at Lesotho’s ports of entry and improving customs compliance, the Revenue Services Lesotho (RSL) and the Federation of Agents of Foreign Firms (FAFF) have signed a landmark Memorandum of Understanding (MoU).
The agreement, signed this week by RSL’s Commissioner General ‘Mathabo Mokoko and FAFF Chairman Advocate Lehloka Maphatšoe, is designed to streamline import processes, promote transparency, and tighten enforcement mechanisms in foreign trade.
It marks a critical step in Lesotho’s broader effort to close long-standing gaps in revenue collection and create a fairer business environment.
The MoU facilitates for sharing of critical trade data between the two parties to enable early detection of non-compliance and illicit business practices. This integration is expected to directly address the chronic challenge of revenue losses at Lesotho’s borders, where porous systems and weak enforcement have long been exploited by unscrupulous traders.
Speaking at the signing ceremony, Commissioner General Mokoko stressed that the agreement is the product of collaboration across several government institutions, including the Ministry of Employment, the Ministry of Trade, Industry and Business Development, the Ministry of Local Government, Chieftainship, Home Affairs and Police, and the Directorate on Corruption and Economic Offences.
“This agreement is not the result of one institution alone,” Mokoko stated.
“It represents a shared commitment to compliance, transparency, and fair business practices that can create much-needed employment for Basotho.”
Mokoko indicated that the MoU builds on a previous partnership with the Agents of Foreign Firms Association (AFFAL), reinforcing RSL’s mission to simplify cross-border trade while strengthening oversight.
“Integrating our systems strengthens our ability to monitor and regulate economic activity. It ensures foreign firms operate within the law while boosting revenue for critical public services,” Mokoko added.
On his part, FAFF’s chairman Advocate Maphatšoe described the MoU as a “critical step” in system integration that would allow authorities to detect irregularities before they escalate into costly loopholes. He emphasised that FAFF, though a registered company, operates as a non-profit entity focused on regulatory oversight.
“FAFF does not conduct business; our members do. Our role is to ensure they follow both legal and ethical business standards. This is more than just data sharing, it is about building an effective regulatory ecosystem that promotes long-term economic growth,” Maphatšoe said.
He further urged Basotho to embrace values of integrity and hard work, reminding them of the founding principles laid down by King Moshoeshoe I.
“Corruption does not sell. Mediocrity does not sell. But integrity does. Let us rise and rebuild on the foundation our founder King Moshoeshoe I laid.”
FAFF’s Public Relations Officer, Thabo Qhesi, also reiterated the federation’s role in protecting sectors reserved exclusively for Basotho entrepreneurs. He pointed to a 2020 law that restricts certain businesses to local ownership, warning that foreign encroachment in these areas undermines opportunities for citizens.
“We are working tirelessly to ensure that these reserved sectors are not unfairly dominated by foreign players. The MoU strengthens our enforcement capacity and affirms our legitimacy in addressing unlawful business practices,” Qhesi said.
He added that FAFF will continue to collaborate with RSL and other partners in monitoring compliance, ensuring that legitimate Basotho businesses are not crowded out by unfair competition.
Summary
- In a significant move aimed at curbing revenue leakages at Lesotho’s ports of entry and improving customs compliance, the Revenue Services Lesotho (RSL) and the Federation of Agents of Foreign Firms (FAFF) have signed a landmark Memorandum of Understanding (MoU).
- It marks a critical step in Lesotho’s broader effort to close long-standing gaps in revenue collection and create a fairer business environment.
- Speaking at the signing ceremony, Commissioner General Mokoko stressed that the agreement is the product of collaboration across several government institutions, including the Ministry of Employment, the Ministry of Trade, Industry and Business Development, the Ministry of Local Government, Chieftainship, Home Affairs and Police, and the Directorate on Corruption and Economic Offences.
Seabata Mahao is a general news reporter with special focus on Business and Sports. Started working at Newsday in 2021. Working in a team with a shared goal is what I enjoy most and that gives me the motivation to work under any environment leading to growth.
