Retailers are breathing a sigh of relief as the implementation of the Approved Economic Operator (AEO) program has significantly improved cross-border trade, ensuring fresh produce reaches shelves on time.
Sam Mphana, the co-owner of Pick n Pay Lesotho, has hailed the program as a game-changer in alleviating the long-standing challenges of delays at the border, which previously led to major losses.
For years, Pick n Pay and other retailers relied on fresh produce imports from South Africa to meet customer demand. However, border delays presented a persistent obstacle.
Speaking at the Revenue Services Lesotho (RSL) Tax Symposium for the central region earlier this week, Mphana explained that their trucks transported produce with a shelf life of only three days, yet before the AEO program, they would spend more than 24 hours at the border due to customs inspections.
By the time the produce reached store shelves, it often had only a few hours left before it had to be discarded. These delays resulted in significant financial losses and product shortages.
“The AEO program has been a game-changer for us,” Mphana said.
“In the past, border delays were a nightmare, especially for goods with a short shelf life. Our trucks would get stuck for hours, sometimes even days, while customs and inspections took place. By the time the produce got to the store, we were forced to throw much of it away. It was frustrating, inefficient, and costly.”
But with the introduction of the AEO program, the situation has changed dramatically. Mphana explained that trucks registered under the program now undergo a streamlined process where they simply declare at customs and receive immediate clearance.
Instead of long waits at the border, inspections are now conducted when the goods are offloaded, reducing overall delays and ensuring that produce arrives in optimal condition.
“This process has saved us more time in shelving life unlike before whereby if trucks took over two days at the border gate we had to call them off to return or had to throw the fresh produce out of the shelves due to our three days shelf life commitment to our consumers,” Mphana specified.
The benefits of the AEO program extend beyond individual businesses. RSL’s Deputy Commissioner of Customs Advisory Services, Thapelo ‘Moleli, explained that that the program is designed to facilitate trade, enhance compliance, and strengthen the country’s position in regional and global markets while streamlining trade operations to foster economic growth.
“The AEO program benefits not only local trade but also plays a crucial role in supporting exports, especially for Basotho entrepreneurs aiming to tap into SACU markets,” he said.
Despite the success of the AEO program in improving cross-border trade, Mphana noted that Lesotho still faces challenges in securing a steady supply of fresh produce.
While efforts have been made to support local farmers, inconsistency in supply and quality issues continue to pose problems. He stressed that bridging this gap remains crucial for the long-term stability of Lesotho’s fresh produce market.
Seabata Mahao is a general news reporter with special focus on Business and Sports.
Started working at Newsday in 2021.
has an Associate Degree in Journalism and Media.
