Kananelo Boloetse
The budget speech delivered in Parliament on Wednesday was not merely a fiscal roadmap; it was a damning exposé of an inconvenient reality; Lesotho is no longer a single nation, but two irreconcilable worlds forced to exist within the same borders.
On one end, a privileged minority debates the marginal pain of increased PAYE deductions, while on the other, a forgotten multitude grapples with an existential crisis of chronic unemployment. This yawning gulf, between those burdened by taxation and those burdened by joblessness, threatens the very foundation of our social and economic fabric.
The Minister of Finance and Development Planning, Dr Retšelisitsoe Matlanyane, heralded a marginal expansion of Lesotho’s GDP, citing the Lesotho Highlands Water Project (LHWP) Phase II as a primary driver of this growth. Yet, beyond the numerical illusion of progress lies a harsh paradox; economic expansion that coincides with worsening unemployment.
Conventional wisdom dictates that GDP growth should birth employment and uplift livelihoods, but in Lesotho, prosperity is a privilege hoarded by the few, while poverty remains the inheritance of the many.
Thus, we must ask: Growth for whom? If our economy flourishes while our people languish, then we are not witnessing national development, but rather the calculated consolidation of wealth in the hands of an exclusive class.
What we are witnessing is not an economic anomaly, it is a deliberate system of exclusion. Massive state-backed projects like LHWP Phase II channel vast sums of money into the economy, but the spoils are disproportionately captured by foreign contractors, politically connected elites, and established business oligarchs.
Meanwhile, the vast majority of Basotho, particularly the youth, remain locked out of the economic machinery, unable to secure even the most meager opportunities.
For the middle class, the situation is equally dire. The latest tax adjustments, coupled with an insubstantial two percent salary increase, have resulted in a net loss for those earning above M10,000 per month.
In essence, these policies function as a reverse Robin Hood scheme—taking from those struggling to ascend the economic ladder while shielding those already at the summit. The government claims to be supporting workers, yet in reality, it has orchestrated a pay cut disguised as fiscal responsibility.
History is rich with cautionary tales of nations that ignored widening economic divides until they found themselves engulfed in unrest. When the people feel systematically marginalised, excluded from prosperity while witnessing opulence concentrated in elite circles, resentment brews. And when that resentment reaches its boiling point, the outcome is neither predictable nor peaceful.
Lesotho stands at the precipice of such an inflection point. A nation cannot sustain itself when half its population fights for mere survival while the other indulges in unchecked affluence. Inequality, left unchecked, metastasizes into political instability, social upheaval, and ultimately, violent confrontation.
If Lesotho is to avert an impending socio-economic crisis, we must urgently dismantle this entrenched system of exclusion and construct an economy that serves all, not just a select few. This necessitates:
- A Radical Reorientation of Growth Policies – GDP growth is meaningless unless it translates into tangible benefits for the masses. Infrastructure projects must prioritise local employment, ensuring that Basotho, not foreign firms, reap the rewards of national development.
- Tax Justice and Fair Wealth Redistribution – The current tax burden disproportionately affects the middle class while allowing economic giants to thrive unscathed. True progressive taxation should target corporate profits and high-net-worth individuals to fund social programs and job creation initiatives.
- An Aggressive Youth Employment Revolution – The government must abandon its passive approach to job creation and launch a full-scale employment drive for young people. This includes subsidising local industries, incentivising entrepreneurship, and overhauling education to align with labour market demands.
- Absolute Transparency in Economic Gains – If our economy is growing, then the question remains: where is the money? There must be ironclad mechanisms to ensure that economic benefits trickle down to ordinary citizens rather than being monopolised by a privileged few.
Lesotho is on the brink of an irreversible divergence, where the privileged live in a bubble of economic security while the rest are cast into the abyss of perpetual struggle. If we continue on this trajectory, the inevitable consequence is a fractured nation teetering on the edge of collapse.
The government must recognise that this is not merely a matter of economic policy; it is a moral reckoning. A nation is not truly sovereign if its prosperity is gated, accessible only to those who were fortunate enough to be born into privilege or proximity to power.
We must now decide: Will we be a country of shared prosperity or a land of entrenched economic apartheid? The choice is upon us, and history will judge us accordingly.
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