Staff Reporter
The African Continental Free Trade Area (AfCFTA) Secretariat has invited Lesotho to a capacity-building workshop for the Southern Africa Region on Special Economic Zones (SEZs).
The workshop, scheduled to take place virtually from Monday to Wednesday, aims to explore the significance of SEZs in contributing to economic development in African countries and their impact on intra-African trade, as well as the opportunities provided by the AfCFTA Agreement for trading goods produced in SEZs.
A note verbale from the AfCFTA Secretariat, addressed to the Embassy of Lesotho to the Federal Democratic Republic of Ethiopia and Permanent Mission to the African Union (AU) in Addis Ababa on October 24, 2024, requested that the relevant government authorities nominate representatives from the Ministries in charge of Trade and Industry and Customs Administrations/Revenue Authorities to participate in the workshop.
This invitation follows a report by Newsday on October 18, 2024, which claimed that the government planned to commit to a 99-year agreement with a supposed Swiss financial group, iSwiss, to establish SEZs in Lesotho.
The report came after a meeting on October 17, 2024, where the Ministry of Trade and Industry invited stakeholders to validate the “final draft” Lesotho Special Economic Zones (SEZ) policy for 2024-2029.
The draft policy, which has sparked controversy, reads more like a contract than a developmental framework and explicitly names iSwiss as the exclusive partner for establishing SEZs in the country.
According to the draft, the Government of Lesotho (GoL) and iSwiss would establish a joint venture, with the government holding a 25 percent stake and iSwiss retaining 75 percent.
The document further states that the joint venture would have exclusive rights to create and manage the SEZs in compliance with local laws.
iSwiss, an international financial conglomerate based in Switzerland, operates under various names, including iSwiss, Legal Credit, iSwiss Insurance, iSwiss Bank, iSwiss Pay, iSwiss Securities, and Alva Fin, among others.
However, the Ministry’s public relations officer, Lihaelo Nkaota, issued a statement refuting parts of the Newsday article.
Nkaota stated: “The recent article published by Newsday newspaper dated 18-24th October falsely claims that the government has signed a 99-year deal with iSwiss. This information is incorrect. No such deal has been signed by the government.”
She further clarified that the meeting on October 17, 2024, was not to validate the SEZ policy, but rather to discuss the feasibility study with business associations and other stakeholders. She emphasized that the ministry had not yet adopted any SEZ policy.
Newsday responded by affirming that, while formal validation may not have occurred, stakeholders were invited to review and validate the policy.
The publication argued that if the draft policy had been validated, it would have moved to the next stage, potentially binding the government to the commitments outlined in the document, including obligations toward iSwiss.
Prime Minister Ntsokoane Samuel Matekane remains tight-lipped on the issue.
Last week this publication sent questions to the Office of the Prime Minister seeking clarification on whether the cabinet including the prime minister were informed about the SEZ policy and, if so, whether they explicitly endorsed the inclusion of iSwiss in the draft policy.
This publication also asked whether the cabinet, like the public, was surprised by the mention of iSwiss as a designated partner.
Additionally, Newsday wanted to know if, subsequent to its articles regarding this issue, the prime minister had had a formal discussion with the Minister of Trade, Industry, Business Development, and Tourism, Mokhethi Shelile, to address these matters.
The prime minister’s office has yet to respond.
On October 25, Newsday reported that a former employee of the Ministry of Trade and Industry, Business Development, and Tourism, Lesole Maleke, disclosed that iSwiss first met with Minister Shelile upon its arrival in Lesotho earlier this year.
“I was introduced to the company by him (Shelile) and he asked me to help register it (iSwiss Company). I worked in that ministry for a very long time, about 37 years, so I know much about business registration. However, I do not work there anymore,” Maleke told this publication.
Maleke explained that the company needed a local representative to fulfil the registration requirements in Lesotho, which led to him becoming its agent.
Shelile confirmed that he directed iSwiss to Maleke for assistance.
“I met with them in Dubai and we had a discussion on (SEZs) Special Economic Zones. When they arrived in Lesotho, they naturally came to my office first. I referred them to an available staff member to assist with their registration, and that happened to be Mr. Maleke,” he explained.
The minister emphasised that this is a common practice and noted that it was not unusual for investors to approach his office initially before being referred to the appropriate department for further assistance.
He asserted that there was nothing sinister or controversial about this process.
