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Slow work permit issuance irks FDI- Metsing

In Local News, News
April 15, 2016

 

Bereng Mpaki

GOVERNMENT has moved to expedite the process of obtaining a work permit by bringing the application process under one roof.

This was revealed by Deputy Prime Minister Mothetjoa Metsing during a media briefing to discuss his recent visit to the United Kingdom (UK) to seek investment.

The decision was made in response to concerns raised by prospective UK investors that the country needed to speed up its issuance process which was cumbersome.

DPM Metsing led a delegation of government officials and business executives to the UK on the visit from 4-6 April. The delegation consisted of ministers of trade and industry, mining, and tourism, representatives from Lesotho National Development Corporation as well as members of the private sector.

“One issue that was raised as a long-term concern by prospective investors was the challenge in obtaining work permits in Lesotho. They complained that the process took a long time and this dampened their desire to invest in the country,” DPM Metsing said.

“The government has therefore decided to bring together all the permit related services under one office where they will be offered together to speed up the process.”

He also said although the application processes were guided by the law, a temporary arrangement would be put in place to assist the investors as they brought huge benefits to the country.

“It should however, be clear that some of these processes are guided by existing laws and regulations in the country. The cabinet has ordered a temporary arrangement for easier provision of those services.

The first step towards obtaining a work permit involves the completion an application form which is then submitted to the Commissioner of Labour in the Ministry of Employment and Labour.

The applicant is also required to submit copies of the employment contract and tax clearance certificate of the prospective employer among several requirements.

If the application is approved, the applicant is required to make an appearance at the Central Police Station (in Maseru) and be formally issued with the work permit. The police will also take photographs of the successful applicant.

DPM Metsing said the government’s decision had been welcomed by existing and potential investors who gave positive feedback during the investment forum.

“I want to point out that this new arrangement to ease the process of issuing work permits has spurred on existing investors. Letšeng Diamonds indicated it would be increasing its investment by M400 million,” DPM Metsing said.

“Liqhobong Mine intends to invest about M2.4 billion. They had already spent about 76 percent of that amount but they were beginning to have doubts about investing more. However, as a result of this arrangement as well the deliberations we had in the UK, they have said that they will go ahead with their planned investments.”

He said they also made presentations on investing in the areas of energy, tourism, trade and industry.

“This has been a successful trip and we believe that the prospective investors we met will come to Lesotho to verify what we presented to them before proceeding to invest. When that happens, Basotho will benefit from employment opportunities and the country will benefit from taxes,” he said.

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