…despite impressive MCC scorecard on eligibility
…Lesotho must complete reforms to access funds
Mathatisi Sebusi / Leemisa Thuseho
THE United States has implored Lesotho to complete requisite legislative reforms to eliminate all bottlenecks in accessing crucial development aid under the Millennium Challenge Corporation (MCC) Compact II.
The government must complete all the reforms that constitute conditions precedent to the start of the Compact (also known as entry into force conditions) by March 30, 2024.
Lesotho will benefit to the value of US$300 million (about M6 billion) under Compact II, the Health and Horticulture Compact which will ensure “ greater access to quality healthcare, create equitable business development opportunities, invest in high-value crop production and boost profits and formal employment for women and youth owned enterprises,” according to US Ambassador to Lesotho, Maria Brewer, who spoke on the country’s MCC scorecard performance at State House in Maseru this week.
While the government had done well in improving its score from 14 out of 20 in the 2023 fiscal year which ended on 30 September 2023, to scoring 15 out of 20 indicators in the fiscal year 2024 which commenced on 1 October 2023, it still had to complete the outstanding legislative reforms to meet all the criteria for accessing Compact II.
Ms Brewer commended the government for passing, in December 2022, three laws that form part of the conditions for Lesotho to access the Compact.
These laws were the Counter Domestic Violence Act 2022, the Harmonization of the Rights of Customary Widows with Legal Capacity of Married Person Bills, 2022, and the Millennium Challenge Account- Lesotho Act .
“However, as we commend these accomplishments, it is vital to note that the success of the Health and Horticulture Compact hinges on the government’s continuous commitment and actions.
“To achieve entry into force of the Compact by March 30, 2024, Lesotho must urgently accelerate the enactment of the Labour Bill 2022, occupational health and safety regulations, and additional inheritance reforms.
“Prioritising the enactment of these laws will strengthen Lesotho’s legal framework. It is vital as the compact cannot enter into force until they are enacted….
“The United States stands as your trusted partner in upholding the principles that underpin MCC’s eligibility criteria such as political rights, civil liberties and the rule of law,” Ms Brewer said.
While Lesotho scored highest on the scorecard in terms of health expenditure with 100 percent, education expenditure with 95 percent, access to credit and employment opportunities with 85 percent, it did not fare so well on natural resources protection, trade policy, fiscal policy and land rights access with scores ranging from 2 percent, 41 percent, 47 percent, and 50 percent respectively.
The MCC compact II was signed in May 2022 and is scheduled to be implemented on March 30 2024.
Mr Matekane said his government had identified some of the reasons why they did not do well on some aspects of the compact indicators.
“This is why government is committed to passing the inheritance reforms, with the twin objective of enabling the compact to enter into force by March 2024, and to improve the country’s score on the land rights and access indicators,” Mr Matekane said.
He further noted that his government was committed to promoting gender equality by granting women and men equal access to legal and public institutions, and to participate in economic opportunities.
Mr Matekane said the $300 million Health and Horticulture Compact would propel the country’s economic vision and help fight unemployment and poverty.
He also undertook to ensure that every American dollar invested in the compact was “used effectively to maximize the impact of the Compact in the country”.
