MIL Africa Engine

Source: APO

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Guinean authorities must urgently reveal the fate and whereabouts of National Front for the Defence of the Constitution (Front national de défense de la Constitution – FNDC) activists Oumar Sylla and Mamadou Billo Bah, who were forcibly disappeared a year ago, and ensure that those suspected to be responsible for the abductions and enforced disappearances in Guinea are brought to justice in fair trial and victims and family members of victims are provided with access to justice and effective remedies, said 25 Guinean and international human rights organizations.

“We call on the Guinean authorities to break their unbearable silence regarding the fate of the two FNDC activists. There is no indication that they have carried out investigations to find the two activists who have been missing for a year,” the human rights organizations said today.

Mamadou Billo Bah and Oumar Sylla, known as Foniké Menguè, were arrested on 9 July 2024 at the latter’s home in Conakry by armed men, before allegedly being taken by special forces to the Loos archipelago. They were interrogated and tortured, according to a third member of FNDC who was abducted with the two others and released the day after. The authorities have denied holding them and their fate remains unknown to this day.

The FNDC, a civil society movement calling for a return to civilian rule, was disbanded in 2022. Oumar Sylla, its national coordinator had called for demonstrations on 11 July 2024 against, among other things, repression of the media and the high cost of living.

Since the Prosecutor General’s announcement on 17 July 2024 of the opening of ‘thorough and complete’ investigations into several abductions, including those of Oumar Sylla and Mamadou Billo Bah, no information has been made public about their progress.

Multiplication of cases of abductions and disappearances

Journalist Habib Marouane Camara, managing director of Le Révélateur news website, was abducted in Lambanyi, a commune of Conakry, on 3 December 2024 by men in uniform, according to witnesses. On 6 December 2024, the Dixinn public prosecutor’s office declared that the ‘arrest was carried out without orders from the constituted authorities and outside the cases provided for by law’, announcing that an investigation was underway. To date, there has been no news of the journalist’s whereabouts.

“Since these announcements, no information has been made public by the authorities. We call on them to shed full light on the cases of abductions and disappearances in the country by conducting prompt, independent, and transparent investigations into these cases. We also call on the authorities to ratify without reservation the International Convention for the Protection of All Persons from Enforced Disappearance,” said the human rights organizations.

In addition to these cases, there have been abductions followed by acts of torture on individuals known for their critical views. On 19 February 2025, the national coordinator of the Forum of Social Forces of Guinea (Forum des forces sociales de Guinée), Abdoul Sacko, was abducted and found the same day, according to his lawyers ‘in a critical state, tortured and abandoned by his abductors in the bush’.

Lawyer Mohamed Traoré suffered the same fate in June 2025. The former President of the Guinean Bar Association has testified that he was ‘subjected to abuse’ after being abducted from his home on the night of 20 to 21 June by armed men. The Bar Association reported that he had been found ‘with his back covered in wounds’. On 23 June, the public prosecutor again announced the opening of an ‘in-depth investigation into the facts’.

‘A climate of terror’

Following the abduction of Abdoul Sacko, the Bar Association denounced ‘the climate of terror that is gradually taking hold and […] the total lack of reaction from the judicial authorities’.

Our organizations spoke to lawyers and political actors who say they have been threatened.

A leader of an opposition party has been in hiding for several months, after receiving threats by phone and after people in plain clothes went to his home in his absence, making threats. Another politician said that he frequently changed his residence and route after receiving threats.

A lawyer said: ‘Since I started defending certain people critical of the government, I have received at least four calls confirming that I am on the list of people whose abduction is planned’.

A human rights defender said he had been alerted after his statements denouncing the abduction of Mohamed Traoré: “I have received two calls from people I know in the judicial system urging me to leave my home because I would be next on the list according to their information. I take this very seriously, I make sure I’m never alone”.

“We call on the Guinean authorities to respect their international human rights obligations to respect, protect, promote and fulfil the human rights of everyone in the country, as they have undertaken to do before the United Nations Human Rights Council in April 2025 during the Universal Periodic Review, in particular the rights to freedom of expression and peaceful assembly and the rights of human rights defenders,” said the Guinean and international human rights organizations.

Signatories

• Action pour des Personnes Vulnérables (APV)
• Alliance des Femmes Leaders pour la Parité en Guinée (AFLPAG)
• Alliances des Médias pour les Droits Humains en Guinée (AMDH)
• Amnesty International
• Assistance Justice Aux Droits des Enfants et Femmes (AJDEF)
• Association des Blogueurs de Guinée (ABLOGUI)
• Association des Victimes, Parents et Amis des évènements du 28 septembre 2009 (AVIPA)
• Avocats Sans Frontières Guinée (ASF Guinée)
• Centre Africain de Formation et d’Information sur les Droits de l’Homme et de l’Environnement (CAFIDHE)
• Conseil Consultatif des Enfants et Jeunes de Guinée (CCEJG)
• Coalition des ONG de protection et de promotion des Droits de l’Enfant, Lutte contre la Traite  (COLTE/CDE)
• Convention Guinéenne des Droits de l’Homme (COGUIDH)
• Convergence des Jeunes Leaders pour la Paix et la Démocratie (COJELPAID)
• Coordination des Jeunes Cadres Volontaires pour le Futur (CJCVF)
• Fédération Guinéenne pour la Promotion des Associations des Personnes Handicapées (FEGUIPAH)
• Fédération internationale pour les droits humains (FIDH), dans le cadre de l’Observatoire pour la protection des défenseur.es des droits humains
• Forum Civil Guinéen
• Jeune Action pour la Santé et le Développement (JASD)
• Leadership Jeunes pour la Paix et le Développement en Afrique (LEJEPAD)
• Organisation Guinéenne de Défense des Droits de l’Homme et du citoyen (OGDH)
• Organisation mondiale contre la torture (OMCT), dans le cadre de l’Observatoire pour la protection des défenseur.es des droits humains
• Organisation Secours aux Handicapés de Guinée (OSH Guinée)
• Union pour le Bien-Être des Personnes Atteintes d’Albinisme (UBPAAG)
• Women of Africa (WAFRICA Guinée)
• Women Hope Guinée (WHP)

Distributed by APO Group on behalf of Amnesty International.

Source: APO

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A General Court Martial, supported by the South Sudan People’s Defense Forces, concluded in Wau, Western Bahr el Ghazal, on 5 July. It was preceded by two investigation missions to Wau and Jur River counties where 34 pending cases were reviewed.

Subsequently, the military court adjudicated 20 criminal cases, convicting nine members of the SSPDF, stripping them of their ranks and dismissing them from military service.

Notably, the General Court Martial delivered verdicts on two cases related to sexual and gender-based violence, resulting in convictions of seven and 10 years, respectively. Additionally, a conflict related sexual violence case involving multiple assailants and an underage victim was adjudicated, a first of its kind for such military court martials in South Sudan.

The highest-ranking member of the SSPDF convicted was a Lieutenant Colonel, for the loss of a weapon. Two civilians in detention were released from military custody since they do not fall within the jurisdiction of a military court, while another civilian on trial for killing two SSPDF soldiers was sentenced to two years imprisonment and ordered to pay 62 heads of cattle or a monetary equivalent as blood compensation to the victims’ families. 

The Court also heard six  cases involving conflict related crimes committed during clashes in February 2025 in Kwajiena village, Jur River county. A lack of identification of assailants by victims, despite strong testimonies, did not lead to prosecutorial action in this regard. However, the hearing resulted in a directive to the state government to award financial compensation to all victims in accordance with South Sudan’s civil procedure code.

The General Court Martial team included two female judge-advocates to ensure that both female and male victims and witnesses were supported during the process. All victims also had access to two civilian victims’ counsel, who provided free legal advice and actively participated in the proceedings to protect victim rights and help them navigate the justice process. 

This military court was followed by a civil-military dialogue in Wau with a focus on joint efforts to combat sexual violence. The aim was to strengthen trust between uniformed personnel and communities, as well as obtain real time feedback on the impact of such military justice interventions on host populations.

The Wau General Court Martial was funded by the generous support of the Royal Norwegian Embassy in Juba. In particular, it builds on the work of similar military proceedings that took place in Wau in  2022, which resulted in convictions of eight members of the SSPDF for murder. The convicted soldiers were stripped of their ranks and dismissed from the SSPDF.

As part of its ongoing efforts to strengthen justice mechanisms and rule of law processes, the United Nations Mission in South Sudan (UNMISS) also provided funding for victims and witnesses to receive psychosocial support before, during, and after trial.

Distributed by APO Group on behalf of United Nations Mission in South Sudan (UNMISS).

Source: APO

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President John Dramani Mahama has bid farewell to the outgoing German Ambassador to Ghana, Daniel Krull, during a meeting at the Credentials Hall within the Presidency. The courtesy visit marked the conclusion of Ambassador Krull’s four-year term of duty, which President Mahama described as highly productive.

President Mahama reiterated Ghana’s commitment to building on the strong foundation of bilateral relations between the two countries. He emphasised the potential for deepened cooperation, particularly in the critical areas of economic development and security.

The President specifically commended Germany for its consistent support towards enhancing Ghana’s security architecture, citing significant contributions to the Kofi Annan International Peacekeeping Training Centre (KAIPTC) and capacity-building initiatives for security personnel.

Addressing the evolving security landscape in the sub-region, President Mahama highlighted the growing threat posed by extreme terrorism, especially prevalent in the Sahel. He expressed Ghana’s readiness to work closely with Germany on targeted capacity training programmes aimed at bolstering regional efforts to combat this menace.

Touching upon the complex issue of irregular migration, President Mahama outlined Ghana’s collaborative efforts with international partners, including the International Organisation for Migration (IOM) and the European Union (EU). He stressed the importance of creating sustainable local opportunities for young people to mitigate the risks associated with perilous journeys across the Sahara and the Mediterranean.

President Mahama conveyed Ghana’s deep appreciation for Ambassador Krul’s service. “We appreciate you. You’re a friend of Ghana. And you’re welcome to visit any time you miss Ghana. You’re welcome to visit. And I wish you all the best in your future endeavours.”

Distributed by APO Group on behalf of The Presidency, Republic of Ghana.

Source: APO

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Kholo Capital Mezzanine Debt Fund I (“Kholo Capital”) (www.KholoCapital.com) announced today the injection of a R200 million mezzanine debt growth funding facility into Bayport Securitisation (“Bayport South Africa” or “Bayport SA”) to support the roll out of the Bayport SA Financial Wellness Solutions Programme. Bayport SA is committed to alleviating employee over-indebtedness in South Africa and promoting long-term financial wellness of employees. This is achieved by offering them with practical debt solutions, which include debt reduction through negotiating settlement terms and discounts with creditors, halting legal action where possible, and improving employees’ credit scores, through its financial wellness solutions programme.

Through the Bayport SA Financial Wellness Programme, Bayport SA addresses the widespread issue of over-indebtedness among South African employees. By providing tailored debt reductions (wherein the benefit of all settlement discounts negotiated with creditors is passed to the employees), debt consolidation and rehabilitation solutions, Bayport enables employees to regain financial stability and improve their long-term financial standing. The programme includes structured debt management processes and financial literacy initiatives, ensuring that employees not only reduce their debt obligations and debt repayments resulting in financial breathing room but also develop healthier long-term financial habits.

Recent market data indicates that more than 60% of employed individuals in South Africa are struggling with over-indebtedness, while less than 14% of the South African population can afford to retire. Alarmingly, an average of 74% of income is spent on debt repayments, with 49% of all consumers falling more than one month behind on at least one loan. These findings highlight a critical socioeconomic issue that not only affects individual well-being and family units, but also impacts workplace productivity, stability, and staff morale.

As a vital component of its initiative, Bayport SA offers employees, through partnerships with employers, a structured 10-week financial wellness journey aimed at providing both immediate relief and fostering long-term behavioural change. Employees can expect significant improvements in monthly cash flow (i.e., including significant debt reduction), enhanced expense management, and the ability to effectively plan for future financial milestones. The program includes personal financial health assessments, individualized coaching, and practical exercises to build sustainable financial habits. Additionally, employees engage in peer-led group sessions that promote accountability and support the development of effective money management practices.

To further amplify the financial wellness program’s impact, Bayport SA supplies a range of digital tools and support services. These include a gamified financial wellness app that facilitates goal tracking and provides access to educational resources, along with one-on-one sessions with personal money coaches throughout the journey. The Bayport SA Academy offers online financial education and workshops to enhance financial literacy, while structured emergency credit facilities provide responsible short-term relief as an alternative to high-cost payday loans.

Bayport SA is currently in partnership with more 70 employers across various industries in South Africa, including blue-chip corporations in FMCG, financial services, telecommunications, automotive, and mining sectors, as well as government entities at local, provincial, and national levels.

Mokgome Mogoba, Managing Partner and Founder at Kholo Capital, remarked: “The positive ESG and social impact on the South African society by Bayport SA is substantial as the company provides significant debt relief to over-indebted employees. We are very passionate about financial inclusion and this investment achieves that. Bayport SA’s intervention in the South African economy is significant and measurable. Settlement discounts negotiated with creditors on behalf of employees can range between 25% and 80% of the total debt amount outstanding. The average increase in monthly disposable income is R7,450, representing 32.8% of the average basic salary of R22,865. This increase in financial flexibility is directly correlated with a substantial reduction in the total debt amount outstanding and reduction in monthly debt repayment obligations.”                                                                                                                        

Zaheer Cassim, Managing Partner and Founder at Kholo Capital, asserted: “Bayport SA’s securitization program, is one of the best in South Africa. There has never been any payment defaults or covenant breaches, even during the challenging period of the COVID-19 pandemic. The securitization program is supported by leading South African institutional investors and South African banks. Bayport SA is also highly regarded for its first-class management team, transparent reporting practices and strong management engagement, with regular investor reporting and quarterly meetings with investors. The business is supported by strong shareholders of reference which include the Public Investment Corporation (PIC). We are very pleased with this investment in Bayport SA, and we look forward to supporting this highly talented and highly motivated management team in their vision to grow the business, by providing financial wellness solutions to the South African people.”

Alfred Ramosedi, Chief Executive Officer of Bayport SA, commented: “We are proud to partner with Kholo Capital, whose commitment to impact investing aligns seamlessly with our mission to drive meaningful financial change. As one of South Africa’s leading financial wellness companies, this funding will enable us to scale our reach and deepen our impact – empowering even more South Africans with the tools and support to break free from debt and build financially resilient futures.”

Norton Rose Fulbright acted as legal counsel to Kholo Capital and Werksmans acted as legal counsel for Bayport SA.

Distributed by APO Group on behalf of Kholo Capital.

Notes to Editors

About R1,4 billion Kholo Capital Mezzanine Debt Fund I

Please keep Kholo Capital Mezzanine Debt in mind whenever equity funding is needed, we can plug some of the equity funding gap with mezzanine debt loan funding (subordinated loans) so that shareholders don’t give up too much equity and don’t suffer too much equity dilution.

The R1,4bn Kholo Capital Mezzanine Debt Fund provides mezzanine debt funding R70m to R205m to medium sized businesses generating minimum R25m EBITDA per annum. We can invest in all sectors including real estate (but excluding primary mining, resources, commodities, primary farming, micro lending, gambling, ammunition, hard liquor and tobacco). However, we can invest in mining services/products, mining logistics/transportation, mineral processing, and Agri-processing.

We provide growth capital and acquisition funding to mid-market companies with operations in South Africa, Botswana, Namibia, Swaziland, or Lesotho. Investment tenor 4 to 7yrs targeting returns above 17% (interest rate plus equity upside). Leverage up to 3,5x to 4x Total Debt (senior debt and mezzanine debt) to EBITDA and/or up to 80% LTV.

Kholo Capital is passionate about investing in sectors of the Southern African economy with high social impact including financial inclusion, affordable housing, healthcare, education, renewable energy, food security, ICT, and infrastructure. Our guiding business principles include commitment to add sustainable value to our investee companies and to adhere to the best ESG practices. The Fund uses the United Nation’s 17 Sustainable Development Goals as guiding principles with key focus on those linked to job creation and sustainable growth.

We also fund share buy backs, refinancing of shareholder loans and dividend recaps. We also fund management buy-outs, leveraged buyouts and private equity buy-outs.

We can also pay down portion of senior debt bank funding especially where the senior debt has steep capital repayments, in order to create cashflow headroom for the business. Mezzanine debt loan funding is typically 5-6yr flexible bullet loan funding with capital repayable right at the end on the maturity of the loan. The business only has to service interest payments during the loan tenor thereby creating cashflow headroom and the business can re-invest the excess cashflows for growth.

Business or project must be generating minimum R25m EBITDA per annum at the time of investment. Meaning we can’t fund greenfield projects or new developments on a ring-fenced basis. We can look at greenfield opportunities or new projects provided there is an external guarantee (i.e., third party guarantee) from a business (i.e., balance sheet) that generates the minimum R25m EBITDA. The guarantee can fall away once the business meets the threshold and covenants are met.

Also, we can’t fund distressed assets or big turnarounds.

Kholo Capital is a specialist alternative investment fund management company with deep experience and track record in private markets. It was founded in 2020 by Mokgome Mogoba and Zaheer Cassim. The Kholo Capital investment team has more than 100 years of collective credit and investment experience and is highly skilled in senior debt, mezzanine debt and private equity. The investment team has a strong track record in the credit and investment space and has invested in excess of R50bn of mezzanine debt, private equity and senior debt investment transactions in over 90 transactions in more than 10 African countries. Kholo Capital is managed by a cohesive, dynamic and nimble team and the management team has worked together over the last 21 years.

Website: www.KholoCapital.com

Website: www.Bayport.co.za

For more information contact:
Mokgome Mogoba
Managing Partner – Kholo Capital Mezzanine Debt Fund I
mokgome@kholocapital.com
Tel: +27-79-631-5860

Zaheer Cassim
Managing Partner – Kholo Capital Mezzanine Debt Fund I
zaheer@kholocapital.com
Tel: +27-83-786-0845

Source: APO

The situation is particularly dire in El Fasher, the capital of North Darfur province, which has witnessed some of the worst episodes of the ongoing conflict between rival militaries.

Those remaining in El Fasher are facing “extreme shortages” of food and clean water, with markets repeatedly disrupted, UN Spokesperson Stéphane Dujarric told journalists at the regular news briefing in New York.

Across the city, nearly 40 per cent of children under five are suffering from acute malnutrition, including 11 per cent with severe acute malnutrition.

Most of the surrounding water infrastructure has also been destroyed or rendered non-functional due to minimal maintenance and fuel shortages, Mr. Dujarric added.  

El Fasher displacement

Since April 2023, an estimated 780,000 people have been displaced from El Fasher town and the nearby Zamzam displacement camps, including nearly 500,000 in April and May of this year.

Famine conditions have been confirmed in the area since last August.

About three-quarters of Zamzam camp’s residents fled to various locations across Tawila, where the UN and its partners have scaled up critical humanitarian assistance.

Cholera outbreak continues

Mr. Dujarric further warned that the breakdown of water and sanitation services, combined with low vaccination coverage, has sharply increased the risk of disease outbreaks, including cholera.

So far this year, Sudan has reported more than 32,000 suspected cholera cases.

According to the UN Office for Coordination of Humanitarian Affairs (OCHA) cholera cases continue to rise across Darfur, with over 300 suspected cases and more than two dozen deaths reported in South Darfur state last week alone.

“Conflict and collapsing infrastructure continue to drive the spread of the disease and impede response efforts,” Mr. Dujarric stressed.

Unprecedented and complex crisis

Since war erupted between the former allies-turned-rivals, the Sudanese Armed Forces (SAF) and Rapid Support Forces (RSF) in April 2023, tens of thousands of civilians have been killed and more than 12 million forced to flee their homes – including approximately four million as refugees in neighbouring countries.

The crisis is unfolding against a backdrop of extreme vulnerability, as the country remains highly susceptible to the impacts of climate change and disasters.

From severe droughts to deadly floods, the compounded effects of conflict and environmental instability are pushing communities to the brink, leaving them struggling to survive. Famine has already been declared in some parts of the country, putting millions of lives at risk.

Lack of resources hamstring response

Despite growing needs, the $4.2 billion humanitarian response plan for 2025, which aims to assist around 21 million of the most vulnerable people, remains only 21 per cent funded, having received $896 million received so far.

Tom Fletcher, UN Under-Secretary-General for Humanitarian Affairs, underscored the gravity of the situation in El Fasher.

Civilians in the area remain cut off from aid and face the risk of starvation, he said in a post on social media.

Appealing for an urgent humanitarian pause, he warned that that “every day without access costs lives.”

Distributed by APO Group on behalf of UN News.

Source: APO

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• Against a backdrop of low growth, high unemployment, and widespread poverty, Lesotho’s government-led growth model has long struggled to deliver on the authorities’ growth and development goals. Now, an additional set of external shocks has further clouded the outlook. From a modest peak of 2.6 percent in FY24/25, GDP growth is expected to almost halve to 1.4 percent in FY25/26, reflecting a much more turbulent and uncertain external environment. The peg to the Rand has continued to serve Lesotho well, helping bring inflation down from a peak of 8.2 percent in early 2024 to 4.0 percent in April 2025.
• Prudent government spending during FY24/25, along with buoyant South African Customs Union (SACU) transfers and water royalties have once again resulted in a sizable fiscal surplus. This has enhanced longer-term fiscal sustainability and helped strengthen foreign reserves, which supports the peg. Looking forward, increased water royalties from South Africa will further boost revenue, and help offset easing SACU transfers.
• The main challenge for the authorities is to transform these fiscal surpluses into sustainable and high-quality growth — now even more urgent in light of recent shocks. Public funds should be saved wisely and spent strategically, with an emphasis on high-return investment projects. More effective use of public funds, alongside structural reforms, should support longer-term private sector-led growth.

An International Monetary Fund (IMF) team led by Mr. Andrew Tiffin held meetings in Maseru with the authorities of Lesotho and other counterparts from the public and private sectors and civil society from June 4 to 17, 2025, as part of the 2025 Article IV consultation. Discussions focused on the mix of fiscal and monetary policies to ensure macroeconomic stability and debt sustainability, as well as the structural reforms needed to create jobs, reduce poverty, and facilitate the transition to private-sector-led growth.

Context and Outlook

IMF staff estimates suggest that real GDP growth picked up modestly in FY24/25 to 2.6 percent, up from 2.0 percent the previous year. In large part, this reflects spillovers from the Lesotho Highlands Water Project (LHWP-II), which has helped offset declining competitiveness in the apparel sector and the impact on exports of lower diamond prices. Headline inflation was 4.0 percent in April, down from a peak of 8.2 percent in January 2024. The gap between CPI inflation in Lesotho and South Africa mainly reflects the larger share of food in Lesotho’s CPI basket.

Lesotho’s fiscal balance registered a sizable surplus in FY24/25. South African Customs Union (SACU) transfers are up by almost 14 percent of GDP compared with FY23/24, and recurrent spending has remained steady as a proportion of GDP, owing to a moratorium on public sector hiring and a reduction in the in-kind social assistance benefits. Capital spending increased but execution remained short of budgeted levels. The net impact has been a fiscal surplus of 9.0 percent of GDP in FY24/25, which helped lift gross international reserves to 6 months of imports; strengthening the peg. With less issuance of domestic debt, clearance of domestic arrears, and repayment of an IMF arrangement under the Rapid Financing Facility, public debt fell to 56.6 percent of GDP in FY24/25, down from 61.5 percent in FY23/24.

However, a more uncertain global environment has undermined Lesotho’s economic outlook, with growth expected to almost halve to 1.4 percent in FY25/26. In particular, the sudden shift in policies by the United States on tariffs and official development assistance (ODA) will hit the economy hard. Details of US intentions are still unclear, but as a small and vulnerable country, Lesotho is one of the most exposed countries in Africa to changing US priorities. Exports to the United States represent 10 percent of Lesotho’s GDP, and foreign assistance from the United States has typically amounted to around 3½ percent of GDP, mostly concentrated on disease prevention and other critical health needs.

Looking ahead, Lesotho has options. SACU transfers are expected to drop to their long-term average this year (down 6 percentage points to less than 20 percent of GDP). Filling the gap, however, renegotiated water royalty rates under the Treaty with South Africa on the LHWP-II represent a significant source of revenue—rising to almost 13 percent of GDP in FY25/26 and then settling at around 10 percent of GDP every year over the medium term. In sum, domestic revenues are expected to be around 8-10 percent of GDP higher than just a few years ago. On the monetary side, the peg to the Rand continues to serve the economy well and should remain the main focus of monetary policy. Policy rates should continue to follow South African rates closely. The central bank should take advantage of the current easing cycle to close the remaining gap with South Africa.

The key challenge for the authorities is to transform Lesotho’s fiscal surpluses into sustained, high-quality growth. A striking lesson from the country’s recent history, however, is that greater public spending is no guarantee of higher living standards. As a proportion of GDP, for example, government spending in Lesotho is well above international norms—more than double the SACU average. But this has not been matched by improved economic performance. Indeed, real per capita incomes shrunk by 12 percent between 2016 and 2023, and unemployment and inequality remain high. Considering the possible uses of Lesotho’s surpluses, therefore, the main goal of the authorities should be to ensure that this time is different, and that these funds are saved wisely and spent strategically.

Saving Wisely

Greater savings will require continued fiscal prudence. To this end, the authorities should maintain their efforts to control recurrent spending and enhance capacity in tax revenue analysis and administration.

• Contain the wage bill. Lesotho’s wage bill (as a share of GDP) is the highest among SACU members and triple the sub-Saharan African average. Reducing the amount spent on wages has long been a key recommendation of past Article IV consultations. And the government’s continued restraint over the past year has been a critical step in the right direction—this effort should continue, with a continued moratorium on hiring, streamlining of the establishment list, and regular reviews of the compensation system. It should be noted, however, that reducing the wage bill is not an end in itself. Ultimately the objective is a fair and performance-based public employment system that rewards productivity and ensures better delivery of public services.
• Improve tax policy design and strengthen tax administration. The Tax Policy Unit has been established and key staff are being hired. With help from the IMF, the unit’s capacity to accurately forecast revenue and improve tax-system design should be strengthened quickly. On tax administration, a phased reform strategy is being implemented in line with the IMF’s 2023 TADAT assessment. Prompt approval of the two tax policy bills and tax administration bill could help address identified deficiencies in many areas.
• Improve the efficiency of social spending to target the most needy. Social spending is several times that of neighboring countries as a share of GDP but the targeting of social safety schemes should be improved. For example, the tertiary loan bursary fund education scheme (2.7 percent of GDP) provides loans to many who typically do not need support and fail to repay (loan recovery is only 2 percent). A better targeted safety net would not only free resources for the most vulnerable but would also help enhance Lesotho’s resilience to new shocks. In this regard, the authorities should move proactively to take stock of services likely to be disrupted by cuts in U.S. assistance and swiftly develop a coordinated plan to ensure continued delivery of essential health services. More broadly, the authorities should enhance the operation of existing cash transfer programs, reinstate the national digital system for social registry to better streamline the identification and registration of beneficiaries, and accelerate the deployment of new benefit delivery tools.

The authorities should quickly establish a well-governed savings framework (stabilization fund). The details of a framework have been developed in close cooperation with Lesotho’s development partners and aim to ensure a stable source of government funding going forward, which in turn would allow for uninterrupted service delivery even in the face of shocks. With sufficient savings, the fund might also help finance future development spending, such as infrastructure investment. To be effective, the fund needs to be anchored by a clear and credible fiscal rule, which would guide the conditions under which funds are deposited and withdrawn. The fund should also be set within a firm legal framework, with a clear governance structure that is independent from political influence, safeguarding Lesotho’s savings until they can be used wisely. In this regard, the authorities are currently developing the policy, expected by July 2025, that will guide the stipulated legal framework for the stabilization fund.

• Within the framework, a key anchor would be a target for Lesotho’s public debt. Until very recently, debt has trended steadily upward, rising sharply during the COVID-19 pandemic. The decline over the past year has been welcome, but the IMF’s Debt Sustainability Analysis still suggests that, although the risk of debt distress is “moderate,” there is little scope to absorb any further shocks. These might easily push debt to a level where the risk of debt distress is high. A medium-term goal of 50 percent of GDP would be appropriate, as it would allow for greater resilience and is consistent with the debt anchor proposed in the fiscal rules. The authorities should therefore scale back new borrowing but might also consider first retiring existing (high cost) debt. In addition, the authorities should clear any remaining or new domestic arrears as soon as possible.

Spending Strategically

Improved public investment management is needed to increase the quality of capital spending. Before Lesotho’s savings are allocated for investment or infrastructure projects, sufficient controls should be in place to ensure that this investment represents value for money. Historically, high levels of public investment in Lesotho have not resulted in a capital stock of equal quality. And owing to longstanding capacity constraints, the capital budget continues to be significantly under executed. Authorities should take steps to boost the efficiency of public investment, including by creating a centralized asset registry, establishing a prioritized project pipeline and enhancing capacity for project management and monitoring. In this regard, the request for a Public Investment Management Assessment from the IMF is timely and welcome.

In support of efforts to ensure value for money, the authorities should redouble their efforts to enhance Public Financial Management (PFM). Without these measures in place, there is a danger that new revenues will simply be wasted.

• Budget preparation and execution must be strengthened to enhance budget credibility. This requires improved expenditure control through better collaboration between departments, monitoring and identification of mis-appropriated funds, and regular and timely audits. More broadly, the authorities should implement the Medium-Term Expenditure Framework to better align policy objectives with budget allocations over a multi-year timeframe and enhance long-term planning.
• To build further trust in PFM, the authorities should strengthen internal controls within the integrated financial management system. The authorities should accelerate the deployment of digital signatures to strengthen payment processes and prevent the accumulation of arrears.
• The authorities should also continue their efforts to ensure a comprehensive analysis and management of fiscal risks. Several fiscal risks have materialized in recent years, including from collapsed public private partnerships; unquantified arrears; and transfers and contingent liabilities from state-owned enterprises (SOEs). The authorities should further strengthen the effectiveness of SOE management and reporting and continue the release of a fiscal risk statement as part of the annual budget process.

As a matter of priority, therefore, pending PFM legislation should be passed as soon as possible. Currently, the most pressing items include i) the Public Financial Management and Accountability Bill; ii) the Public Debt Management Bill; and iii) secondary legislation to implement the 2023 Public Procurement Act. Together, this legislation will improve the efficiency and transparency of procurement, enhance fiscal responsibility and budget processes, strengthen financial management and fiscal reporting. The legislation will also help ensure that the government’s public borrowing plan is well integrated with the budget process.

With these measures and controls in place, Lesotho would be in a much better position to transform its accumulated surpluses into high-quality growth. In line with the authorities’ announced shift in emphasis from recurrent spending to capital spending, a focus on the cost effectiveness of public investment would allow for increased levels of better-quality investment, and ultimately higher growth. This would naturally entail lower fiscal surpluses going forward. However, in this context, a more relaxed fiscal stance would not necessarily entail a higher debt path, but would instead result in a slower, but acceptable, pace of reserve accumulation.

Supporting Private-Sector Growth

Improved public investment will need to be accompanied by broad structural reforms. Better service delivery and higher-quality investment will be helpful. But the current government-led growth model has resulted in an economy with a small and undiversified private sector—contributing to low productivity, anemic private investment, declining competitiveness, and high informality. In parallel, therefore, the authorities should accelerate efforts to unlock the growth potential of the private sector.

• Supporting financial inclusion and literacy is imperative. Evidence suggests that access to finance remains a key challenge, particularly for small and informal firms. This in turn undermines private-sector job creation. The authorities have addressed this through various interventions, including partial credit guarantees, establishment of a moveable asset registry, and support of a credit bureau. And signs of a positive impact are emerging, particularly in financial access for small enterprises. Building on this success, the new Financial Sector Development Strategy and National Financial Inclusion Strategy are welcome and should be implemented swiftly as a matter of priority.
• Providing a stable, predictable, and well-regulated business environment is also essential. For larger firms, needed reforms include measures to reduce the cost of doing business, and efforts to boost private investor confidence—including through transparent and consistent regulatory frameworks, greater policy consistency, and a clear long-term strategy for infrastructure development. To reverse the long-term decline of some industries (e.g., textiles) and take full advantage of new opportunities, the authorities should focus on coordinating and streamlining the efforts of the Lesotho National Development Corporation and the Basotho Enterprise Development Corporation. The authorities should also enhance the regulatory framework for the establishment, operation, and oversight of SOEs, while developing a strategy for the gradual privatization of non-performing SOEs to enhance efficiency and attract investment.
• Mitigating corruption and strengthening the rule of law is essential to restoring confidence, investment, and growth. Legacy fraud cases point to underlying vulnerabilities in payment and procurement, underscoring the need for the transparency and accountability that would result from successful PFM reform. More broadly, strengthening key bodies such as the Office of the Auditor General and the Directorate on Corruption and Economic Offences (DCEO) would also send a strong signal of the government’s resolve, and help incentivize private sector development. In this regard, the increased funding and expansion of the DCEO has been most welcome.

The IMF team thanks the Lesotho authorities and other counterparts for their hospitality and for a candid and productive set of discussions.

Distributed by APO Group on behalf of International Monetary Fund (IMF).

Source: APO

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His Excellency Ahmed Attaf, Minister of State, Minister of Foreign Affairs, National Community Abroad and African Affairs of the People’s Democratic Republic of Algeria, is on an Official Visit to Singapore from 6 to 8 July 2025 at the invitation of Minister for Foreign Affairs Dr Vivian Balakrishnan. This is Minister Attaf’s first visit to Singapore.

Minister Attaf met with and was hosted to lunch by Minister Balakrishnan today. Both Ministers reaffirmed the good relations between Singapore and Algeria. They discussed ways to strengthen cooperation, including in the fields of economic cooperation and education. Both Ministers had a useful exchange of views on regional developments. Minister Balakrishnan welcomed Algeria’s interest to engage ASEAN and looked forward to Algeria’s signing of the Instrument of Accession to the Treaty of Amity and Cooperation in Southeast Asia at the upcoming 58th ASEAN Foreign Ministers’ Meeting in Kuala Lumpur on 9 July. 

Following their meeting, Minister Attaf and Minister Balakrishnan signed an Agreement on the Mutual Visa Exemption for Diplomatic, Service and Official Passports. This will facilitate government-to-government exchanges between the two countries and support closer people-to-people ties.  

Minister Attaf called on Speaker of Parliament Seah Kian Peng during which they discussed ways to promote inter-parliamentary cooperation. Minister Attaf was also briefed by the Centre for Liveable Cities on Singapore’s experience in urban city management and sustainable development which may be of interest to Algeria.

Distributed by APO Group on behalf of Ministry of Foreign Affairs – Singapore.