REMARKS
BY MR. M.T. MASHOLOGU ON OCCASION OF OBSERVANCE OF SECOND ANNIVERSARY OF
LESOTHO UNIT TRUST - 21 AUGUST 2003
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Honourable Minister, Distinguished Guests, Ladies and Gentlemen, In the eight years since its establishment by an Act of Parliament the Privatisation Unit has developed interesting habits. One of these habits is to run away from failure, but to embrace success. It should come as no surprise, therefore, if we claim today that the Lesotho Unit Trust is an integral part of the Lesotho Privatisation Programme. Many people mistakenly think of the Privatisation Programme as merely the Sale of State Enterprises. The reality is different. The Privatisation Programme is essentially a factor in the restructuring of the Lesotho economy away from State domination to a Smart Partnership among Government, the Private Sector, and the Public at large. The Lesotho Unit Trust is part and parcel of the restructuring of the economy. 2. The economic reforms are aimed at, among other things, providing opportunities for Basotho investors to participate directly as investors in the Privatised enterprises. The Lesotho Unit Trust has therefore been designed specifically as a vehicle through which Basotho and other investors can purchase a mixture of shares of the profitable companies which the Government has privatised. 3. We in the Privatisation Programme take pride in the success of the Lesotho Unit Trust on its Second Anniversary. We thank the Central Bank of Lesotho for its stewardship over the birth of the Lesotho Unit Trust. We congratulate the Management of Unit Trust on their achievements. We wish the investors successful returns. We commend the Government for this initiative which mobilises and channels local resources into productive investment in the economy. We also salute the wisdom of the Government policy of retaining shares in privatised companies for Basotho investors. We also note with appreciation that the Government will be submitting to Parliament further legislative proposals to strengthen the Lesotho Unit Trust. 4. Recently the Lesotho Unit Trust has acquired shares in the Lesotho Brewing Company. The mixture of shares which is marketed to Basotho investors will in future include shares of the Lesotho Brewing Company which is one of the Lesotho companies with an established track record of profitability. The Management of the Lesotho Unit Trust and the Privatisation Unit are always keeping a watchful eye on the performance of the privatised enterprises for more companies to be included in the Lesotho Unit Trust portfolio. It is an open secret that we are currently looking closely at companies such as Imperial Fleet Services, Lesotho Flour Mills, and Telecom Lesotho. 5. We in the Privatisation Unit fully realise that the Lesotho Unit Trust is still a relatively new investment vehicle for the public at large. We are aware that this redirection of private investment requires a lot of public education and explanation to be successful. We have therefore collaborated with the Management of the Lesotho Unit Trust in public awareness campaigns through radio programmes, brochures, and road show presentations throughout Lesotho. More needs to be done to provide basic information to the public at large on how a modern economy functions, and the key role of the public as investors in the economy. Poverty reduction and wealth creation demand that we must all deepen our understanding of the fundamental elements of the economy such as the importance of generating savings, of wise investment of resources in productive activities, and stimulation of increased productivity in all sectors of the economy. 6. In conclusion let us say that the Lesotho Unit Trust is a part of a new dawn for Lesotho, part of the vision for a new prosperous nation in which all citizens can invest in the growth of the economy, and share in the benefit and rewards of a productive economy. Director, Privatisation Unit 21 August 2003 |
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