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Kingdon of Lesotho

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  • Overview
  • Official Resources
  • COVID-19 Restrictions
  • Economic Measures
  • Civic Freedom Tracker

Overview

Lesotho reported its first COVID-19 case on May 14, 2020, and cases have been rising since then (source: https://COVID 19.who.int/region/afro/country/ls). Lesotho created an inter-ministerial committee to coordinate the response to COVID-19 and adopted a range of containment measures, including social distancing, travel restrictions, declaration of a national state of emergency, closure of borders to all but essential goods, closure of schools, extension of initial 21-day lockdown of the country for two weeks (until May 5) and suspension of some businesses (e.g. gyms, hair/beauty parlors, arcades, liquor stores, etc.). The Ministry of Health has developed a Preparedness and Response Plan. The Government has developed the National COVID-19 Response Integrated Plan 2020 in collaboration with development partners.

On July 29, 2020, the IMF Executive Board approved SDR 34.9 million (50 percent of quota) in emergency financial assistance under the Rapid Credit Facility (RCF) and the Rapid Financial Instrument (RFI) to support authorities’ efforts in addressing the severe impact of the COVID-19 pandemic. The Government committed in its Letter of Intent requesting the emergency financing from the IMF to implement specific measures on transparency and accountability of COVID-related spending.

Reopening of the economy. The lockdown of the country was relaxed since May 5, 2020.Private businesses (non-essential) gradually reopened but some (e.g., alcohol) followed WHO’s recommendations. The lockdown was lifted on May 19, 2020, albeit with compulsory use of masks in public spaces and restrictions in high-risk sectors such as tourism, sit-in restaurants, entertainment and assembly of more than 50 people.Public servants already went back to work but practice social distancing. Schools have reopened gradually under the guidance of ministry of education.

However, since December 2020, COVID-19 infections and death tolls have increased sharply, the alert level has been raised twice from "Blue" to "Purple" to "Orange" within one week (December 29, 2020–January 4, 2021). The alert level was further raised to the highest "Red" level, triggering a second full national lockdown from January 14, initially for 2 weeks, and subsequently extended until February 3, 2021. The alert level was lowered back to "Orange" on February 4, 2021, with most of the restrictions remaining in place on various political, religious, and social gatherings, as well as businesses and recreational activities. All schools were closed, and a curfew was put in place. Borders, including airports, were closed, except for the movement of essential goods and services. Following a decrease in positivity rates, the alert level was lowered on March 1 from "Orange" to "Purple". On April 27, 2021, the alert level was further lowered to "Blue" with lighter restrictions. Schools have reopened with COVID protocols. International travel has also resumed, and businesses have been granted longer hours of operation, including accommodations facilities in the tourism industry and public recreational areas. Moreover, entertainment and sporting activities are set to resume, albeit with some restrictions, as well as political rallies, which have been banned since March 2020. The sale of alcohol is still restricted, and a curfew remains in place.

Vaccine DevelopmentLesotho received the first batch of 36,000 doses of the AstraZeneca vaccines under the COVAX facility on March 3, 2021, and the roll-out to vaccinate health professionals with the first batch has been underway nationally since March 10, 2021. As of April 22, 2021, 20,267 Basotho have already been vaccinated, including government leaders, members of parliament and health workers. The Government has paid a deposit of LSL25 million to procure 1.1 million Johnson & Johnson vaccine, which are expected to arrive in May 2021. The second batch of 36,000 doses of AstraZeneca vaccines under the COVAX facility was—donated by France—was delivered on May31. The total vaccines via the COVAX facility are eventually expected to cover 20 percent of the population, while the Johnson & Johnson vaccine is expected to cover the next 40 percent. A private sector-led initiative has raised over LSL40 billion for vaccine procurement of Russian Sputnik V vaccine. However, the Ministry of Health refused to authorize this on grounds that the vaccine has not been approved by WHO.


Official Resources

No data


COVID-19 Restrictions

Movement Restrictions:

  • Is a curfew in place? YES
    Under Blue Alert (Level 2), the curfew will apply from 2200 until 0400 daily.
  • Are there restrictions on intercity or interstate travel? NO

Transportation Options

  • Are commercial flights operating? YES 
  • Is public transportation operating? YES 

Economic Measures

Key Policy Responses as of June 3, 2021
FISCAL
  • PFM
    Introduced quarterly warrants to contain non-pandemic spending to create space for pandemic spending.
  • TAX POLICY ADMINISTRATION
    Company Income Tax filing season extended to the end of September 2020.
  • SOCIALMITIGATION

    The authorities spent LSL213.5 million on pandemic-related social assistance (around 0.7 percent of GDP) for up to three months in FY20/21. Measure included:

  • Increasing existing benefits (LSL50.1 million, 0.2 percent of GDP). The government topped up cash transfers to existing beneficiaries (50,000 existing households under the Child Grants Program and 12,741 existing destitute families Public Assistance Program) by LSL831 per month (Jul–Sep 2020).

  • Payments to new beneficiaries (LSL112.1 million, 0.3 percent of GDP). Under the Public Assistance Program, cash transfers (LSL831 per month)were provided to 10,000 newly destitute families (Jul–Sep 2020) and 45,000 persons aged 60–69 (May–Jul 2020).

  • Food security (LSL46.0 million, 0.1 percent of GDP).

  • Cash support to beneficiaries in privately-owned care facilities housing (1,335 children, 23 elderly persons, and 651 persons with disabilities) (May–Jul 2020).
  • Food parcels for vulnerable households (up to 100) across community councils (Jul–Sep 2020).
  • Food stamps to vulnerable Basotho living in South Africa (9,000–12,000) (Jun 2020).
  • Food and/or cash transfers (LSL831 per month) to acutely vulnerable households (72,626) with livelihoods affected by poor planting and COVID-19 mitigation measures.
  • Under School Feeding Program, take-home rations for early childhood care and development and primary school-going vulnerable children (72,200) (May–Jul 2020)
  • Gender and sports (LSL5.2 million, < 0.1 percent of GDP).

  • Support to gender-based violence (GBV) survivors.
  • Stipends for 14 premier league clubs
  • Cash grants for athletes in other sporting codes.
  • ECONOMIC MITIGATION MEASURES
    LSL698 billion (about 2 percent of GDP) for National COVID-19 Secretariat (NACOSEC) for the National COVID-19 Response Integrated Plan 2020. More than half of which was used for health care personnel and purchase of critical goods and services, with the remainder covering logistics, security, and border management, as well as helping informal-sector vendors (LSL500 per vendor), covering business rent for May 2020 and providing 75 percent partial credit guarantee for firms.
  • LSL130 million agricultural subsidy, up to 60 percent subsidy on agriculture inputs for summer cropping.
  • LSL170 million salary subsidy for textile industry workers; (iv) LSL50 million grant scheme to MSMEs, especially in tourism (LSL20,000 matching grant to companies with less than 50 employees).
  • LSL1.5 million for other measures (including PPE).
MONETARY AND MACRO-FINANCIAL
  • On March 23, 2020, following an extraordinary meeting of the Monetary Policy Committee (MPC), the Central Bank of Lesotho (CBL) announced (i) an increase of the NIR target floor from US$630 million to US$660 million, and (ii) a reduction of the CBL policy rate by 100 basis points from 6.25 to 5.25 percent. To encourage the use of non-cash payments, the CBL has negotiated with mobile network operators the removal of fees for transactions below M50 and temporarily raised mobile money transaction limits. On April 14, following another extraordinary meeting of the MPC of the CBL announced a reduction of the CBL policy rate from 5.25 to 4.25 percent. On May 22, the CBL further cut its policy rate to 3.75 percent and reduced the NIR floor from US$660 million to US$530 million. On July 28, the CBL cut its policy rate by another 25 bp to 3.50 percent and raised NIR floor from US$530 million to US$550 million. The MPC further raised the NIR floor to US$635 million on November 24, to US$670 million on January 26, to US$720 million on March 30, and further to US$800 on May 24 to safeguard the peg between the Loti and the South African Rand.

    Additional financial sector measures were also adopted: (i) Banks were directed to suspend loan repayments for three months, and insurance companies to suspend premium payments. At the end of June, the bank-related measures were extended to September; (ii) The implementation of Basel II.5 was postponed to enhancing banks’ capacity to lend; (iii) Banks and insurance companies were instructed not to pay dividends to shore up capital and liquidity; and (iv) the CBL used moral suasion to encourage banks to reduce fees on digital platforms.

EXCHANGE RATE AND BALANCE OF PAYMENTS
  • No measures. The local currency is pegged to South Africa’s Rand., which depreciated substantially during the first few months since the COVID-19 outbreak but gradually bounced back later on.

 

Civic Freedom Tracker

DECLARATION OF COVID-19 STATE OF EMERGENCY ORDER 26 OF 2020

The Prime Minister declares a national "state of emergency" and orders a nationwide lockdown, beginning March 30. All social gatherings are prohibited except for funerals where not more than 50 people are expected to attend. The decree also provides that members of the press must "refrain from publishing fake news." (See primary source or citation here)

Type: order
Date Introduced: 18 Mar 2020
Issue(s): Assembly, Disinformation, Emergency, Press Freedom, Expression, Access to Information, Movement

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