Credit ratings don’t lie
They have equally not been able to explain why both the African Union and United Nations Peace structures have had a say in recent weeks about the situation in Lesotho leading them to decide to establish a liaison and support for SADC in its endeavours to bring about peace and stability in Lesotho.
They have equally been unable to explain why two structures of the US government, MCC and the Trade Section in the President’s office dealing with AGOA have all been insisting on implementation of the SADC decisions arising from the Phumaphi report.
The only thing that one increasingly hears is the mumbo-jumbo about sovereignty and ill-thought-out aspersions about some of the regional leaders who are handling the Lesotho case.
State propagandists are however increasingly finding that what they publicly say and what happens on the ground are completely different.
Three examples will suffice to illustrate
How else does the EU suspend its budgetary support scheme to Lesotho’s budget if these are merely perceptions of political instability?
My take is that Fitch is only being generous and diplomatic on Lesotho’s sorry state of affairs and security challenges.
These are all glaring for all to see and observe. It does not need a rocket scientist to discern that our economy and security landscape is fast going down the precipice.
However, to its credit Fitch observes that the prevailing “political tensions are complicating any policy response to the growing fiscal deficit”.
It goes further to opine that, in Lesotho, “The governance and institutional environment have weakened significantly following an alleged coup attempt in 2014 , as evidenced by the deterioration in World Bank indicators. The recent SADC commission of inquiry report its investigation into the death of former army general highlights the institutional weaknesses”.
Fitch goes further to disturbingly warn that it does not expect any meaningful improvement in the political environment in the shortterm.
The above disturbing scenario
painted by the internationallyacclaimed and reputable global credit rating agency, Fitch, on Lesotho’s economy ought to sound alarm bells to those in power to embark on some remedial action to address this negative rating.
They better take a cue from the economic giant South Africa, which immediately upon learning of the country’s decline in international credit ratings, sends its finance minister on an international charm offensive to allay fears of both the domestic and internation-
Lesotho for its part has to take note and put into practice the old adage that: “charity begins at home”.
The economic and political problems that beset Lesotho are homegrown and they ought to be addressed.
This scenario demonstrates clearly that global credit ratings do not lie as our governments spin doctors would like us believe that our country is stable, credit-worthy and politically stable.