Don't Hit the Panic Buttons, Phafane Cautions Industry

	Don't Hit the Panic Buttons, Phafane Cautions Industry
	Recent upheavals in the textile industry do not call for panic of any form but for an improvement of the investment climate in the country to encourage foreign investors to stay. This is the view of local business consultant and deputy chairperson of the Lesotho Chamber of Commerce and Industry, Mr. Koena Phafane. Lesotho can be turned into an ideal investment destination by, among other things, improving efficiency in handling investors and getting rid of the red tape usually involved in key business transactions, Mr. Phafane says. The expiration of the WTO agreement on textile and clothing on January 01, which saw the lifting of export quotas on textile products from developed economies to large markets abroad, resulted in some Chinese-owned factories closing down at Maputsoe, leaving hapless workers unemployed. Mr Phafane acknowledged that there are constraints that prevent indigenous investors from taking over the industry, such as a lack of both the financial muscle and the know-how to make any serious bid. Accessing loans is not easy as financial institutions consider Basotho a high risk. It is, however, the responsibility of individuals, associations and government alike, to inculcate a culture of sound business practice and management in local business people, Mr Phafane said. 01 February 2005
	source: LENA