Peace and stability have been singled out as the most important elements for economic growth.

The Minister of Finance and Development Planning, Dr Timothy Thahane said this during a meeting with the Executive Directors of the International Monetary Fund (IMF) who have been in the country for the past four days.

Dr Thahane said peace and stability are corner stones that contribute to increasing economic growth of the country, adding that when peace reigns, investors will come to invest thus creating more jobs.

He said peace and stability are the key issues, which investors look into when choosing a country to invest in, hence a need for the public to maintain peace and stability to develop and uplift the country's economy.

He noted that for the country to achieve sustainable economic growth, it has to build on the success, saying that if the public continue to destroy what the country has succeeded on, it would not be possible for such country to grow economically.

Dr Thahane further said the biggest resource that Lesotho has for economic growth is its people as it invests in them, however saying that the challenge of HIV/AIDS continues to destroy the most productive and trained people of the country hence a need for the country to start by ensuring that people survive the pandemic.

IMF Executive Director for Russia, Mr. Aleksei Mzhin commended Lesotho's authorities for their prudent macroeconomic management which has contributed to ensuring economic stability translated in robust growth, strong fiscal and external positions, single digit inflation and substantial reduction in debt level.

With regard to economic growth, he said Lesotho has been doing well in the last four to five years as its economic growth has been well managed, adding that with the healthy budget that the country has, positive dynamics could be sustained and Lesotho could reach a break through and become a success story in economic growth.

IMF delegation arrived in the country on Sunday with the aim objective to assess the country's economic progression and to learn about economic policy challenges that confront developing countries like Lesotho and its possible trade offs.

During their stay in Lesotho the delegation held talks with Resident International Partners, Heads of Financial Sector Institutions, Representatives of the private sector and civil society organisation, toured Mohale Dam and Textile industry, paid courtesy call on His Majesty King Letsie III and the Prime Minister.

The delegation will head to Mozambique, Zambia and Tanzania.

Source: LENA 20/02/2008