Basotho urged to explore more investment avenues

RETHABILE MOHONO

MASERU – With the cost of living and food prices rising at an alarming rate, squeezing consumers’ budgets more and more on a daily basis and personal savings while also venturing into small investments could help in the short to medium term, according to some market watchers. This means people need to be careful as to where they invest and be aware of risks that may occur, lest they fall victims of preying scammers or even ventures that are not performing at all.

According to experts, it is even more vital for investors to continue to put their long-term trust into stable savings or in the stock market, because over time investing in equities is a viable way to outrun the current setbacks. Local economic commentator, Letsatsi Sephepha, said with the recession hitting hard on the entire globe and countries experiencing higher inflation due to declining market balances, there are still sectors that people in the country can still invest in.

He said sectors such as agriculture and property are some of the major areas which present attractive opportunities during this time. “Basotho were not really into selling and buying of property such as houses. However, during this crisis era, it seems to be only right for them to invest in this sector,” he said, adding houses are basic needs that people are willing to invest in all the time. Investing in property leases or rentals earns income – the amount of which could very well exceed overheads and payables, depending on the property’s location, he added.

“If the property is in a desirable or prime location, one could benefit from increasing rent prices,” he said. Apart from that, he said investing in agriculture is another way of bringing something back. “Basotho need to learn to have insurance for agriculture so that they do not lose if anything happens to their produce,” he said, explaining that there is lack of food in the country therefore if more people invest in agricultural production, food would be available to sustain the nation.

Sephepha said there are many other investment opportunities that Basotho should explore when the tides of economic challenges become too hostile, especially for small economies like that of Lesotho. He also advised that cash can be kept in high-yield savings accounts or in the money market for steady and reliable returns.