Confusion clouds youth ‘free’ business registration drive

RETHABILE MOHONO

MASERU – Despite a bold announcement that Basotho youth can now register businesses for free, confusion and frustration are mounting among aspiring entrepreneurs who say the process is far more complicated than expected.

Although the Ministry of Trade, Industry, and Business Development (MTIBD) officially launched the fee-waiver initiative on July 1, a key step to combat youth unemployment and promote entrepreneurship, several young people say they’ve encountered unexpected roadblocks, unclear communication, and contradictory requirements.

One young entrepreneur who attempted to register a business said it came as a shock to learn that the free registration only applies to sole traders and partnerships -not companies.

“I wanted to register my business as a company, but I was told only sole traders and partnerships are registered for free,” the youth explained.

“When the Prime Minister made the announcement, it was never made clear that companies would still need to pay.”

Another youth echoed similar frustrations, pointing to accessibility challenges.

“Some of us live far from registration offices and we’re required to travel long distances just to register an email address and get the registration form,” they said.

“That alone discourages many young people, especially those in rural areas.”

There are also complaints that the Ministry still charges M500 for certain types of registrations – something that has sparked public debate and confusion about the true scope of the fee exemptions.

Others say the requirement to use email to receive feedback makes the process unnecessarily complex.

Speaking to Public Eye, the Ministry’s Public Relations Officer, Liahelo Nkaota, acknowledged the concerns but clarified that the initiative is specifically for Small, Micro, and Medium Enterprises (SMMEs) and not companies.

“Yes, the registration is now open for every Mosotho who desires to start a business,” she said.

“However, only sole traders and partnerships qualify for the free registration. Companies still have to pay.”

She added that the exemptions do not apply to businesses that are considered potentially harmful to the environment or national security, such as petrol stations.

“These businesses still need to obtain traders’ licenses,” Nkaota said.

Despite the criticism, Nkaota pointed out that the process has been simplified compared to the past.

“Applicants can now bring only a copy of their ID, unlike before when they needed several documents, including lease agreements,” she explained.

On the issue of delays, Nkaota admitted that while registration forms can be collected in local districts, they must still be sent to Maseru for processing.

“We’ve extended our working days to Saturdays to try and keep up with the high volume,” she said.

“Before, we registered about 20 businesses a day; now, we’re doing over 100 per day in Maseru alone.”

She noted that one of the recurring problems is poor handwriting on forms, leading to incorrect email addresses and delays in feedback.

“Some applicants write illegibly, and as a result, they don’t receive confirmation emails or further instructions on time.”

The business registration reform was first announced during the National Youth Dialogue held at the Manthabiseng Convention Centre on June 18.

The Ministry’s formal directive, issued on June 30, declared that all Basotho citizens would be eligible to register SMMEs without paying registration and licensing fees. The policy is valid for three years, subject to review.

Crucially, the directive also scrapped the requirement for lease documents and occupancy certificates – barriers that have long hindered small entrepreneurs, especially in rural areas.

While the reform is a significant step toward economic inclusivity, many young entrepreneurs argue that without clearer communication and better access – especially outside Maseru – the policy may fall short of its intended impact.

“The government needs to ensure that no one is left behind, especially those in the rural areas,” said one youth. “This opportunity is too important to be missed because of poor coordination.”

The Ministry maintains that the changes are part of a broader mission to eliminate barriers to entrepreneurship and promote sustainable development, but as the rollout continues, clarity and accessibility remain top concerns for the Basotho youth.