THE Lesotho National Development Corporation (LNDC) has embarked on a restructuring exercise to complement its 2018-2023 strategic plan that was launched in Maseru this week.
According to LNDC chief executive officer (CEO) Mohato Seleke the realignment will enable the organisation to dispatch its five-year plan smoothly.
LNDC is a government entity mandated to initiate, promote and facilitate development of manufacturing, processing industries, mining and commerce in a manner calculated to raise the level of income and unemployment.
The restructuring will entail that the organisation will now have four strategic business units like development finance, property development, investment and trade promotion institution and corporate services. All the new departments will report to the CEO.
The corporation previously had six line managers and another two additional managers that reported to the CEO.
Mr Seleke said it was now apparent that the old structure could no longer effectively assist the organisation to carry out its mandate.
He said the new structure emphasises Manufacturing and Agro-processing. “Unlike in the past we will approach these priority sectors by initiating and piloting investments through taking an active position in providing risk capital,” Mr Seleke said.
“Investment and Trade Promotion shall remain key pillars of our FDI and domestic investment attraction, with emphasis is on building an export-led economy.
“We intend to initiate, promote and facilitate the development of vertically integrated industrial players or national champions capable of competing at par with their regional and global peers in strategic industries, particularly within the high tech agro-processing space.
“For the first time, building industries and diversifying our economy will mean cross border acquisitions of strategic assets, raw materials, distribution channels and technology by these national champions.”
He said the new business units will have the necessary scale and scope in their operations. He said they will also have the right technologies, products and process certifications in their industry.
“They will have diversity of top talent to lead them. The companies will also invest in powerful brands, deliver on their brand promise and they will go global right away,” Mr Seleke said.
He said the realignment is meant to enhance the efficiency of their operations.
“We hope when we have fully implemented the reconfiguration the LNDC will be an agile and responsive organisation. The corporation therefore announces its new organisational structure that has only four business units as compared to eight divisions in the past.”
Mr Seleke said the realignment was timely given that the LNDC is still celebrating its 50th anniversary which was in 2017.
“As we enter the second half of the century, the LNDC board found it imperative to review and assess whether the corporation’s structure is robust and effective enough to enable it to deliver its mandate. It also makes it competitive in the global environment of investment and trade promotion and development financing.”
Speaking at the launch, LNDC board chairperson Themba Sopeng said the Strategic Plan took into account the lessons learnt over the 50 years of operation and emerging opportunities as a result of latest developments in talent, technology and innovation.
“LNDC has previously focused on the facilitation and promotion role and little effort was put on initiation. The corporation will now focus on initiating strategic investments in areas where potential for job and wealth creation is remarkably high but due to experiences in market failures, such benefits have not been optimised.
“It is our expectation that the roll out of these strategic investments will facilitate capital gains for the ordinary Basotho citizens as well as exploitation of opportunities that still lie unexploited. The necessary resourcing financially and technically will be facilitated as well as skills capacity building efforts to ensure that the appropriate platform is in place,” Mr Sopeng said.