Over the past two decades, Lesotho’s approach to corporate governance evolved from fragmented efforts to a more coordinated framework with the adoption of the Mohlomi Corporate Governance Code. Initially, reforms were reactive, emerging in response to economic mismanagement and financial strain caused by failing state-owned enterprises (SOEs). The privatisation drive of the 1990s, while intended to ease government financial burdens, failed to identify poor governance structures as the root cause of SOE inefficiency. It wasn’t until the African Peer Review Mechanism’s intervention in 2005 that corporate governance began receiving targeted attention. Despite subscribing to international standards, Lesotho lacked institutional capacity and political will to implement reforms effectively. The recommendations from the APRM, although clear, were largely ignored until external development partners like the World Bank and African Development Bank intervened. The 2015 financial scandals in key parastatals reignited the urgency for reform, eventually leading to the development and launch of the Mohlomi Code in 2021.
The journey to institutionalising corporate governance in Lesotho highlighted systemic challenges. There was a notable disconnect between reform initiatives, with no coherent strategy linking privatisation, international donor recommendations, and national policy efforts. Critical capacity gaps within government structures further delayed progress, while reliance on donor funding exposed the fragility of nationally led reform. The Mohlomi Code, named after a historic Basotho leader, represents a cultural and strategic milestone, seeking not only to align with global best practices but to root governance principles in indigenous leadership values.
Despite the code’s implementation, the broader corporate environment in Lesotho remains constrained by limited resources, weak enforcement mechanisms, and underdeveloped institutional capacity. SOEs, often burdened by political interference and a lack of skilled leadership, continue to struggle with accountability, transparency, and efficiency. The future of corporate governance in Lesotho will depend heavily on sustained commitment from government, improved coordination among regulatory institutions, and a deliberate investment in training and professional development. Without addressing these structural weaknesses, the principles outlined in the Mohlomi Code risk remaining aspirational rather than transformative.