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IMF Concludes Consultation with the Kingdom of Lesotho

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MASERU —The Executive Board of the International Monetary Fund (IMF) yesterday concluded the Article IV consultation with the Kingdom of Lesotho.

Since 2010, the economy has been performing well with growth of real Gross Domestic Product (GDP) averaging over 5 percent a year and inflation held to single-digit levels. International reserves have recovered to close to 5 months of import coverage after dipping to 3½ months of imports in 2012 in the wake of the balance of payments and fiscal crisis caused by the sharp drop in revenues from the Southern African Customs Union (SACU) in fiscal years 2010/11 and 2011/12. The recovery from the crisis was achieved with the help of a sustained fiscal adjustment effort supported by the IMF with a three-year arrangement under the Extended Credit Facility (ECF), which was successfully concluded in September 2013.

The economic outlook for Lesotho is positive with strong economic growth and low inflation. Economic activity is expected to be supported by large public investment projects, including the second phase of the Lesotho Highland Water Project. The authorities are also taking steps to strengthen the role of the private sector. However, there are risks, most notably from the high volatility of SACU revenues.

Despite the recent strong growth, unemployment remains high and poverty is widespread, while some social indicators on primary and secondary education and HIV/AIDS highlight the future challenges.

In the near term, the authorities are faced with the issue of domestic tax performance. In 2013/14, the domestic tax revenue experienced a shortfall of 4 percent of GDP and resulted in the overall fiscal deficit of more than 1 percent of GDP, compared with a strong surplus the previous year. On the spending side, Lesotho is faced with an extraordinarily high government wage bill—the highest in sub-Saharan Africa (relative to GDP)—which to some extent crowds out public investment projects needed to promote inclusive growth under the National Strategic Development Plan (NSDP).

Executive Directors commended Lesotho’s robust economic growth with moderate inflation, and welcomed the recovery of international reserves on the back of a period of fiscal adjustment. The outlook is positive, but the economy faces risks from the volatility of revenues from the Southern African Customs Union, while unemployment remains high and poverty widespread. A strengthening of fiscal policies and stepped up reform implementation will therefore be needed to enhance resilience and promote private sector-led inclusive growth.

Directors saw a need for a tighter fiscal stance consistent with maintaining an adequate level of international reserves and creating space for priority social and capital spending. They encouraged the authorities to improve revenue administration and tax policy, including in mining, and to contain recurrent expenditure, notably the wage bill. In this regard, Directors urged completion of the ongoing pilot payroll audits and extension of the exercise to the entire civil service while strengthening control over hirings. They also encouraged the authorities to step up public financial management reforms.

Directors noted that substantial financing will be needed for the second phase of the Lesotho Highlands Water Project, and encouraged the authorities to pursue a prudent debt policy to ensure sustainability. They recommended prompt submission of the new public debt management bill to parliament.

Directors observed that the loti’s peg to the South African rand has successfully anchored Lesotho’s macroeconomic stability. They encouraged the authorities to consider moving toward a transparent and predictable rules-based fiscal framework, which, in addition to maintaining a sufficient stock of international reserves to secure the peg, would further reduce risks.

Directors welcomed the soundness of the banking sector. They emphasized the need for financial sector deepening to enable private sector-led growth, and recommended further strengthening the regulatory and supervisory framework, including effective cross-border supervision with South Africa, and establishing a functional credit reference bureau. Implementation of the Financial Sector Development Strategy will be important in this regard.

Directors encouraged the authorities to step up implementation of the National Strategic Development Plan to improve the business climate, raise competitiveness, and promote broad-based growth and poverty reduction.

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Painkillers Damaged My Kidney, Says Ufoma McDermott[VIDEO]

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Nollywood actress, Ufoma McDermott has shared how her long-term painkiller use led to kidney disease.

In a recent interview with media personality Chude Jideonwo, she opened up about her 12-year struggle with the illness and urged the public to prioritize their health.

While revealing that her condition was a side effect of long-term painkiller abuse, McDermott said; “I really wish everyone would understand the importance of health. My brother was diagnosed late on stage 4 of kidney disease and he goes straight into dialysis and has complications.

“I was diagnosed earlier, so I have lived on medication for almost 12 years now. When my brother I ran to my cardiologist. My parents were scared, thinking if this is genetic? We had to trace the kidney disease and we learned it was from drug abuse.

“I grew up with migraines, headaches and eyeaches, and I never wore my glasses because they made me look like a geek. I’d take painkillers for my migraine. I took strong painkillers and not the ordinary painkillers because I wanted the pain to go away.”

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Music Icon Quincy Jones Passes Away At 91

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Quincy Jones, the legendary music producer, composer, and cultural icon whose career spanned over seven decades, has passed away at the age of 91.

Jones died peacefully on Sunday night at his Bel Air home, surrounded by family, according to his publicist, Arnold Robinson.

“Tonight, with full but broken hearts, we must share the news of our father and brother Quincy Jones’ passing,” his family said in a statement. “And although this is an incredible loss for our family, we celebrate the great life that he lived and know there will never be another like him.”

Renowned for his unmatched versatility, Jones collaborated with some of the greatest musical talents of the 20th and 21st centuries, including Michael Jackson, Frank Sinatra, Aretha Franklin, and Will Smith. He played an integral role in producing Jackson’s groundbreaking albums Off the Wall, Thriller, and Bad, which catapulted the pop star to global superstardom and earned Jones worldwide acclaim.

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Born in Chicago in 1933, Jones’ journey into music began early. His childhood introduction came from a neighbor’s piano playing and his mother’s singing. After moving to Washington state following his parents’ divorce, he honed his skills in his high school band and began playing with a young Ray Charles in Seattle’s vibrant club scene.

Jones’ career took off in New York, where he played trumpet in Elvis Presley’s early TV performances and worked with bebop legends like Charlie Parker and Miles Davis. By 1958, he was working with Frank Sinatra, arranging for the singer’s band at the request of Princess Grace Kelly. Their partnership flourished, spanning several projects including Sinatra’s final album LA Is My Lady in 1984.

Throughout the 1960s and 70s, Jones’ talents extended into film and television scores, composing music for films such as The Italian Job, In the Heat of the Night, and the acclaimed The Color Purple, for which he earned three Oscar nominations. He also scored hit TV shows including The Bill Cosby Show and Roots.

In 1985, Jones produced and co-conducted the charity anthem “We Are the World” alongside Michael Jackson and Lionel Richie, raising millions for Ethiopian famine relief. Despite personal and professional challenges—including surviving a near-fatal brain aneurysm in 1974—Jones’s career continued to thrive.

Jones’ influence wasn’t limited to music. In 1990, he founded Quincy Jones Entertainment, the company behind the popular sitcom The Fresh Prince of Bel-Air, which launched the career of Will Smith. His media ventures also included the creation of Qwest TV, an on-demand music streaming service, and the magazine Vibe, which celebrated Black music and culture.

Over his career, Jones earned 80 Grammy nominations, winning 28—making him one of the most decorated artists in the award’s history. Tributes poured in following news of his death. Actor Michael Caine, who shared Jones’ birthdate, called him “a wonderful and unique human being.” Music artists such as LL Cool J expressed gratitude, saying, “You were a father and example at a time when I truly needed one. Music would not be music without you.”

Jones is survived by his seven children, leaving behind an indelible legacy that will resonate through generations to come. His life’s work transformed music, television, and culture, proving that there truly was no limit to what Quincy Jones could accomplish.

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Prayers Won’t Build Roads, Fund Children’s Education – Jesse Jagz To Nigerians

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Singer and rapper Jesse Jagz has called on Nigerians to rethink their approach to religion.

Jagz suggested that African traditional religious gods have become ineffective, attributing this to the excessive alcohol given to them during rituals, which, according to him, has made them obese, diabetic, and unable to aid their worshipers.

Speaking on the ‘Big Talk’ podcast, the rapper also criticized followers of foreign religions for relying solely on prayer and expecting miracles without putting in the necessary effort. He stressed that prayers alone cannot provide essential social services or infrastructure.

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“When you go to a shrine and you see the priest pouring gin on the gods, Google how much a bottle of gin was in slavery. 40 slaves.

“Our gods are drunk on alcohol and meat. They are obese and diabetic.

“They can’t help us do anything. Prayers do not build roads or buy books for children. We have forgotten humanity,” he said.

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