Molapo clarifies ban on second-hand car imports

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Africa-Press – Lesotho. The Ministry of Trade and Industry has temporarily suspended the issuance of import permits for used motor vehicles and trader’s licenses for motor dealers.

Speaking at a press conference last week where he was addressing the leaked internal memo on the suspension of permits for used motor vehicles, the Minister of Trade and Industry Dr Thabiso

Molapo said the imposed suspension follows a preliminary investigation they conducted which revealed fraud in the issuance of trader’s licenses. He said

they discovered that foreigners use one trading and importing licence. “It came to our attention also that one importing permit is used by 10 or more foreigners,” he said, also adding that the ministry has launched a

comprehensive investigation. The leaked internal memo was titled ‘Moratorium on issuance of motor dealer licences and issuance of import permit for used motor vehicles’.

the Minister has decided to impose a moratorium on the issuance of import permits for used motor vehicles coming from outside the

Southern African Customs Union (SACU) countries,” the statement read in pertinent part. It continued ‘’Furthermore the minister has also decided to impose a moratorium on the issuance of new

trader’s licences for motor dealers. The moratorium is effective from Tuesday, 15 September, 2020 until further notice’ Molapo said he cannot share the

progress of their investigations as yet, but promised as soon as they have compiled everything they will share the information with the media. He further

stated that the ban does not include individuals importing used cars. The Ministry of Trade and Industry’s Principal Secretary (PS) Maile Masoebe said, what he realises is that investors

from Asian countries send unqualified motor vehicle dealers who can merely speak English. He said they later struggle acquiring a working permit in order

for them to get a traders and importing licence. He said the other depressing issue is that the very same foreigners do not bank in Lesotho “rather they take their money to their home countries,” he added.

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