Chapter four: Economic governance and management processes involved in vehicle registration in one place, thereby shortening the time involved for these procedures. The main idea behind the shops is to make Lesotho more investor-friendly. 102 354. The Private Sector Development Division of the MoFDP has been mandated to play a leading role in coordinating efforts to reform the investment climate and make it more investor-friendly. In this regard, it has designed a range of measures such as offering investors fiscal and other incentives. The measures also include providing capital, training and market information for developing the informal sector. Some institutions have also been created to make it easier for businesses to be established and to operate, while government infrastructural development activities are also aimed at creating an enabling environment for private sector operations. 355. The Millennium Challenge Account (MCA) is yet another initiative for promoting private sector development. The MCA is an innovative foreign assistance programme designed to reduce poverty through sustainable economic growth. The Millennium Challenge Corporation (MCC) is an independent US government corporation established to administer the MCA. Lesotho has been judged eligible for funding from the MCA and was therefore given an opportunity to submit a proposal for five-year strategic funding to cover some key sectors of the economy. The total cost for Lesotho’s proposal amounts to US$326.55 million. In April 2009, the MCA was in the fifth month of its five-year life span. 356. The objectives of the MCA are being achieved through three programmes intended to unlock the productive capacity of the economy. The first two programmes comprise water and health projects, while the third focuses on the private sector. The projects for private sector development include: the National ID Card and Credit Bureau; establishing a Payments and Settlements System; and Land Administration Reform and Civil Legal Reform. The national ID card will make it easier for creditors to track down borrowers and, therefore, improve access to credit. The payment system will ensure timely clearance of cheques and reduce fraudulent transactions. The land reform component is aimed at making it easier for industrialists to apply for and obtain land. Finally, under legal reform, a specialised commercial court will be established to settle commercial disputes timeously. These initiatives will make it increasingly easier for private sector operators to operate more effectively in Lesotho. 357. Bold measures have also been taken to make Lesotho more investor-friendly. These are shown in tax cuts for exporters. Government tax incentives include: reducing corporate tax on profits earned by manufacturers exporting outside SACU from 15 per cent to 0 per cent; reducing preferential corporate tax on profits earned on exports within SACU from 15 per cent to 10 per cent; and a normal corporate tax rate of 25 per cent. 358. Vision 2020 and the PRS contain proposals for Lesotho’s long-term development and measures for private sector development. Among the measures is the development of small, medium and microenterprises (SMMEs). The LNDC has adopted a working paper on an ‘Excellence Model’ as a tool through which the LNDC will support the evaluation of local enterprises and entrepreneurship. 359. The Lesotho Enterprise Assistance Programme (LEAP) was established to strengthen the human and institutional capacity of SMMEs and professional associations. This will be done by providing