3 Lesotho Services and Supply
The following sections contain information on the logistics services in Lesotho.
Disclaimer: Registration does not imply any business relationship between the supplier and WFP/Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please Note: WFP/Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.
3.1 Lesotho Fuel
Fuel Overview
The fuel services, provision and supply in Lesotho are dominated by the three listed companies. Shell Oil Lesotho (Pty) Ltd, Puma Energy and Engen Petroleum Lesotho (Pty) Ltd. These major companies are owned by South African companies. The country has encouraged private investment in fuel industry and no serious shortage of fuel have been experienced. There are however several hundreds of small unlicenced vendors providing fuel in the remote districts and towns.
The Petroleum Fund was established in 1955 prompted by the need to have fuel security in the country. The mandate includes:
- The stabilization of petroleum product prices when necessary,
- The stabilization of prices charged by oil companies on short-term basis,
- The purchase of petroleum products in times of crisis,
- The provision of national storage facilities for petroleum products when the need arises,
- The improvement of the distribution of petroleum products throughout the country,
- The improvement of safety at storage facilities,
- The research and studies pertinent to the petroleum sector; and any other energy project on loan basis.
The Petroleum Fund finances petroleum-related projects, to address the objectives of its enabling legislation which address, among others, the purchase of petroleum products in times of need; and the improvement of the distribution of petroleum products throughout the country. The Fund is committed to embarking on petroleum investments that will, not only ensure that there is the security of supply of petroleum products in Lesotho, but that investment opportunities are created for Basotho within the petroleum sector, including overall economic stimulation and job creation in the country.
For more information on government and fuel provider contact details, please see the following links:
https://www.shell.com/about-us/contact-us/contact-lesotho.html
4.7 Fuel Providers Contact List.
Fuel Pricing
Fuel Prices per Litre as of: 09 April 21 |
|
---|---|
Petrol |
R13.75 - $0.94 |
Diesel |
M13.40 - $0.91 |
Paraffin |
M9.45 - $0.64 |
Jet A-1 |
N/A |
Seasonal Variations
Seasonal Variations |
|
---|---|
Are there national priorities in the availability of fuel? (i.e. are there restrictions or priorities for the provision of fuel such as to the military?) |
Yes |
Is there a rationing system? |
No |
Is fuel to lower income / vulnerable groups subsidized? |
Fuel in the country as a whole is subsidised. |
Can the local industry expand fuel supply to meet humanitarian needs? |
Yes |
Is it possible for a humanitarian organization to directly contract a reputable supplier / distributor to provide its fuel needs? |
Yes |
Fuel Transportation
The importation of petroleum products is carried out by private companies from South Africa through the Customs Union agreement. These companies are responsible for the importation of products in quantities greater than 200 litres according to the Fuel and Services Control Act of 1983 and Importation of Petroleum Products Regulations of 1989. Lesotho will continue to import these products as long as there are no discoveries of oil reserves. Transportation of these products from the Durban refineries into Lesotho is either by road or rail. There are currently three major depots in Maseru with a storage capacity of approximately six days of petroleum supply. There depots do not have storage facilities for LPGas[1]. There are no bottle neck experienced except when there are strikes or other external factors in south Africa affecting movement of trucks.
Standards, Quality and Testing
Lesotho receives all its fuel from South Africa and follows South African standards. Therefore from South African perspective Fuel standards are regulated by the Department of Energy (DOE) and its various instruments under the Amendment of Regulations regarding Petroleum Products Specifications and Standards Act all import, manufacture and blending for liquid fuels are regulated and are to meet the applicable code under the South African National Standards framework.[2]
Industry Control Measures |
|
---|---|
Do tanks have adequate protection against water mixing with the fuel? |
Yes |
Are there filters in the system which monitor where fuel is loaded into aircraft? |
N/A |
Is there adequate epoxy coating of tanks on trucks? |
Yes |
Is there a presence of suitable firefighting equipment? |
Yes |
Standards Authority |
|
---|---|
Is there a national or regional standards authority? |
Yes |
If yes, please identify the appropriate national and/or regional authority. |
National |
If yes, are the standards adequate/properly enforced? |
Yes |
Testing Laboratories |
|
---|---|
Are there national testing laboratories? |
Yes |
Lesotho does not have Testing facilities but depends on South Africa.
Fuel Quality Testing Laboratory |
|
---|---|
Company |
SGS SOUTH AFRICA (PTY) LTD |
Name |
Not available |
Address |
Huawei Office Park, Building No 1, Western Service Road, Woodmead, 2191, South Africa |
Telephone and Fax |
T : +27 11 800 1000 |
Contact |
Not available |
Standards Used |
ISO, EN and GOST |
Fuel Quality Testing Laboratory |
|
---|---|
Company |
Intertek South Africa - Bapsfontein (Minerals) |
Name |
Not available |
Address |
Portion 113, Farm Elandsfontein, District Bapsfontein, 412JR, 1510, Gauteng, South Africa |
Telephone and Fax |
T : +27 105009977 , F : +27 0 11 574 5707 |
Contact |
Not available |
Standards Used |
ISO, EN and GOST |
Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.
[1] http://www.lewa.org.ls/library/Policies/Energy_Policy_2003.pdf
[2] /display/public/DLCA/3.1+South+Africa+Fuel
3.2 Lesotho Transporters
There are over twenty transport companies operating within Lesotho. The last three years of financial hindrance and government interference in the sector through economic difficulties have forced a number of these operators to find work outside the country Most of listed Companies operate across the SADC region. Many of the larger companies have fared well through these hard times but the smaller ones have struggled with upkeep and maintenance. The countries road network has allowed a sound industry to develop and being the regional gateway through transit routes, transporters can cope with capacities and product types across the regional market.
For more information on transport company contact details, please see the following link: 4.8 Transporter Contact List.
Khangline Transport |
|||
---|---|---|---|
Regions Covered |
Local: Maseru, Mafeteng, Mohale’s hoek, Quthing, Qacha’s Nek, Thaba-Tseka, Mokhotlong, Butha-Buthe, Leribe, Berea Cross Border: Zambia, Zimbabwe, Mozambique, Namibia, Botswana. |
||
|
Number of Vehicles |
Capacity per Vehicle (MT) |
Comments / Condition of Vehicles |
Vehicle Type |
2 |
34 |
Good condition |
Vehicle Type |
16 |
28 |
Good condition |
Total Capacity |
18 |
516 MT |
|
Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.
3.3 Lesotho Manual Labor
Lesotho has a government-mandated minimum wage, and no worker in Lesotho can be paid less then this mandatory minimum rate of pay. Employers in Lesotho who fail to pay the Minimum Wage may be subject to punishment by Lesotho's government.
Labour Wages in Lesotho can be paid daily, weekly or on a monthly basis depending on the type of work contract which are usually as follows:
- Contract at piece rate: wage payment on daily basis;
- Contract for less than a month: wage payment on weekly basis;
- Contract for more than a month: wage payment on monthly basis; and
- Contract for completion of a task: wage payment on completion of the concerned task
Labour officers (Authorized by the Labour Code) are responsible for monitoring compliance of the minimum wage legislation. In the pursuance of their duties, they may inspect the workplace, ask questions from employees and request provision of information on working conditions. Casual workers often demand to be paid of the spot, such work is normally deferred to the stevedoring who handles the casual workers.
Labour Rate(s) Overview |
|
---|---|
|
Cost (as of November 2021) |
Daily General Worker (Unskilled casual labour) |
M 96.54 |
Daily General Worker (Semi-skilled labour) |
M 144.81 |
Skilled Worker |
M 210.00 |
Workmen-Compensation-Act-1977.pdf (labour.gov.ls)
3.4 Lesotho Telecommunications
The Telecommunication services in Lesotho is placed under Ministry of Telecommunication Science and Technology. The Telecommunication Act of 2000 gave birth to privatization of the then monopoly operator known as Lesotho Telecommunication Cooperation. As a result, The Lesotho Telecommunications Authority (LTA) was established. The mandate of the authority is to create and enforce rules and procedures to facilitate efficient operations of the telecommunication sector in the Country.
Lesotho Communications Authority (LCA) is a statutory body, established in June 2000, with the mandate of regulating the communications sector in Lesotho. This mandate entails: granting licences to operators; promoting fair competition; approving tariffs; managing the radio frequency spectrum; empowering and protecting consumers; type-approving terminal equipment and other related responsibilities.
For more information on telecoms contacts, please see the following link: 4.11 Additional Services Contact List.
Telephone Services |
|
---|---|
Is there an existing landline telephone network? |
Yes |
Does it allow international calls? |
Yes |
Mobile Phone Providers |
Econet Telcom/ Vodacom |
Approximate Percentage of National Coverage |
99% |
Telecommunications Regulations
Though the is a private entity, that regulates all the Telecommunication activities, note that it they use the Government gazette to build or regulate the telecoms systems[1]. For Licensing note that the below requirements: Conditions for ISPs, Internet Service Providers (Form), Application form for Network Services - Internet Service Providers, Application form for Network Infrastructure, Application requirements for Network Infrastructure Licence, Application requirements for Network Services Licence. There are no government restrictions on access to the Internet or credible reports that the government monitors e-mail or Internet chat rooms without judicial oversight. The Internet is not widely available and almost nonexistent in rural areas due to the lack of communications infrastructure and high cost of access. [2]
Regulations on Usage and Import |
||
---|---|---|
Regulations in Place? |
Regulating Authority |
|
Satellite |
Yes |
Yes |
HF Radio |
Yes |
Yes |
UHF/VHF/HF Radio: Handheld, Base and Mobile |
Yes |
Yes |
UHF/VHF Repeaters |
Yes |
Yes |
GPS |
Yes |
Yes |
VSAT |
Yes |
Yes |
Individual Network Operator Licenses Required |
||
Yes |
||
Frequency Licenses Required |
||
Yes |
Existing Humanitarian Telecoms Systems
With the increase of several types of transmitting information, note that there are several technologies that are being not used through the structures maybe in place, most of the NGOS are only moving towards fiber.
Existing UN Telecommunication Systems |
|||||
---|---|---|---|---|---|
UNDP |
WFP |
UNICEF |
WHO |
FAO |
|
VHF Frequencies |
No |
No |
No |
No |
No |
HF Frequencies |
No |
No |
No |
No |
No |
Locations of Repeaters |
No |
No |
No |
No |
No |
VSAT |
No |
Yes |
No |
No |
No |
Internet Service Providers (ISPs)
Econet Telecom Lesotho, ILESOTHO, LEO and Vodacom Lesotho Pty are companies which provide internet connectivity in Lesotho. This companies provide offering broadband, fiber broadband, dial up internet, narrowband, Wi-Fi, 2G, 3G, 4G mobile internet, Wi-MAX, DTH services using cable, DSL, wireless, mobile and dial-up in Lesotho, Maseru and other nearest regions. Econet Telecom Lesotho and Vodacom provide reliable connections.
Internet Service Providers |
|
---|---|
Are there ISPs available? |
Yes |
If yes, are they privately or government owned? |
Privately-owned |
Dial-up only? |
No |
Approximate Rates (local currency and USD - $) |
Please see table below |
Max Leasable ‘Dedicated’ Bandwidth |
10 mbps (can be more) |
Average rates for broadband connection
Provider |
Package |
Download Speed |
Upload Speed |
New Subscription / Bundle |
Econet |
Home (Unlimited) |
20Mbps |
10Mbps |
M899.00 |
---|---|---|---|---|
Econet |
Business (Unlimited) |
40Mbps |
20Mbps |
M1599.00 |
Vodacom |
Bronze Uncapped |
4Mbps |
4Mbps |
M599.00 |
Vodacom |
Gold Uncapped |
10Mbps |
10Mbps |
M1,299.00 |
Vodacom |
Diamond Uncapped |
20Mbps |
20Mbps |
M2,699.00 |
Mobile Network Operators (MNOs)
Lesotho has two MNO with the good coverage in all the districts, in the cases where there is no coverage, we observed that people are able to find sports where they are able to access the network.
For information on MNOs please visit the GSM Association website.
Company |
Number of Agent Outlets by Area |
Network Strength by Area |
Contracted for Humanitarian or Government Cash Transfer Programmes? |
Services Offered |
---|---|---|---|---|
ECONET Telecom |
10 |
3G |
Yes |
Merchant Payment, Bulk Disbursement, Receive & Make Payment |
Vodacom |
10 |
3G |
Yes |
Merchant Payment, Bulk Disbursement, Receive & Make Payment |
Spectrum Guidelines
Radio Spectrum Management guidelines form a basis for radio frequency licensing policies, requirements and procedures in the management of the national radio spectrum resource. This among others includes radio spectrum frequency monitoring, allocation and planning.
- Radio Spectrum Management Guidelines and Procedures
- Radio Frequency Spectrum Policy
- 70_80 GHz Band Guidelines
- ISM Band Guidelines
Band plans for frequency allocations:
Categories of Licenses
- Land Mobile Services
- Satellite Services
- Radiodetermination/Aeronautical Services
- Fixed Links
- Access Spectrum
- Fixed Links for Broadband Access
- Telemetry/Telecommand
- Broadcasting Services
- Amateur Radio
- Numbering Resources
- Private Network
[1] Lesotho Government Gazette, Friday 23rd March 2018 No. 22
[2] https://en.wikipedia.org/wiki/Telecommunications_in_Lesotho
3.5 Lesotho Food and Additional Suppliers
Generic country information can be located from sources which are regularly maintained and reflect current facts and figures. For a general overview of country data related to the service and supply sectors, please consult the following sources:
The Observatory of Economic Complexity – MIT (OEC): (http://atlas.media.mit.edu/en/)
Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.
3.5.1 Lesotho Food Suppliers
Overview
Roughly 80% of Lesotho’s population depends on the agricultural sector for their livelihoods. In recent years, the government embarked on a block farming program to increase production through subsidies and central planning. Despite flagging agricultural production, the government plans to continue these subsidy programs to combat hunger and poverty. Although the government has not been actively seeking investors in the agriculture sector, there are opportunities in aquaculture, horticulture, and poultry farming. In recent years, Lesotho’s economic performance has been negatively affected by sluggish global economic growth amid a major downturn in both emerging markets and advanced economies. Furthermore, sustained political instability in the country, coupled with slow economic growth in the South African economy, also contributed to slow economic performance. Real GDP growth rate is estimated to have averaged 1.6% between 2015–2019 and it is projected to average 0.6% between 2019–2021, largely attributed to the expected negative impact of COVID-19 (coronavirus)[1].
Lesotho’s main food crops produced include maize, sorghum (for food and beer), and wheat. Maize and sorghum are grown throughout the country in summer (October to April), with the most productive areas in the Lowlands and Foothills. Winter wheat is common in the Mountains (May to September). Currently, over 70 percent of the national cereal requirements are imported, mainly from South Africa, and most of the population (the poor) purchases more than half of their food in a typical year. As a result, the national strategy for food security emphasizes in ensuring adequate food imports to cover the deficit. The country has introduced measures to increase household incomes to guarantee their access to food, and improvement of agricultural production Several rivers in the country have potential to support irrigation in the Country, however less land is under irrigation by small scale farmers. The option of utilising the water for farming is still not fully utilised.
Additional information can be located from sources which are regularly maintained and reflect current facts and figures. For more specific and detailed overviews of food availability and market conditions, please consult the following sources:
WFP Vulnerability and Analysis Mapping (VAM): https://dataviz.vam.wfp.org/Hunger-Analytics-Hub
USAID Famine Early Warning Systems Network (FEWS NET): https://fews.net/southern-africa/lesotho
For more information on food supplier contact details, please see the following link: 4.10 Supplier Contact List.
Retail Sector
Lesotho has huge predominance of micro-enterprises in the SME sector. The vast majority of are micro-enterprises. Seventy percent of businesses are micro-enterprises (with two employees or less). One third of micro-enterprises businesses have no employees at all other than the owner. Twenty three percent of enterprises in the small businesses have 3 to 9 employees. Seven percent were of medium size, with between ten and 50 employees. Eighty percent of small businesses employ no more than three people – including the business owner. The turnover as well as employee numbers. Eighty percent of businesses have annual turnover below M200 000. In fact, almost a quarter of respondents reported annual turnover of under M10 000 per annum – which is very low indeed. Less than four percent reported turnover above M1 million, and less than one percent reported turnover above M5 million. The very large majority of small businesses are survivalists and may have limited potential for growth and expansion[2]. Vast majority of the retailers in Lesotho purchase their stocks from Chinese supermarkets. Since that retailers are competing with Chinese retailers most of the retailers go bankrupt due to unavailability of customers.
Types of Retailers Available |
|
---|---|
Type of Retailer |
Rank (1-5) |
Supermarket – concentrates mainly in supplying a range of food, beverage, cleaning and sanitation products; have significant purchasing power; are often part of national/regional/global chains. |
3 |
Convenience Store/Mini Market – medium sized shop; offers a more limited range of products than supermarkets; usually has good/stable purchasing power; may be part of chain or cooperative. |
3 |
Permanent shop with strong supply capacity – individually/family owned store; usually offers fewer commodities and a limited selection of brands; good storage and reliable supply options. |
5 |
Permanent shop with limited supply capacity – individually/family owned store; offers fewer commodities and a limited selection of brands; limited storage and unstable supply options. |
5 |
Mobile Shop/Market Stand – individually/family owned store; usually offers fewer commodities and a limited selection of brands; may be found at outdoor markets, camps or unstable environments. |
2 |
Wholesale – Browns Cash & Carry
Supplier Overview |
|
---|---|
Company Name |
Wholesale – MASERU CASH AND CARRY (INC IN LESOTHO) |
Address |
Raboshabane Rd Opposite Ministry Of Works, Industrial Area, P.O.Box 4018, Maseru, Lesotho |
Does the supplier have its own production / manufacturing capacity? |
NO |
Does the supplier have its own retail capacity? |
No |
Does the supplier have its own transport capacity? |
No |
Does the supplier have its own storage facilities? |
Yes |
Approximate Turnover in MT |
Not available |
Payment Methods Accepted |
Debit/Cash/Credit |
Other Comments or Key Information |
|
Other Locations |
|
---|---|
Region(s) |
Service Location(s) |
Maseru |
Industrial Area |
Wholesaler – Ntjamoatle Trading PTY LTD
Ntjamoatle has been active since 1999 with their main area of business is in the Mokhotlong District while they receive their stock from the Lesotho flour Mills in Maseru and from imports from manufacturers in South Africa. They are members of the Mokhotlong Traders Association.
Supplier Overview |
|
---|---|
Company Name |
Ntja-mokoatle Trading PTY LTD |
Address |
Mohotlong, Lesotho |
Does the supplier have its own production / manufacturing capacity? |
NO |
Does the supplier have its own retail capacity? |
Yes |
Does the supplier have its own transport capacity? |
Yes |
Does the supplier have its own storage facilities? |
Yes about 200m2 |
Approximate Turnover in MT |
Not available |
Payment Methods Accepted |
Debit/Cash/Credit |
Other Comments or Key Information |
They are one of two biggest suppliers of Maize meal and Bread flour in the district. |
Primary Goods / Commodities Available |
||
---|---|---|
Commodities by Type** (SITC Rev 4 Division Code - Title) |
Comments |
|
00 - Live animals (other than fish, crustaceans, molluscs, etc.) |
i.e. sheep and goats, swine, poultry… |
Locally produced and imported |
01 - Meat and meat preparations |
i.e meat of bovine animals, meat of sheep, dried or smoked meat of swine, sausages… |
Locally produced and imported |
02 - Dairy products and birds’ eggs |
i.e. milk, yogurt, butter, cheese, eggs… |
Locally produced and imported |
03 - Fish (not marine mammals), crustaceans, molluscs… |
i.e. fish (chilled or frozen), fish (salted or in brine), fish liver and roes… |
Locally produced(trout) and imported |
04 - Cereals and cereal preparations |
i.e. wheat, rice, flour of maize, pasta... |
Locally produced and imported |
05 - Vegetables and fruit |
i.e. vegetables, fruit and nuts, jams/jellies, fruit juices… |
Locally produced and imported |
06 - Sugars, sugar preparations and honey |
i.e. sugars (beet or cane) raw, natural honey, fruit/nuts preserved by sugar … |
Packed and imported |
07 - Coffee, tea, cocoa, spices and manufactures thereof |
i.e. coffee, cocoa, chocolate, tea, mate, pepper… |
imports |
09 - Miscellaneous edible products and preparations |
i.e. ready-to-eat foods, margarine, sauces, soups and broths, yeasts… |
imports |
41 - Animal oils and fats |
i.e. lard, fats and oils… |
imports |
42/43 - Fixed vegetable fats and oils, crude, refined or fractionated |
i.e. soya bean oil, olive oil, maize oil, vegetable oil… |
imports |
**For non-FOOD products please see section 3.5.2 Additional Suppliers, and for FUEL/PETROLEUM products please see section 3.1 Fuel.
Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service providers.
[1] https://www.worldbank.org/en/country/lesotho/overview
[2] FINAL_Lesotho_State_of_Small_Enterprise_Survey_23_10_08
3.5.2 Lesotho Additional Suppliers
Overview
Lesotho does not have manufacturing companies for operational support equipment, they are normally imported from south Africa, they can be bought in pieces and rebuild in the country, these include tents, water pumps, pipes, water tanks, computer / IT equipment, office furniture, portable water.
For more information on suppliers’ contact
details, please see the following link: 4.10 Supplier
Contact List.
Wholesale – Cashbuild Hardware
Cashbuild is a retailer of building materials and associated products, selling directly to cash-paying customers through its 319 stores in South Africa, Namibia, Lesotho, Botswana, Swaziland, Malawi and Zambia. Cashbuild employs 6,238 people in the abovementioned countries.
Supplier Overview |
|
---|---|
Company Name |
Cashbuild Hardware |
Address |
Motsoene Rd, Foso |
Does the supplier have its own production / manufacturing capacity? |
No |
Does the supplier have its own retail capacity? |
No |
Does the supplier have its own transport capacity? |
No |
Does the supplier have its own storage facilities? |
No |
Approximate turnover in USD - $ |
$780 Million June 2020 – June 2021 |
Payment Methods Accepted |
Cash |
Other Comments or Key Information |
N/A |
Other Locations |
|
---|---|
Region(s) |
Service Location(s) |
Maseru |
Industrial |
Primary Goods / Commodities Available |
||
---|---|---|
Commodities by Type** (SITC Rev 4 Division Code - Title) |
Comments |
|
24/27 - Crude materials, inedible, except fuel |
i.e. fuel wood, crude fertilizers, sand/stone/gravel |
|
51 to 59 - Chemical and related products |
i.e. chlorine, pharmaceuticals, soaps, plastic tubes/pipes, chemical fertilizers |
|
61 to 69 - Manufactured goods classified chiefly by material |
i.e. rubber tyres, wood pallets, textiles, cement, iron/steel pipe fittings, copper wire, metal tanks |
Imported |
71 to 79 - Machinery and transport equipment |
i.e. engine/machine parts, generators, sewing machines, pumps, telecoms equipment, vehicles |
|
81 to 89 - Miscellaneous manufactured articles |
i.e. prefabricated buildings, lighting fixtures, furniture, clothing, medical/surgical instruments |
|
91/93/96/97 - Commodities not classified elsewhere |
|
|
**For FOOD products please see section 3.5.1 Food Suppliers, and for FUEL/PETROLEUM products please see section 3.1 Fuel.
Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.
Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.