By Kefiloe Kajane
Lesotho’s informal sector received a major shot in the arm when Lesotho Post Bank handed over a M100 000 grant to mitigate the impact of Covid-19 on small and medium enterprises on Wednesday this week.
The money, which was given to vendors’ association Khathang Tema Baitṧokoli (KTB), is expected to be distributed to small businesses with a view to helping them get back on their feet after they were dealt a major blow by movement restrictions that were aimed at curbing the spread of the pandemic.
The business owners will be trained on financial literacy by the bank before receiving the money.
Lesotho Post Bank’s chief sales and marketing officer ‘Mathabo Tṧehlo said the bank had noted the devastating effects that the lockdown had had on small business.
Tṧehlo said, since the bank works with small businesses most of the time, it saw it fit to give back to them to enable them to continue making a living.
“We hope the small business owners will see this a second chance to keep their businesses afloat.
“They should get their businesses back to their feet and emerge stronger. We do not know how the Covid-19 will affect us going forward and there is a possibility of even tough times lying ahead.
“We know that small businesses like this are usually forgotten, but we want them to grow,” she explained.
The chairman of KTB, Tṧolo Lebitsa, thanked the bank, and lamented that the lockdown had hit them hard, adding that the money will go a long way in helping many people who are breadwinners.
He said the money will target businesses that sell food items as these were the most affected.
“We now liken Lesotho Post Bank to a hand that feeds us, and we will encourage our members to bank with LPB. This is not the first time that the bank is helping us and we shall forever be grateful to it,” he said.
At the same occasion, the managing direct of Lesotho Post Bank Molefi Leqhaoe said many countries’ economies have been affected negatively by the Covid19 pandemic, and Lesotho is no different.
Leqhaoe said assisting the informal sector will surely benefit the country’s economy, as the sector contributes a lot to the economy.
“Basotho should develop a culture of saving, as it comes in handy in times like this. Basotho have little knowledge of the importance of saving, that is why they need help with financial literacy.
“Working together can get us very far. Like we have done in the past, we provide training on financial literacy to the recipients of the money. We did not choose them; they were identified by their representatives. We just provided the money,” he said.
