The Central Bank of Lesotho (CBL) has made a concerted effort to combat financial illiteracy among Basotho, with the introduction of the Personal Finance Management programme which is set to be introduced at the National University of Lesotho (NUL).
This was revealed by Corporate Communication Chief of CBL, Ephraim Moremoholo, at a stakeholder engagement workshop on Personal Finance Management on Tuesday this week.
Moremoholo said the approach to the programme is strategic because it allows students to learn valuable financial skills which they can then share with their families, thus extending the programme’s impact beyond the classroom.
He indicated that beyond school settings, CBL will implement the programme through initiatives like the Money Month campaign. This broader outreach aims to reach adults and community members who may not be directly involved in formal education.
“The programme involves collaboration with institutions like the Lesotho Highlands Development Authority.
“Participants in the programme will receive a certificate upon completion, indicating a structured curriculum lasting between six to eight months,” Moremoholo noted.
The dean of faculty of social science, Professor Peter Khaola said in this programme, NUL’s rational is based on sustainable development goals and the national strategic development plans, particularly the NSDP II.
Khaola said the financial sector is competent to offer formal and informal education to Basotho on financial literacy.
He pointed out that for the economy to be efficient, actions should not militate against the concept of division of labour.
“With this problem, we offer a platform where we all participate in educating Basotho to become a more financial literate society.
“We may still engage those passionate about education, as part-time lecturers, guest lecturers, and adjunct lectures in this journey.
“We have also realised that even educated people, some of whom are financially literate, still continue to make the same mistakes committed by financially illiterate people.
“We are suffocating in that we are not saving and investing enough nor planning for retirement, yet we say we are financially literate,” Khaola said.
Khaola added that their strategic intent as NUL particularly the faculty of smart services is to produce and deliver on programmes that are visible, fit for purpose and address the contemporary needs of Basotho.
“We plan to produce programmes that are theoretically sound and rigorous, but even more importantly, programmes that are professionally and practically useful.
“Our programmes should be demand driven and no longer supply-driven. We no longer do research for the sake of it, but to engage action research and solve the needs of Basotho,” he said.
On his part, the first governor of the CBL, Lehlomela Mohapi, said they had found out that when they borrow, Basotho’s primary driver of where they borrow and how they borrow is ease of access.
Mohapi said the bank had been receiving 10 to 100 of letters every day of people complaining.
The bank learnt that they are not contractual disputes but the majority of these complaints are from people saying that they had a certain amount of loan which seem not to decrease. Mohapi noted that money is demanded for three things; transaction motive, precautionary motive, and speculative move. These motives apply to individuals, businesses, and countries as well.
