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Lesotho

Taxman, banks unite in historic deal

The Revenue Services Lesotho (RSL) and the Bankers Association of Lesotho (BAL) have signed a Memorandum of Cooperation (MoC) aimed at strengthening ties between the tax authority and the banking sector.

The MoC was signed by RSL Commissioner General Mathabo Mokoko and BAL Chairperson Nkau Matete, who is also the Managing Director of Nedbank Lesotho.

The agreement is designed to enhance institutional collaboration, tackle regulatory and operational challenges, and drive innovation in digital banking, cybersecurity, and economic resilience.

Other senior banking leaders present at the ceremony included Lesotho Post Bank Managing Director Mokhachane Mopeli, First National Bank Lesotho CEO Delekazi Mokebe, and Standard Lesotho Bank CEO Samuel Seboka. Together, the four commercial banks form BAL’s membership, which plays a critical role in the country’s financial system.

Commissioner General Mokoko hailed the partnership as a significant milestone, emphasising that neither the RSL nor the banking industry can achieve their mandates in isolation.

“The challenges we face today, whether economic, regulatory, technological, or security-related, cut across institutions. They demand coordinated responses and a shared vision,” she said.

Mokoko outlined RSL’s mandate of collecting revenue fairly, transparently, and efficiently, while banks focus on mobilising savings, extending credit, and providing financial services that drive investment and growth. She said these mandates intersect at multiple points, creating opportunities for stronger collaboration.

“This memorandum formally acknowledges that intersection and commits both institutions to nurturing it. Through structured engagement, we will be better positioned to address tax compliance, transparency, financial formalisation, digital transformation, and the safeguarding of our financial system against crime and abuse,” Mokoko noted.

The cooperation is also expected to play a key role in supporting small and medium enterprises (SMEs), which form the backbone of Lesotho’s economy but often struggle to access finance due to informality and lack of compliance.

According to Mokoko, the agreement will encourage the gradual formalisation of SMEs by aligning banking processes with tax compliance measures. This, she said, will not only broaden Lesotho’s tax base but also expand financial inclusion.

“More entrepreneurs will qualify for loans, more households will access affordable financial products, and more citizens will enjoy the protections and opportunities that come with formal economic participation,” she explained.

BAL Chairperson Matete echoed the sentiment, noting that closer collaboration between the banking industry and RSL will improve trust in the financial system while advancing national and regional integration goals.

Both institutions stressed that the MoC is not a one-off commitment but the beginning of an ongoing partnership that will evolve to address future challenges.

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