The M400 million government Inclusive Growth Facility (IGF) is expected to create at least 25 000 jobs by 2028.
The initiative is meant to enhance youth and women led-businesses as they have for a long time been faced with significant barriers when attempting to establish or expand their businesses.
The Minister of Finance and DevelopmentPlanning, Retŝelisitsoe Matlanyane, told a press conference on Wednesday this week that out of the M400 million, Lesotho Post Bank would get M300 million to assist in giving out loans to micro-small and medium enterprises.
The remaining M100 million would be given to First National Bank Lesotho to support businesses in the struggling clothing and textile industry.
Dr Matlanyane explained that IGF is the first of its kind and will merge development finance institutions, the Basotho Enterprises Development Corporation (BEDCO), Competiveness and Financial Inclusion (CAFI) and the Lesotho National Development Corporation (LNDC) with banks, government, and incubation bubs to ensure that business works as a value chain.
She clarified that at the beginning the money willgo out through banks then to facilities which they support
“Enterprises are expected to go through incubation processes with organisations such as CAFI, BEDCO as well as LNDC which will help them with professional business proposals, whileexisting businesses can approach the banks without going through incubation,” she noted.
The Minister of Trade, Industry and Business Development, Mokhethi Shelile, urged enterprises to take advantage of this opportunity as the turnover time for loans is at least seven days.
IGF was launched by Prime Minister NtsokoaneMatekane last month, after government declared youth unemployment a state of emergency.
