Local insurance company, LNIG Hollard has launched ‘Mphatlalatsane’, a pioneering insurance product aimed at empowering small and medium enterprises (SMEs) in Lesotho, addressing a vital need for coverage.
The launch was held this week in Maseru, and ‘Mphatlalatsane’ (morning star) was hailed as a significant move to support SMEs in the country.
The event attracted several business leaders and stakeholders, all eager to witness a transformative step towards enhancing the financial security of local businesses.
The general manager of LNIG Hollard, Kefuoe Ramokhele, underscored the findings of a critical 2016 study, which revealed that only two percent of SMEs in Lesotho had access to adequate insurance products.
This significant gap highlighted the urgent need for tailored solutions to address the unique challenges faced by small businesses in the region, Ramokhele noted.
In response, LNIG Hollard has introduced the Mphatlalatsane scheme, specifically designed to support SMEs that have historically struggled to secure effective insurance coverage.
LNIG chief executive officer, Mpho Vumbukani, emphasized the scheme’s role in providing essential protection, enabling businesses to operate with confidence even during crises.
“We saw this as a way to address their needs effectively,” Vumbukani stated.
The comprehensive insurance package includes coverage for business property damages, personal accidents, third-party liability, and worker’s compensation for job-related injuries. Additionally, the scheme offers group funeral and disability benefits, ensuring holistic protection for SMEs and their employees.
SMEs can select from three tailored plans: the Bronze scheme at M560 per month, the Silver option at M750, and the Gold scheme priced at M1,000. This tiered approach allows businesses to choose coverage that aligns with their financial capabilities and risk profiles.
Ramokhele highlighted the crucial role of SMEs in Lesotho’s economy, noting that they employ approximately 55,000 Basotho and have experienced a steady rise in monthly turnover.
With insurance coverage in the country increasing from two percent to 19 percent, he believes the Mphatlalatsane scheme marks a turning point for local enterprises previously lacking adequate protection.
“This is a new era for SMEs,” Ramokhele declared, citing the symbolic significance of the scheme’s name, which represents hope and new beginnings.
“Mphatlalatsane signifies the dawn of a new journey, ensuring our businesses are not just protected but empowered to thrive.
“Today’s launch marks a transformative moment in Lesotho’s insurance landscape, paving the way for greater security and growth for SMEs across the nation,” he added.
