The Ministry of Finance and Development Planning, in collaboration with the Ministry of Agriculture and Food Security and Lesotho Post Bank, have signed a five-year M200 million extension agreement for the Credit Guarantee Facility to support farmers.
The scheme aims to local farmers by providing access to tractors, farm machinery, equipment, and related accessories.
The agreement builds on a Memorandum of Understanding signed in the 2021/2022 fiscal year, further reinforcing the government’s commitment to boosting agricultural productivity and food security in Lesotho.
Managing Director of Lesotho Post Bank, Mokhachane Mopeli, emphasized their dedication to supporting Basotho, particularly in the agricultural sector.
“As an institution, we are pleased to complement the government’s long-standing efforts to promote agriculture, thereby contributing to the country’s development,” Mopeli said on Monday this week during the signing ceremony.
On his part, the Minister of Agriculture, Food Food Security and Nutrition in Lesotho, Thabo Mofosi, said the facility is a significant step towards reducing poverty in Lesotho.
He noted that despite challenging conditions, such as climate change, farmers have shown strong commitment to repaying their loans.
“We are working to educate farmers on best practices in marketing and harvesting. Our goal is to increase agricultural exports, which will not only benefit farmers but also contribute to the country’s economic growth and reduced unemployment,” Mofosi added.
Minister of Finance and Development Planning, Dr Retšelisitsoe Matlanyane, announced that the government will provide M200 million to support agricultural development.
A total of M175 million will be allocated to Lesotho Post Bank to offer farmers a 30percent subsidy on loans, repayable over five years at a reduced interest rate, she said.
Additionally, M25 million will be set aside as a guarantee fund to address potential emergencies.
The government has also acquired over 500 tractors, planters, and other essential agricultural equipment to support farmers.
Dr Matlanyane has in the past indicated that the time has come for Lesotho to implement a comprehensive agriculture transformation support programme to improve its agricultural sector and productivity.
The programme will include enhancing extension services support to farmers, improving agricultural data collection efforts, facilitating access to affordable finance, improving irrigation infrastructure footprint, supporting agricultural value addition activities as well as storage and logistics.
Prime Minister Samuel Matekane urged farmers to seize the opportunity, stating, “We, as a government, want Lesotho to be self-sufficient in food production. To our farmers, I say: come forward and claim the equipment. This is an opportunity for the youth and for the nation to produce and thrive.”
