The Central Bank of Lesotho (CBL) and the Competitiveness and Financial Inclusion (CAFI) project have launched campaigns to expand access to business finance and promote the growth of micro, small and medium-sized enterprises (MSMEs).
Launched in Maseru this week, the campaigns aim to raise awareness of financial services and encourage entrepreneurs to use movable assets as collateral to secure loans, particularly those who do not own land or other immovable property.
Speaking at the launch, CAFI Managing Director Chaba Mokuku commended the CBL for its leadership in promoting financial inclusion and carrying out its mandate with professionalism and dedication.
Mokuku reaffirmed CAFI’s commitment to supporting the implementation of the National Financial Inclusion Strategy (2024–2028) and the Second Financial Sector Development Strategy (2025–2030).
He highlighted key achievements under the partnership, including the implementation of the Electronic Data Reporting and Supervision System, the enactment of the Security Interest in Movable Property Act and the deployment of the Lesotho Electronic Registry of Interests in Movable Assets (LERIMA).
“CAFI continues to support enhancements to the registry, including verification links with key institutions to strengthen lender confidence and reduce risks,” Mokuku said.
He stressed that technical reforms alone were not enough to achieve meaningful financial inclusion, adding that small businesses also needed to understand and make effective use of available financial services.
CBL Director of Other Financial Institutions Supervision Bafokeng Noosi explained that LERIMA provides a platform for registering security interests in movable assets. The system allows individuals and businesses to use eligible assets as collateral when applying for credit.
He said the registry was particularly important for entrepreneurs who lacked land or other immovable property but owned assets that could help them qualify for financing.
Noosi noted that lenders were required to conduct due diligence to establish the nature and ownership of assets offered as collateral and determine whether they had already been pledged against other loans.
The process is intended to improve transparency, reduce lending risks and make it easier for businesses to access credit.
He revealed that assets valued at M3.7 billion had been registered on the platform to date.
Noosi said there was significant potential to increase the value of registered assets. However, he acknowledged that access to credit in Lesotho remained below desired levels.
He called for greater engagement with market players and productive sectors to identify ways of using LERIMA more effectively to stimulate economic activity and business growth.
Meanwhile, Mamakhaola Letsie, representing the microfinance sector, said training on LERIMA had helped her institution expand its lending activities and grow its credit portfolio.
She explained that many of the institution’s clients were previously underserved MSMEs, including street vendors, who often struggled to access formal financial services.
Letsie said the product had enabled the institution to reach more businesses by improving access to financing and helping entrepreneurs obtain the capital needed to establish, sustain and expand their enterprises.
She expressed satisfaction with the programme’s impact, saying it had contributed to increased business activity and supported the development of MSMEs.
Entrepreneur Makatleho Sehapi, who operates in the retail, hospitality and transport sectors, also shared her experience of using LERIMA to secure financing when her businesses needed additional capital.
Sehapi said she had used her truck as collateral to obtain a loan, providing the financial support needed to sustain and grow her business ventures.
Her experience demonstrated how movable assets can help entrepreneurs access financing that might otherwise remain beyond their reach.
The campaigns are expected to strengthen public awareness of financial services and encourage more businesses to explore available financing options, contributing to a more inclusive financial sector in Lesotho.
