Moroke Sekoboto
IN a significant effort to empower Small and Medium Enterprises (SMEs) in Lesotho, LNIG Hollard has launched an innovative insurance product called Mphatlalatsane SME Cover.
The launch, held at Avani Lesotho, brought together brokers, banking partners, microfinance institutions, and notable representatives from the Ministry of Trade & Industry, Lesotho National Development Corporation (LNDC), Basotho Enterprises Development Corporation (BEDCO), and FinMark Trust.
LNIG Hollard Underwriting Manager, Mabohlokoa Makoshola, emphasised the company’s commitment to delivering solutions that create a better future for all stakeholders.
“This SME product is more than just an insurance solution; it is a commitment to fostering growth, stability, and resilience within the SME community, aligning with our purpose as a business,” Ms Makoshola said.
She underscored the vital role of SMEs in Lesotho’s economy and the challenges they faced, including limited access to financial services and inadequate risk management options.
“Existing insurance products are often not tailored to the needs of SMEs, leaving them vulnerable to risks without proper safeguards.”
The Mphatlalatsane SME Cover has been meticulously designed to address both business and employee-related risks. Ms Makoshola outlined the product’s offerings:
- Business Property Damage: Protection against damage from fire, theft, or natural disasters.
- Liability to Third Parties: Coverage for legal liabilities arising from third-party claims
- Personal Accident Cover: Compensation for death, disability, and/or medical expenses due to accidental bodily injury to the business owner.
- Employee Benefits: Workmen’s compensation, life cover, provident fund, keyman insurance, family funeral benefits, and accidental death cover.
Additionally, SMEs can insure self-propelled machinery and access specialist liability coverage through Surething Lite, Lesotho’s first all-in-one third-party legal liability policy for small businesses. This includes product liability, cyber liability, professional liability, and more.
“This comprehensive approach was informed by lessons from other African countries and insights from FinScope studies tailored to the SME sector. It ensures that the product meets the unique needs of SMEs in Lesotho, enabling them to navigate the complexities of today’s business environment confidently.”
The Mphatlalatsane SME Cover goes beyond insurance by educating SME owners and employees on risk management and mitigation.
“By increasing risk awareness and promoting risk improvements, SMEs can achieve a higher level of risk maturity and reduce financial losses related to business operations, ownership, and employees,” Ms Makoshola noted.
The product also encourages investment in higher-risk activities with potentially higher returns by providing coverage for such investments. It enhances SME creditworthiness, making formal credit more accessible and potentially reducing collateral requirements. By allowing SMEs to pay regular premiums for risk protection, businesses can allocate funds toward better technologies, product innovation, and income-generating activities.
“Mphatlalatsane SME Cover contributes to financial inclusion and increases insurance penetration in the SME sector, aligning with the 2030 Agenda for Sustainable Development.”
The presence of LNDC, BEDCO, and FinMark Trust representatives at the launch emphasised the government’s dedication to SME development. Financial sector growth and inclusion are key objectives under Lesotho’s National Strategic Development Plan II (NSDP II), which prioritises private sector-led economic growth and job creation.
“Mphatlalatsane SME Cover marks a new dawn for SME insurance in Lesotho. Named after the morning star, Mphatlalatsane signifies new beginnings, transformation, and breakthroughs essential for the SME sector in Lesotho. This comprehensive solution is poised to significantly impact the SME landscape by fostering growth, stability, and resilience,” Ms Makoshola said.
The product offers three tiers to suit different budgets:
- Bronze: M560 per month.
- Silver: M750 per month.
- Gold: M1000 per month.
With its focus on inclusivity and innovation, LNIG Hollard’s Mphatlalatsane SME Cover is set to transform Lesotho’s SME sector, enabling businesses to thrive and contribute to the country’s economic development.