…launches Financial Sector Development Strategy II
Moroke Sekoboto
THE nation’s financial sector is taking major steps towards modernising and strengthening financial ecosystems to support stable, resilient, and effective economic growth.
Speaking at the launch of the Financial Sector Development Strategy II (FSDS II) and the Lesotho National Payment Switch (LeSwitch) at Lehakoe Recreational and Cultural Centre on Friday on behalf of the Prime Minister, Professor Ntoi Rapapa said the initiatives align with the country’s broader economic vision.
Prof Rapapa said Lesotho’s path forward is clear: the economy must be revitalised. He acknowledged existing constraints in economic growth but expressed hope that these challenges will soon be addressed.
He emphasised that FSDS II outlines concrete steps for economic revival, job creation, and inclusive growth—particularly tackling high unemployment, which he said remains a top government priority.
“The government declared unemployment a big challenge, and it continues to be a big challenge. We hope that the initiatives launched today will address these issues,” Prof Rapapa said.
“This plan presents quantifiable milestones towards achieving this vision, and I am happy that the financial sector is joining hands with the government to find lasting solutions for Basotho. Today marks a new chapter of progress and the creation of economic opportunities for our people.”
Prof Rapapa further noted that the world is changing rapidly, and a business-as-usual approach is no longer sufficient to confront pressing issues.
He emphasized that the initiatives proposed in the strategy go far beyond traditional methods, presenting a clear plan for financing Basotho businesses—a long-standing challenge. He added that the Lesotho National Payment Switch forms the foundation for simplifying payment processes, facilitating smoother transactions, and improving financial tools for businesses and individuals through a centralized platform for electronic payments.
He also highlighted that LeSwitch will transform how transactions are conducted by lowering the cost of card payments.
“At this juncture, we urge our youths to take advantage of the ongoing financial technology revolution. Initiatives like LeSwitch present an opportunity for broader participation in the financial sector by smaller players. Our government is committed to supporting these initiatives. The Ministry of Finance and Development Planning and the Central Bank of Lesotho (CBL) cannot implement this plan alone; its success will depend on government, the private sector, civil society, development partners, and every citizen,” Prof Rapapa said.
CBL Governor, Dr Maluke Letete, said the financial sector has achieved significant progress, contributing the second-highest share to the country’s GDP. He highlighted major strides in enabling seamless financial exchanges.
“People can now move money from Mpesa to Ecocash—not by horse ride, but through mobile money—even in the most rural areas. That is one of the greatest achievements any society could hope for, but it is not enough; much more remains to be done. This vision began before 2003 as a journey to modernize the Lesotho payment ecosystem, with key developments such as the Lesotho Wire,” Dr Letete said.
He added that the journey continues and that while FSDS I delivered notable achievements, including enhanced financial sector stability, the benefits were not felt by ordinary Basotho.
“The economy grew by only 1 to 2 percent, and in some instances by just 0.5 percent. It worried us because the economy was not growing despite all efforts. Something was wrong, and we needed to act and change the trajectory—this gave birth to FSDS II, which is more forward-looking.”
For her part, Minister of Finance and Development Planning, Dr Retšelisitsoe Matlanyane, said FSDS I delivered critical reforms and succeeded in breaking the silo mentality between the financial sector and stakeholders that influence the sector’s performance.
She said that by the end of FSDS I, about 70 percent of planned work had been implemented, but the job was not complete—hence the continuation into FSDS II.
“LeSwitch is part of the work carried over from FSDS I because it was not yet finished. The reforms in FSDS II will go a long way towards unlocking financing for development. This remains a stubborn challenge, but it is feasible if we work together and remain open to thinking beyond the norms that have held us captive for a long time,” Dr Matlanyane said.
World Bank Country Representative, Dinara Djoldosheva, said FSDS II rightly places Basotho at the centre of the financial sector’s evolution. She noted that through World Bank programmes, they are supporting the growth and competitiveness of Small, Micro and Medium Enterprises (SMMEs).
She highlighted that the regional value chains project is helping entrepreneurs build capacity, upgrade their operations, and access regional and international markets through instruments such as SADC-EU economic partnership agreements.
“Whether through strengthening access to finance, developing incubation hubs, or enhancing trade facilitation, our aim is to help Basotho entrepreneurs become fully empowered participants in the economy. We are encouraged by FSDS II’s call for financial inclusion and broader financial innovation,” Ms Djoldosheva said.
“These priorities echo the objectives of the National Financial Inclusion Strategy (NFIS) II and are further supported by the integrated financing strategy, which seeks to mobilise and align public and private financing for sustainable development.”
She said that when these strategies operate in coordination, they have the potential to unlock local investment, attract external financing, and accelerate progress toward Lesotho’s national development goals.