…to make housing affordable
Rethabile Pitso
THE Lesotho Post Bank (LPB) and the Lesotho Housing and Land Development Corporation (LHLDC) have partnered to make home ownership more accessible to Basotho, particularly low-income earners.
The two institutions signed a memorandum of understanding (MoU) in Maseru on Thursday, committing to work together in facilitating affordable housing through relaxed loan terms and interest rates.
LPB Chief Executive Officer, Mokhachane Mopeli, and LHLDC Managing Director, ’Malesekela Matekane, signed the agreement, which will initially apply to designated areas identified by the housing corporation.
According to the deal, qualifying clients from the lowest income brackets at Post Bank will be eligible to apply for home loans to purchase standard two-bedroom houses.
Each unit will feature an open-plan kitchen and living area, and come fully equipped with water, electricity, and road infrastructure — the key amenities of a modern starter home.
In his address, Mr Mopeli urged Basotho to prioritise investment in housing, saying it was one of the most secure and valuable assets a person could own.
“It is cultural for us as Basotho, when introducing ourselves, to mention our name and where we come from — meaning where we live,” Mr Mopeli said.
“That embodies who we are. This understanding drove us to take action so that every Mosotho can proudly say they have a home to their name. Building a home instils pride and dignity,” he said.
Mr Mopeli also said the initiative aligned with Post Bank’s mission of improving the lives of Basotho by providing financial products that empower citizens.
“Our role in this initiative is to offer loans that enable clients to purchase LHLDC-identified houses equipped with all essential amenities — water, electricity, roads, and even internet provisions. We also extend additional loans to furnish the homes and even offer car loans to enhance living standards,” he said.
He emphasised that the bank’s home loans were affordable and designed not to overburden clients.
“We pride ourselves in providing loans that are within our clients’ means. Our goal is to empower, not to suffocate,” he added.
Speaking to the Sunday Express on the sidelines of the event, LPB Senior Branch Manager, ’Mamahanetsa Mahanetsa, encouraged the youth to take advantage of the initiative early in their careers.
“Owning a home is a smart investment. We encourage everyone to visit our branches for consultations to learn about their eligibility for these loans.
“Even clients earning around M3000 per month may qualify, depending on individual financial assessments,” she said.
She explained that the lowest-priced houses on offer from LHLDC were valued at around M300,000 and came with two bedrooms, bathrooms fitted with showers or bathtubs, and other basic amenities.
“It makes more sense for someone renting a bachelor flat to consider this opportunity — the rent they pay monthly could easily become a home loan instalment for a house they actually own,” she said.
Ms Mahanetsa added that younger clients could benefit from long-term repayment plans of up to 30 years, allowing them more flexibility and affordability.
“We ensure clients are well informed about repayment terms and interest rates to help them make sound financial decisions,” she said.
For her part, Ms Matekane described the partnership as a step forward in supporting Prime Minister Sam Matekane’s vision of ensuring every Mosotho has a home.
“LHLDC operates under the Ministry of Home Affairs and Chieftainship with a mandate to provide housing for low-income earners, allocate sites, and build rental flats.
“One of our biggest challenges has always been access to funding.
“The Prime Minister committed to ensuring affordable homes for financially challenged Basotho, and this partnership with Post Bank allows us to relax some of the stringent requirements that have prevented many from obtaining home loans,” Ms Matekane.
She revealed that LHLDC had identified Linakotseng in Maseru, Manobo in Mafeteng, and sites in Qacha’s Nek — though the latter are yet to be developed — as initial project areas.
She added that LPB had also agreed to the corporation’s proposal to introduce “off-plan” options, which would allow Basotho to construct homes tailored to their preferred designs.