Lesotho small businesses can secure loans with movable assets
By the AFREEQUE newsroom, based on The Reporter (Lesotho)
The Central Bank of Lesotho and the CAFI project have launched campaigns in Maseru to help small businesses access finance by pledging movable assets as collateral. The initiative is intended in particular to help entrepreneurs without land obtain loans and is part of national financial inclusion strategies, The Reporter reports.
The Central Bank of Lesotho and the Competitiveness and Financial Inclusion (CAFI) project have launched a campaign in Maseru to help small businesses obtain loans using movable assets as collateral. The scheme is intended in particular for entrepreneurs who do not own land or other real estate, The Reporter reports.
Lesotho’s Electronic Registry of Interests in Movable Assets (LERIMA) allows assets offered as collateral to be registered. Bafokeng Noosi, head of supervision of other financial institutions at the Central Bank, said assets worth 3.7 billion maloti had already been registered. Lenders must verify ownership of the assets and ensure they are not already securing another loan.
Chaba Mokuku, chief executive of the CAFI project, reaffirmed the programme’s support for the National Financial Inclusion Strategy 2024-2028 and the Second Financial Sector Development Strategy 2025-2030. The partnership has also contributed to setting up an electronic reporting and supervisory system and passing a law governing security over movable assets.
According to Bafokeng Noosi, the registry can increase transparency and reduce risks for lenders. Chaba Mokuku stressed that technical reforms needed to be accompanied by greater awareness of financial services among small businesses.
