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Lesotho Government Takes Steps to Boost Financial Sector Inclusion, Growth, and Welfare

Maseru - The Government of Lesotho has been working diligently to increase financial sector inclusivity by connecting policy and regulatory dots to fill historical gaps. While significant progress has been made, challenges remain, and the country needs a concerted effort at both the policy and implementation levels to achieve true financial inclusion.

Financial Inclusion in Lesotho

According to a recent study, Lesotho boasts high levels of financial access, with 19% of adults not financially served. However, barriers to financial inclusion persist, including:

Fear of credit
Lack of payslips and proof of income
Limited awareness of mobile money services

Additionally, the country’s geography and topography, combined with poor infrastructure, create significant access barriers for rural communities.

Reforms to Enhance Financial Inclusion

To address these challenges, experts recommend a range of reforms, including:

Institutional reform at Lesotho Postbank and Boliba Savings and Credit
Policies that target migrant workers
Reducing costs associated with formal savings
Leveraging existing channels to reach marginalized groups

At the micro level, customers are calling for:

More tailored products and services
Better consumer protection
Increased education and awareness of financial services

Government’s Commitment to Financial Inclusion

Despite these challenges, the Government of Lesotho is committed to enhancing financial inclusion, economic growth, and household welfare through five key objectives:

Increasing Outreach and Quality of Financial Services: Increasing access to financial services for all citizens
Increasing Financial and Investment Capacity: Enhancing financial literacy and investment opportunities
Creating and Capacitating Inclusive Financial Service Providers: Promoting inclusive financial service providers that cater to marginalized groups
Ensuring an Enabling Regulatory Environment: Creating a conducive regulatory environment that supports financial inclusion
Customer Education: Educating citizens on financial services and promoting awareness of their rights and responsibilities

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