Lesotho’s Payment System: No Room for New Entrants?

Struggling to Keep Up with the Times

Webber Newdigate has raised concerns about the lack of amendments to Lesotho’s national payment system, which would enable new market entrants to participate in the transfer of payments and enhance the current system. This comes as a surprise, given that other countries in the region are taking steps to modernize their payment systems and promote financial inclusion.

A Comparison with Guinea

Guinea has taken a different approach by adopting a law on inclusive finance, which allows new entrants to participate in the transfer of payments by improving the current system. This move is expected to enhance financial inclusion and promote economic growth.

Anti-Money Laundering Concerns

Lesotho also lacks specific laws dealing with cybercrime, leaving it vulnerable to online threats. The Financial Intelligence Unit of the Central Bank of Lesotho has published guidelines aimed at implementing financial sanctions against terrorist organizations and persons sanctioned by the United Nations Security Council.

A Look at Guinea’s Progress

In contrast, Guinea has made significant progress in this area, with a Computer Crime and Cybercrime Bill that is yet to be enacted. The country also has legislation defining rules and mechanisms for fighting cybercrime and complying with international commitments on cybersecurity.

The Impact of Lesotho’s Lack of Progress

The lack of progress in Lesotho’s payment system is likely to hinder the country’s efforts to promote financial inclusion and digital economy development. Other countries in the region, such as Guinea and CEMAC zone countries, are already operationalizing their platforms to optimize interoperability between financial institutions.

What’s Next for Lesotho?

It remains to be seen when Lesotho will take similar steps to modernize its payment system and promote financial inclusion for its citizens. The country must adapt to the changing landscape of payment systems to remain competitive and promote economic growth.