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LNDC CONTINUES TO SUPPORT ENTREPRENEURS

The Lesotho National Development Cooperation (LNDC) held the annual Partial Credit Guarantee (PGC) scheme forum in Maseru on Friday.
The purpose of the forum was explained by the Public Relations Manager, Ms. Tiisetso Moremoholo as to reflect on how far the scheme has come in terms of its success.
On behalf of the Minister of Trade and Industry, Dr Francis Sefali noted that this day marks yet another milestone in building the economy of the country by the development of Basotho entrepreneurship projects.
He said this scheme also drives the initiative that emanates from the National Strategic Development Plan II which prioritises agriculture, technology and innovation to mention among others.
Dr Sefali noted that it is also the government’s plan to seek to boost industries across the country with the sole purpose of creating opportunities and improving the country’s economy
Meanwhile, the Interim Chief Executive Officer, Mr. Molise Ramaili revealed that this scheme was introduced with the purpose to fight the lack of credit for small businesses across the country.
He showed that credit guarantee was modified from 50 percent to 75 percent due to the COVID-19 pandemic that hit the globe.
Mr. Ramaili pleaded with the beneficiaries of the scheme to use the credit appropriately and not to cover their other debts.
He however applauded the banks which have been working closely as well as the beneficiaries for making the scheme a success.
While giving the inside of the scheme, the Acting General Manager Development Finance, Mr. Semethe Raleche said the scheme was implemented as the government became aware of the chronic challenges that the economy of Lesotho faced due to the COVID-19 pandemic.
He said the scheme was launched with the aim of becoming a pivotal policy instrument that the government used to mitigate economic development.
He revealed that they have partnered with about four banks operating within the country in the implementation of the scheme.
Speaking on behalf of the beneficiaries, Mr. Tankiso Tshabalala applauded the LNDC for the benefit it has presented before the Basotho nation, saying it is going to help bring so many opportunities for Basotho and also allow them to compete for big business opportunities even with a foreign investor.
The Partial Credit Guarantee (PCG) scheme was launched and implemented in 2011 and modified in 2020 to respond to the COVID-19 pandemic.
It now covers 75 percent of the loan amount a business borrows from commercial banks and has expanded eligibility to all locally registered businesses irrespective of the nationality or sector of the economy.
It has approved funding to the value of M350 million which has come solely from the government of Lesotho.
Source: LENA 22/04/2022

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