The Lesotho Government in co-operation with the Lesotho National Development Corporation (LNDC) has set aside M410 000 000 to help Basotho grow their businesses so to improve the country’s economy. These funds will be used as security when traders apply for loans at the commercial banks operating in the country.
The Minister of Trade and Industry, Dr Thabiso Molapo disclosed this when addressing Mokhotlong business community at the district road show organised by LNDC in Mokhotlong. The road shows aimed for all districts countrywide intended to introduce LNDC products to the business communities in the country.
Dr Molapo added that to further create a conducive environment for many Basotho to engage in doing business, the ministry has drafted amending laws that will protect businesses, saying the Business Licensing and Registration Regulations 2020 has been submitted in Parliament for discussion and will be implemented once passed.
He stressed that the objective of the legal framework is to ensure that Basotho own and run businesses in the villages, saying Basotho are good in farming hence urged them to work hard in this sector as it is regarded as a leading factor in growing the country’s economy.
Dr Molapo noted that his ministry will work hard to ensure that foreign nationals do not engage in small businesses hence Basotho need to start taking their businesses serious.
He therefore appealed to Mokhotlong community to support this initiative as it is intended to respond to local business communities’ outcry that foreign nationals have taken a big stake in doing business in the country.
He thanked traders for attending the event while on the other hand appreciated LNDC for unpacking the business opportunities that Basotho can venture into for the country’s economic growth.
Also speaking, LNDC Chief Executive Officer, Mr. Mohato Seleke said they are going to help Basotho as they will be accomplishing their mandate of developing business.
He mentioned that half of the assets is allocated to Agriculture hence Basotho should participate in farming.
Mr. Seleke said that the payment structure of the loan matches the cash follow.
He said the main reason they visited in Mokhotlong was to explain more about three products of LNDC thus; Quasi Equity, Equity Finance and Project Preparation Facility.
The LNDC General Manger Development Finance, Mr. Bereng Theko outlined how Covid-19 Response Partial Credit Guarantee (C-PCG) is going to work, saying to access C-PGC the beneficiaries will first have to request the bank to send the application to LNDC on their behalf.
He added C-PCG is a risk sharing instruments that provides 75% guarantee on loans granted to enterprises provided by the following commercial banks; Standard Lesotho Bank, Post Bank, Nedbank and First National Bank.
The loan amount to be granted shall be less than M 200 000 and not over M 800 000 and only registered companies that have existed for a minimum of 12 months will be eligible to the loan.
So far, LNDC has visited Leribe, Mafeteng and Mokhotlong and the next district to be visited is Qacha’s Nek.
By Staff Reporter: ‘Maphoka Likotsi