Lesotho PostBank has confirmed that M20 million has so far been approved to finance applicants under the Inclusive Growth Fund, which was launched in June this year.

Speaking about the fund, Lesotho PostBank Head of Business, Mr. Thapelo Maliehe, said applications approved since the launch amount to approximately M20 million out of the M300 million allocated by the government for the initiative.

Mr. Maliehe said 70 percent of the M300 million fund has been reserved for businesses led by women and young people, while the remaining 30 percent is available to other businesses, including those owned by men.

He further explained that the maximum amount an individual business can receive is M2 million, with all applications subject to an assessment process.

For new businesses to qualify for funding, Mr. Maliehe said they must be registered with the relevant local authorities, have a business plan and have conducted a feasibility study. Successful applicants will then be taken through an incubation process before receiving funding.

Existing businesses, on the other hand, can approach the bank directly and are required to provide two years’ worth of financial statements. Businesses that have been operating for less than two years may submit financial statements covering the period they have been in operation.

Institutions involved in the incubation programme include the Basotho Enterprise Development Corporation (BEDCO), through Sebabatso, and Competitiveness and Financial Inclusiveness (CAFI).

The agreement for the project was signed in November last year.

Meanwhile, Minister of Finance Dr. Retselisitsoe Matlanyane, speaking on Friday last week during the launch of a hydropower station in Semonkong, encouraged young people to take advantage of the Inclusive Growth Fund.

She said the initiative forms part of the government’s efforts to address unemployment by creating opportunities for businesses and promoting economic participation among young people.

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