Standard Lesotho Bank pumps over M127m in business loans for Basotho

STAFF REPORTER

Maseru – Since the launch of the Trade Finance solutions in April last year, Standard Lesotho Bank has provided business loans totaling over M127 million for commercial entities in Lesotho.

This was revealed by Keketso Makara, the Bank’s Head of Business and Commercial Banking, as the bank launches the Trade Campaign for 2025.

Standard Lesotho Bank launches this campaign to continue with efforts to create awareness for Basotho, to be aware of the available options that respond to the challenge of access to finance for businesses, particularly those in enterprise and commercial banking.

These offerings are designed to bolster the critical role businesses play in the country’s economy, serving as the backbone of the supply chain and significant employers for Basotho families.

“As a leading bank for entrepreneurs in Lesotho, we thrive on exploring new solutions to address the challenges faced by our businesses. The relaunch of our Trade Finance products is testament to the fact that we have put together a solid portfolio that has expanded opportunities for small, micro, and medium enterprises (SMMEs) as well as commercial businesses operating in Lesotho,” he stated.

Trade is a fundamental economic activity, involving the purchase and sale of goods and services, facilitated by monetary exchange. In modern economies, liquidity is essential for uninterrupted trade, and Standard Lesotho Bank aims to ensure that businesses, regardless of size, have the necessary capital to sustain operations and achieve growth.

Access to finance has been a significant barrier to economic growth in Lesotho, particularly for indigenous businesses. Standard Lesotho Bank’s new Trade Finance solutions are designed to eliminate this barrier, providing much-needed financial support for local businesses.

The three key products under its Trade Finance portfolio are: Invoice Discounting Finance, this product allows businesses to draw money against sales invoices before payment is received. This improves working capital and cash flow, helping businesses maintain operations despite delayed payments.

Local Purchase Order (Finance provides capital for businesses to pay suppliers in advance against verified purchase orders. It enables businesses to fulfill large orders without depleting cash reserves.

Lastly, Contract Finance offers working capital for businesses to complete verified contracts, with the tenure limited to the contract period. It ensures that contractors, such as those building schools, can continue their projects by covering expenses like staff salaries while awaiting payments.

“Over 80 percent of the loans we have provided are under the Contract Finance product, which is not surprising given the upsurge in construction and infrastructure that we have seen in recent months,” Makara added.

These innovative lending solutions are available for both unsecured and secured lending, highlighting Standard Lesotho Bank’s commitment to fostering business growth and sustainability in Lesotho.

With the introduction of these Trade Finance products, Standard Lesotho Bank is poised to play a pivotal role in bridging the gap between access to finance and the smooth operation of Basotho businesses, driving economic growth and development in the region.

‘’This is how we, Standard Lesotho Bank, live true to our purpose when we say, ‘Lesotho is our home, we drive her growth.’ We are currently the only bank bold enough to introduce these innovative solutions. Boasting the largest lending book in the country, exceeding M9.2 billion as of December 2024,” concluded Makara.