In a major step toward addressing Lesotho’s housing challenges, Lesotho PostBank (LPB) and the Lesotho Housing and Land Development Corporation (LHLDC) have signed a landmark agreement to make home ownership more accessible, especially for low-income earners.
The two institutions officially recently entered into a Memorandum of Understanding (MoU), pledging joint efforts to deliver affordable housing to financially constrained Basotho.
The agreement outlines collaborative efforts to provide standard two-bedroom houses in selected areas, with LPB offering relaxed home loan terms and competitive interest rates.
The MoU was signed by LPB’s Chief Executive Officer, Mokhachane Mopeli, and LHLDC’s Managing Director, ‘Malesekela Matekane. The initial rollout will cover housing developments in Linakotseng (Maseru), Manobo (Mafeteng), and select locations in Qacha’s Nek, though development in the latter is still pending.
The project offers more than just walls and a roof. The standard units will include two bedrooms, open-plan kitchen and living areas, and will be connected to essential infrastructure including electricity, piped water, roads, and internet-ready provisions.
Speaking at the signing ceremony, Mopeli stressed the cultural and emotional significance of home ownership for Basotho.
“It is cultural for us as Basotho, when introducing ourselves, to mention our name and where we come from, meaning where we live. That embodies who we are,” he said.
“Building a home instils pride and dignity. Every Mosotho deserves that.”
He explained that the initiative aligns with LPB’s broader mission to improve lives by providing financial products that empower the nation’s citizens.
“Our role is not just to give out loans, but to enable clients to access homes that come with all necessary amenities. We also offer additional financing for furnishings or even car loans to improve their standard of living,” said Mopeli.
LPB’s Senior Branch Manager, ‘Mamahanetsa Mahanetsa, highlighted the accessibility of the loan offerings, emphasising that even young professionals and low-income earners can qualify.
“Even clients earning as little as M3, 000 per month may qualify for these loans, depending on their financial profiles,” she said.
She noted that LHLDC’s lowest-priced houses are valued at approximately M300, 000 and come fully equipped with showers or bathtubs, electricity, and sanitation, making home ownership a viable alternative to renting.
“It makes more sense for someone renting a bachelor flat to consider this opportunity, the rent they pay monthly could easily become a loan repayment for a home they actually own,” she explained.
For younger clients, the bank is offering repayment periods of up to 30 years, designed to keep monthly instalments manageable and within reach of those just starting their careers.
Interested individuals are encouraged to visit LPB branches nationwide for consultation and eligibility assessments to begin their journey toward home ownership.
For her part, Matekane said the partnership responds directly to Prime Minister Sam Matekane’s vision of home ownership for all Basotho.
“LHLDC’s mandate is to provide housing for low-income earners and allocate sites for development. However, one of our biggest hurdles has always been access to funding,” she said.
“This partnership with Post Bank allows us to relax stringent lending criteria that have excluded many deserving Basotho from accessing home loans.”
She added that beyond standard homes, the partnership would introduce ‘off-plan’ construction options, allowing clients to build homes tailored to their individual needs and designs, yet still within the financial frameworks of the programme.
The partnership between LPB and LHLDC is being hailed as a timely intervention that addresses multiple challenges simultaneously. Beyond tackling the national housing deficit, the initiative is expected to inject growth into the construction and financial services sectors while promoting long-term investment and wealth creation among citizens.
The collaboration represents a shift toward inclusive financial services, removing barriers that have historically prevented low-income Basotho from achieving home ownership. By combining LHLDC’s infrastructure expertise with LPB’s flexible financing options, the partnership creates a sustainable pathway to dignified living for thousands of families.
Summary
- In a major step toward addressing Lesotho’s housing challenges, Lesotho PostBank (LPB) and the Lesotho Housing and Land Development Corporation (LHLDC) have signed a landmark agreement to make home ownership more accessible, especially for low-income earners.
- She noted that LHLDC’s lowest-priced houses are valued at approximately M300, 000 and come fully equipped with showers or bathtubs, electricity, and sanitation, making home ownership a viable alternative to renting.
- “It makes more sense for someone renting a bachelor flat to consider this opportunity, the rent they pay monthly could easily become a loan repayment for a home they actually own,” she explained.
Seabata Mahao is a general news reporter with special focus on Business and Sports. Started working at Newsday in 2021. Working in a team with a shared goal is what I enjoy most and that gives me the motivation to work under any environment leading to growth.
