VCL Financial Services (VCLFS), the operator of M-Pesa in Lesotho, has launched Tsetela, a mobile-based investment solution developed in partnership with STANLIB Lesotho that significantly lowers the barriers to formal investing by allowing customers to start building wealth from as little as M50.
The new service marks a major step in broadening financial inclusion by making regulated investment products more accessible and affordable for ordinary Basotho, many of whom have traditionally been excluded by high minimum investment requirements, distance and cumbersome administrative processes.
Unveiled in Maseru on Wednesday, Tsetela enables eligible M-Pesa customers to invest directly from their mobile wallets into the STANLIB Money Market Fund, earn daily interest on their savings and manage their investments through their mobile phones without having to visit a bank or investment office.
Tsetela, which means “to invest” in Sesotho, extends M-Pesa beyond payments and money transfers into wealth creation, allowing Basotho to participate in formal financial markets through a platform already widely used across urban, peri-urban and rural communities.
Through Tsetela, individual M-Pesa customers can begin investing from just M50, while Mokhatlo Group Savings customers can invest from M300. Customers may top up their investments at any time with no upper investment limit, while withdrawals can be made without restriction, subject to a processing period of up to 72 hours.
The low entry threshold is expected to make investing attainable for first-time investors and low-income earners who have traditionally viewed formal investment products as being beyond their reach.
Speaking during the launch, Tsetela Product Manager at Vodacom Financial Services, Tšepiso Secker, described the product as a collaborative effort between VCLFS and STANLIB Lesotho designed to make investing accessible to ordinary Basotho.
“Today we have launched a groundbreaking new product named Tsetela. It is an investment product developed jointly by VCL Financial Services and STANLIB. It offers Basotho an opportunity to invest in the STANLIB Money Market Fund through Tsetela, which is managed by VCL Financial Services,” she said.
She explained that interest on investments is calculated daily and paid monthly, with customers receiving SMS notifications once the interest has been credited to their Tsetela accounts.
“There is no limit to how much you can invest and no limit to how much you can withdraw. Once you initiate a withdrawal, it may take up to 72 hours for the funds to be credited to your account. Customers can invest anytime, withdraw anytime and continue topping up their investments whenever they wish,” Secker said.
She added that the product currently invests exclusively in the STANLIB Money Market Fund and does not yet offer fixed deposit or equity investment options.
Interest calculations follow the calendar month, meaning investors earn interest based on the number of days their funds remain invested during each month. Once interest has been credited, customers are free to withdraw or reinvest it without additional paperwork.
Addressing questions on estate management, Secker said Tsetela investments would be treated in the same manner as funds held in M-Pesa accounts should an account holder pass away, with unclaimed funds handled through the Central Bank of Lesotho’s established regulatory processes.
On behalf of the Minister of Finance and Development Planning, Teboho Shelile welcomed the launch, describing it as an example of private sector-led innovation supported by an enabling regulatory environment.
“Product innovation is strongest when driven by the private sector, with government creating an enabling policy and regulatory environment. Tsetela is a commendable innovation that deserves support to ensure its stability, sustainability and long-term growth,” Shelile said.
He noted that financial inclusion remains essential for economic development and encouraged Basotho to embrace regulated financial products as a means of building long-term wealth.
Vodacom Lesotho Chief Executive Officer Mohale Ralebitso said the introduction of Tsetela reflects the company’s commitment to moving digital financial services beyond simple transactions towards sustainable wealth creation.
“Financial inclusion goes beyond access to services; it enables Basotho to participate more fully in the economy and plan more confidently for the future. Tsetela is being introduced at a level that is accessible and aligned with the means of our people,” Ralebitso said.
He added that Vodacom intends to broaden the range of investment portfolios available as the product matures while continuing to provide credible alternatives to informal savings schemes and promoting responsible investment.
STANLIB Lesotho Managing Director Mohlabinyane Mohapi said Tsetela addresses longstanding barriers that have prevented many Basotho from accessing formal investment opportunities.
“Traditional investment channels have excluded many Basotho through barriers such as bank account requirements and high minimum investment thresholds, in some cases starting at M5,000. Tsetela seeks to remove these barriers and deepen financial inclusion,” Mohapi said.
He emphasised that STANLIB operates under the supervision of the Central Bank of Lesotho, with investor funds held separately from company funds and protected through regulatory oversight, independent audits and trustee supervision.
According to Mohapi, the money market fund is particularly suited to risk-averse investors and individuals seeking short-term investment options while maintaining access to their funds.
Customers can access the service by dialling *200#, selecting Savings Account, then Tsetela Account, and following the prompts. Individual customers can begin investing from M50, while Mokhatlo Group Savings customers require a minimum investment of M300. Customers are advised to familiarise themselves with the applicable terms and conditions before investing.
Summary
- VCL Financial Services (VCLFS), the operator of M-Pesa in Lesotho, has launched Tsetela, a mobile-based investment solution developed in partnership with STANLIB Lesotho that significantly lowers the barriers to formal investing by allowing customers to start building wealth from as little as M50.
- Unveiled in Maseru on Wednesday, Tsetela enables eligible M-Pesa customers to invest directly from their mobile wallets into the STANLIB Money Market Fund, earn daily interest on their savings and manage their investments through their mobile phones without having to visit a bank or investment office.
- Addressing questions on estate management, Secker said Tsetela investments would be treated in the same manner as funds held in M-Pesa accounts should an account holder pass away, with unclaimed funds handled through the Central Bank of Lesotho’s established regulatory processes.
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.
