Palesa Moloinyane
Standard Lesotho Bank has loaned more than M127 million to Basotho businesses since launching its trade finance products in April 2024. This announcement was made at the launch of the Bank’s 2025 trade campaign on Wednesday this week in Maseru.
The Bank says these loans are aimed at helping small, medium, and commercial businesses across Lesotho to grow, create jobs, and keep running smoothly, especially when cash is tight or payments are delayed.
Keketso Makara, Head of Business and Commercial Banking at Standard Lesotho Bank, said that the Trade Finance products are designed to solve a major problem facing Basotho entrepreneurs, the lack of access to finance.
“Access to money is one of the biggest barriers holding back our local businesses,” said Makara. “Our Trade Finance solutions are helping to break that barrier and give businesses the support they need to succeed.”
He indicated that the bank currently offers three Trade Finance products, each with its own benefits.
First, there is invoice discounting finance, which helps businesses get paid faster. Instead of waiting for customers to pay their invoices, the business can receive the money from the bank upfront. This improves cash flow and helps them continue running without delays.
“This is very useful for businesses that are waiting on payments but still need to pay salaries, rent, or buy stock,” explained Makara.
Second, the bank offers local purchase order finance that gives businesses the money they need to buy goods or pay suppliers after receiving a verified purchase order. This means they can accept bigger orders without using up their savings.
“Many Basotho businesses lose out on big orders because they don’t have the capital to fulfill them,” said Makara. “With this product, they don’t have to miss those opportunities.”
Finally, there is contract finance that is designed for businesses working on verified contracts, especially in construction and infrastructure. It provides the money needed to complete a job, such as paying workers or buying materials, before the client pays.
“Over 80 percent of the loans we have issued so far are through Contract Finance,” said Makara. “It shows how many Basotho are involved in projects like building schools and roads, and how much support they need to complete them.”
Makara also said the bank is offering both secured and unsecured loans, depending on the size and nature of the business.
“These solutions are flexible, whether you are a small business or a contractor working on a government project, we have something for you,” he said.
With over M9.2 billion in its lending book as of December 2024, Standard Lesotho Bank is currently the biggest lender in the country. The 2025 Trade Campaign is part of the bank’s effort to make more business owners aware of these financial solutions.
“We are proud to be the only bank in Lesotho offering these kinds of innovative products,” Makara said. “This is how we live our purpose, Lesotho is our home, and we drive her growth.”
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