Government to Establish Business Finance Fund as Step Toward Development Bank.
Written by Mohale FM on October 29, 2025
The Government of Lesotho is in the process of establishing a Business Finance Fund following a study which revealed that the country cannot currently afford to set up a full-scale development bank.
The Minister of Finance and Development Planning, Dr. Retšelisitsoe Matlanyane, announced that preparations are underway to create a national fund aimed at supporting entrepreneurs across the country.
Dr. Matlanyane explained that the government plans to initially capitalize the fund with M400 million, with the intention of gradually increasing the amount until it reaches a level sufficient to transform the fund into a development bank.
She recalled that the government had previously promised to establish a development bank to support business growth, but recent findings showed that such an initiative would require substantial financial backing.
As a result, the government decided to begin with a more manageable approach — creating a fund that can grow over time into a fully operational Development Bank of Lesotho.
