Lesotho’s LeRIMA Boosts Financial Access for SMMEs: CBL Urges More Participation

Maseru – The Central Bank of Lesotho (CBL) has reiterated its commitment to improving financial inclusion for Small, Medium and Micro Enterprises (SMMEs) through the Lesotho Registry of Interest in Movable Assets (LeRIMA). This was highlighted during a workshop held in Maseru last week, where stakeholders gathered to assess the progress and impact of the registry.

Speaking at the event, CBL Analyst Mrs. Bolebali Taasoana explained that although LeRIMA has been operational for four years, many entrepreneurs are still unaware of its benefits. She emphasized that LeRIMA, established under the Security Interest in Movable Property Act of 2020, is designed to help SMMEs access credit by allowing them to use movable assets as collateral.

“The main objective of LeRIMA is to promote financial inclusion by providing SMMEs with easier access to financing,” said Mrs. Taasoana. She added that the platform ensures transparency in lending processes, allowing lenders to verify whether assets have already been pledged as collateral.

To access LeRIMA, institutions must register and subscribe to the system. Mrs. Taasoana noted that this registration process helps maintain the security and integrity of the platform, ensuring only authorized users can view sensitive information.

Highlighting the system’s impact, she revealed that since its launch, movable assets worth approximately M2.7 billion have been registered. These include 750 motor vehicles and 347 pieces of furniture, among other assets. To date, 1,215 individuals and 357 companies have used the system, with 304 of these companies operating in the construction sector.

Mrs. Taasoana also reported that LeRIMA has facilitated 1,358 loans ranging from M100 to M100,000, demonstrating its role in enabling SMMEs to secure funding for business growth. “This system is directly contributing to the improvement of Lesotho’s economy by supporting business expansion and job creation,” she said.

Mr. Bafokeng Notši, Director of Other Financial Institutions under the CBL, acknowledged the progress made but also stressed the need for a system review. “After years of developing this initiative, including the enactment of relevant legislation, it’s time to assess our journey and identify areas for improvement,” Mr. Notši said. He emphasized that the ultimate goal is to address pressing national challenges like unemployment and poverty by enhancing access to finance for small businesses.

During the workshop, Mr. Mosai Nyai from First National Bank (FNB) commended LeRIMA, noting that it plays a crucial role in daily banking operations, particularly in verifying collateral details. However, he also pointed out areas for improvement, suggesting that the platform’s interface be modernized. He recommended features like in-platform document viewing and timely notification alerts to enhance user experience.

In closing, Mr. Notši encouraged more businesses and individuals to register with LeRIMA, stressing that broader participation would drive economic growth and strengthen the financial sector in Lesotho.