Central Bank of Lesotho and National University of Lesotho Launch Personal Finance Management Programme to Combat Over-Indebtedness

The Central Bank of Lesotho (CBL) and the National University of Lesotho (NUL) have strengthened their partnership to improve financial literacy and reduce high levels of over-indebtedness among salaried employees through the launch of a Certificate Programme in Personal Finance Management. The programme was officially launched at the Lehakoe Cultural and Recreation Centre and represents a significant step toward equipping Basotho with practical financial management skills. As households continue to face economic uncertainty and rising living costs, financial education has become increasingly important in helping individuals make informed decisions about spending, saving and borrowing. The initiative reflects a shared commitment by both institutions to improve financial resilience and support sustainable economic development across Lesotho. By providing structured financial education, the programme aims to empower participants with the knowledge needed to achieve greater financial stability and long-term prosperity.

Speaking during the launch, Central Bank of Lesotho Governor Dr. Maluke Letete described the collaboration with the National University of Lesotho as an important milestone in building a financially resilient nation. He explained that the certificate programme was developed after recognizing widespread over-indebtedness and low levels of financial literacy among many Basotho, particularly salaried employees. According to Dr. Letete, the bank introduced a nationwide financial education campaign in 2022 that targeted government employees, teachers, healthcare practitioners and members of the security sector. While the campaign has produced encouraging results, he acknowledged that many people still struggle with managing debt and making sound financial decisions. The new certificate programme is intended to provide deeper and more practical knowledge that addresses these ongoing challenges.

Dr. Letete emphasized that financial difficulties are often driven not only by limited financial knowledge but also by personal attitudes and behaviors toward money management. He noted that poor budgeting habits, excessive borrowing and inadequate financial planning continue to contribute to high debt levels among working Basotho. The Personal Finance Management Programme has therefore been designed to help participants develop healthier financial habits while improving their understanding of personal finance. Through structured learning, participants will gain practical skills in budgeting, saving, responsible borrowing, debt management and financial planning. These skills are expected to help individuals make informed financial decisions that improve both their personal well-being and their long-term financial security.

The Governor also highlighted several complementary initiatives that the Central Bank has introduced to improve financial literacy throughout the country. One of the most significant projects involves collaboration with the Ministry of Education and Training to integrate financial education into the national school curriculum. Dr. Letete explained that the objective is to expose children to financial concepts from an early age so they develop responsible money management skills before entering adulthood. He revealed that the entire high school curriculum has already been integrated with financial education content while work continues to expand the programme into primary schools. By teaching financial literacy at every stage of education, the Central Bank hopes to build a generation of financially informed citizens capable of navigating increasingly complex financial environments.

Beyond classroom education, the Central Bank continues to promote financial awareness through its annual Money Month campaign, which forms part of a global initiative aimed at encouraging financial education. In Lesotho, the campaign extends over several months to ensure that communities across the country’s mountainous terrain have an opportunity to participate. The programme reaches diverse audiences through educational activities that promote budgeting, saving, investing and responsible borrowing. Dr. Letete noted that expanding access to financial education remains a priority because financial literacy serves as one of the most effective tools for reducing economic vulnerability. Continued public engagement ensures that financial education reaches people beyond formal academic institutions.

Dr. Letete further explained that recent global and regional economic events have increased financial pressure on many households. He cited the COVID-19 pandemic, the Russia-Ukraine war, rising fuel prices associated with the recent United States-Iran conflict and job losses linked to United States tariffs as major factors affecting household finances. These economic shocks have made it more important than ever for families to strengthen their financial resilience through careful planning and responsible money management. According to the Governor, financial education gives individuals the knowledge required to prepare for unexpected financial challenges while protecting their household finances. Developing stronger financial skills enables families to adapt more effectively during periods of economic uncertainty.

The Governor also pointed to international recognition of financial literacy as an essential life skill. He noted that the Organisation for Economic Co-operation and Development and its International Network on Financial Education identify financial literacy as a critical tool for empowering individuals, strengthening households and improving the overall financial well-being of society. Dr. Letete stressed that policymakers and regulatory authorities have a responsibility to create programmes that enable citizens to make informed financial decisions with confidence. He reaffirmed that the Central Bank remains committed to aligning its financial education efforts with regional, continental and international best practices. Through collaboration with various stakeholders, the bank aims to continue empowering Basotho with practical financial knowledge that supports responsible economic participation.

National University of Lesotho Vice Chancellor Professor Isaac Olusila Fajana welcomed the partnership and described it as a transformative collaboration that demonstrates how higher education institutions can respond directly to national challenges. He explained that the certificate programme represents far more than the introduction of another academic qualification because it reflects the university’s broader mission of transforming lives through education. Professor Fajana emphasized that effective money management has a direct impact on people’s quality of life, affecting children’s education, business creation, family stability and overall well-being. He observed that poor financial management often leads to stress and hardship, while responsible financial planning creates opportunities for personal and national development. His remarks highlighted the importance of equipping citizens with practical skills that extend well beyond the classroom.

Professor Fajana also praised the university’s academic staff for responding quickly when the Central Bank approached NUL to develop the programme. He explained that the university mobilized leading experts from the Department of Economics under the leadership of Dean of Social Sciences Professor Regina Thetsane to design and implement the curriculum efficiently. The university’s academic and administrative leadership worked together to ensure that the programme would address the financial challenges facing the country’s workforce. This collaborative effort demonstrates the important role universities can play in developing practical solutions to national socio-economic issues. By combining academic expertise with real-world financial education, the programme aims to create lasting positive change for individuals, families and communities throughout Lesotho.

The launch of the Certificate Programme in Personal Finance Management marks an important milestone in Lesotho’s efforts to strengthen financial literacy and reduce over-indebtedness among salaried employees. Through the partnership between the Central Bank of Lesotho and the National University of Lesotho, Basotho will have access to practical financial education that promotes responsible budgeting, saving, investing and borrowing. The programme complements broader national initiatives that introduce financial education in schools while expanding public awareness through nationwide campaigns. As economic conditions continue to evolve, developing strong financial management skills will remain essential for building resilient households and supporting sustainable national development. This initiative demonstrates that investing in financial education is ultimately an investment in the long-term economic stability, confidence and prosperity of the people of Lesotho.