Lesotho Competitiveness and Financial Inclusion Project

active

The project has three components that will support the Government’s efforts to expand the private sector in Lesotho. Component 1. Enhancing financial inclusion and resilience of MSMEs -- Component 1 will strengthen the delivery of efficient and reliable government-to-business (G2B) digital services to facilitate the establishment and operation of new businesses and reduce the time and cost of regulatory compliance which in turn will enhance the competitiveness of MSMEs. It will also provide support for firms to access finance and be more resilient to shocks from climate, pandemic, and other natural disasters. Component 2. Scaling support for entrepreneurship and MSMEs -- Component 2 aims to strengthen the nascent entrepreneurial ecosystem and access to early-stage finance for startups and youth owned businesses, support the digitization of MSMEs, and facilitate private investment in high-potential value-chains including encourage upgrading of skills and adoption of sustainable production practices by businesses to enhance productivity and green growth. Component 3. Project management and implementation support -- Component 3 will provide support for the management and implementation of project-associated activities.The project contributes directly to High Level Objective (HLO) One and Three of the upcoming Country Partnership Framework (CPF) (FY 2022-26). Under HLO 1, Increased Employment in the Private Sector, the project will contribute to CPF Objective One (Improved enabling environment for private investment and competitiveness) and CPF Objective Two (Increased opportunities and capabilities for MSMEs and entrepreneurs). Under HLO 3, Improved Climate Resilience, the project will contribute to CPF Objective Seven - Increased climate-sensitive spatial planning, service delivery, financial and infrastructure resilience – through strengthening the risk financing instruments under Component 1.3.