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SMMEs set for government funding from M10 million fund

SMMEs set for government funding from M10 million fund

The Minister of Small Businesses Development, Cooperatives and Marketing Mr. Chalane Phori says the Ministry has been awarded M10 million of the Partial Credit Guarantee Scheme Fund (PCGF) which will be accessible for Basotho through the Lesotho Post Bank.
This he said during a press briefing held at Maseru on Friday.
He pointed out that out of the M50 million awarded for the Fund over three years ago, M35 million has already been utilised and 240 businesses have benefited. He stated that out of the remaining M15 million, Basotho will be able to access the M10 million through loans.
Mr. Phori emphasised that the Funds will be used to promote businesses in the country with the main focus on Small Medium and Micro-sized Enterprises (SMMEs). He pointed out applications will be accepted from every Mosotho in small business, adding that there will be transparency in the selection process.
The Principal Secretary in the Ministry, Mr. Lerata Pekane stated that the aim of the Ministry is to help business in the country to grow. He said the model is only a pilot adding that if it is successful, more funds will be requested so that more Basotho can benefit from the scheme.
He appealed to Basotho who have had access to the Fund to repay their loans in order to ensure effective circulation of the funds as well as the development of the country’s economy through improved businesses.
The Government of Lesotho (GoL) signed the Memorandum of Understanding (MoU) with commercial banks on the establishment of a M50 million Partial Credit Guarantee Fund (PCGF) in May 2012 as a fund to facilitate access to finance for the Micro Small and Medium Enterprises (MSMEs) by providing a guarantee to enterprises that do not have access to credit.
Ministry of Small Business Development was established to help to bridge the gap between the upcoming business community and already established businesses in the country.
Lena

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