RUFIP Programme rationale.
The Rural Financial Intermediation Programme (RUFIP)
for Lesotho responds to the third area of
strategic interventions laid out in the
International Fund for Agricultural Development
(IFAD) Country Strategic Opportunities Paper (COSOP,
1999). Lesotho PostBank (LPB) is one of the
implementing agencies for the Lesotho program.
Improved access to financial services by the
poor has been identified as one of the
priorities areas for poverty reduction in
Lesotho. In line with the National Poverty
Reduction Strategy, there is a renewed
commitment of the Government of Lesotho (GoL) to
improve access to financial services by the poor
through demand-led and market-driven approaches.
Programme components are:
• Development of Member-Based Financial
• Development of Formal Financial Institutions
for Rural Outreach
• Development of Enabling Environment for Rural
and Micro Finance
• Programme Coordination
Support to the LPB:
Under the development of formal financial
institutions for rural outreach, the following
project goals pertain to the LPB.
Institutional upgrading which comprises,
amongst other issues, restructing of the Board
of Directors, and transformation of the LPB into
a fully fledged bank
Strengthening of operations including support
in acquisition of credit module, improving
policies and procedures.
Market studies and product development
improvement of market knowledge in aid of
determining: demand for savings and credit
products; clients perceptions/satisfaction, and
introduction of appropriate credit products
The RUFIP project will support the LPB to the
tune of $3.5 million over a seven (7) year