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
Programme components are
- Development of Member-Based Financial Institutions
- 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 period