[Photo Cred: CBL]
The Central Bank of Lesotho (CBL), together with the Competitiveness and Financial Inclusion (CAFI) project, held a high-level awareness workshop today in Maseru to promote the Lesotho Registry of Interests in Movable Assets (LeRIMA). The initiative forms part of a broader national effort to enhance financial inclusion and support economic development through improved access to credit.
The event provided a platform to reflect on the progress made since the enactment of the Security Interests in Movable Property Act in 2020. Bafokeng Noosi, Director of Other Financial Institutions at CBL, emphasized that the review of both the legal framework and registry system is crucial to identifying successes, gaps, and opportunities for reform. “These changes aim to unlock finance for more Basotho and directly address key challenges like unemployment and poverty,” he said, adding that all reforms must remain aligned with global best practices.
Speaking on the legal framework of LeRIMA, Molise Sethobane emphasized that the law enhances access to finance, particularly for small, micro, and medium enterprises (SMMEs), by enabling the use of movable assets as collateral. He described it as legislation designed to simplify lending processes and prioritize transparency and trust between lenders and borrowers.
“Movable assets can now be used as security to access credit,” Sethobane stated. “Loan agreements must be documented to avoid disputes, with clearly defined terms and conditions. In cases of default, the lender is granted priority rights to repossess the asset under Section 23 of the Act.”
The system allows lenders to formally register their interests in the movable assets offered as security. While the borrower retains ownership until full repayment, this legal process minimizes the risks faced by credit providers and helps avoid financial losses.
Bolebali Taasoana took participants through the technical aspects of the LeRIMA system. She explained that it offers a digital registry for pledging assets, allows for time-stamped and certified public searches, and serves as a verifiable document admissible in courts of law.
“As of now, over M3.37 billion worth of movable assets have been registered in sectors ranging from motor vehicles and furniture to other household items,” she noted. “The registry supports a wide range of businesses, from individual and micro enterprises to medium and large-scale firms.”
On behalf of CAFI, Chaba Mokuku, Director of the project, highlighted the initiative’s role in strengthening Lesotho’s credit infrastructure. “CAFI, launched in 2023, was born out of the need to restore the private sector after COVID-19 disrupted global supply chains. It is part of a broader portfolio supported by the World Bank and recognized as one of the best-performing programs,” he stated.
He further emphasized CAFI’s focus on enhancing inclusion and economic resilience—especially among youth and women entrepreneurs—by offering financial access, mentorship, and infrastructure development.
“Access to finance remains a top priority,” Mokuku stressed. “The Security Interests in Movable Property Act of 2020 and the establishment of LeRIMA are pillars of a competitive financial infrastructure.”
He further introduced The Sovereignty Law, which came into effect on April 1, 2025. This law gives Lesotho full ownership and control over its financial and credit systems, ensuring that credit-related data and regulations are governed locally and in the interest of the country’s development.
Another major upcoming reform discussed was Credit Information Sharing—a system where financial institutions share borrowers’ credit histories through a centralized credit bureau. This allows lenders to assess creditworthiness based on past repayment behavior, improves transparency, and rewards responsible borrowers with better access to finance.
“Together, these reforms are designed to level the playing field for businesses, improve risk management for lenders, and unlock inclusive growth for the country,” Mokuku concluded.
Today’s workshop not only served as a milestone in reviewing Lesotho’s evolving financial landscape but also reaffirmed the nation’s commitment to empowering entrepreneurs through modern legal and financial tools.
