LESOTHO GOVERNMENT LAUNCHES M68 MILLION CLIMATE FUND TO PROTECT MSMES AND JOBS.

 The government has launched a M68 million Climate Resilience and Preparedness Support Facility to help Micro, Small and Medium Enterprises (MSMEs) withstand the growing impact of climate change while protecting jobs and livelihoods.

Speaking at the launch, the Minister of Trade, Industry and Business Development, Mr. Motlatsi Maqelepo, said the facility, funded through the World Bank backed Competitiveness and Financial Inclusion (CAFI) Project, will enable businesses to invest in measures that reduce the impact of droughts, floods and heavy snowfall.

“Our priority is to protect businesses and the jobs they create. When businesses are affected by climate shocks, families lose income. This facility will help enterprises safeguard their investments, remain operational and become more resilient,” he said.

He stated that under the programme, the government will finance up to 80 percent of the cost of approved climate resilience investments, while participating businesses will contribute the remaining 20 percent.

He said MSMEs form the backbone of Lesotho’s economy but are among the most vulnerable to climate-related disasters, which can damage infrastructure, destroy stock, kill livestock and interrupt business operations.

CAFI Project Managing Director, Mr. Chaba Mokuku said the facility forms part of a broader strategy to strengthen the private sector and improve the country’s business environment.

He said the strategy is built on three pillars, creating a level playing field for businesses, simplifying company registration and licensing processes and improving trade through the introduction of a single window system.

Mr. Mokuku added that CAFI is also expanding online government services and working with institutions such as the National University of Lesotho and the Ministry of Agriculture to build skills that support private sector growth.

He said the project’s long-term objective is to create a competitive and sustainable economy driven by a resilient private sector capable of creating more jobs.

Meanwhile, applications for the Climate Resilience and Preparedness Support Facility are now open to all eligible formally registered businesses. Application forms are available from the CAFI Project Office, MTIBD district offices and the CAFI Project website.

Source: Lesotho News Agency [LENA]