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Rose Moremoholo

MASERU

MOBILE money transfer platforms have helped empower consumers and brought thousands more into the financial sector, according to the deputy governor of the Central Bank of Lesotho (CBL), Masilo Makhetha.

Makhetha was speaking at the launch of the Mobile Money Campaign on Monday. The campaign to promote the use of mobile money platforms will end on Friday.

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Launched in 2012, Vodacom’s M-Pesa and Econet Telecom Lesotho’s Ecocash have helped thousands in rural areas make financial transactions and save money.

Nearly 70 percent of Lesotho’s 2 million people live in rural areas.

The central bank sees the platforms as a solution to its ambition to bring more people, especially those in rural areas, into the financial sector.

Lesotho’s geography means some people live in far-flung areas in the mountains where commercial banks don’t see economic value in putting branches.

Using the existing mobile network, money transfer platforms have bridged the gap between customers and the financial services. Distance is no longer a barrier.

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Once thought to be just a convenient way to communicate, the mobile phone is now providing ways to send and receive money as well as paying bills. The result is that a farmer in the backwaters of Mokhotlong, for instance, can pay for his fertilizer in Maseru.

People once considered unreachable by commercial banks now have access to financial services.

Banks too have been quick to tap into the mobile money market, both as a way of fending off competition from mobile networks and enhancing convenience.

Insurance companies have also entered the fray, using the platforms to offer simplified products and easier ways of paying premiums.

All these, according to Makhetha, have helped improve levels of financial inclusion in Lesotho. And this is happening without the need for huge investment in Automated Teller Machines (ATM) and bank branches in remote areas, he noted.

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“It cannot be disputed that mobile money is changing the face of banking globally. Traditional banking was built with branches, cards and large deposits in mind, whereas billions of users are small depositors and business located far from branches,” Makhetha said.

He said this means the conventional banking system has not been able to provide financial services to larger numbers of low-income and poor people especially in the remote areas because of the high costs of physical infrastructure and operational costs.

“On the contrary, mobile phone systems can be placed anywhere as long as there is wireless phone connection and this overcomes the problem of distance and lack of bank branches in remote areas,” Makhetha said.

“For people without bank accounts they can easily use this system which will enable them to save and use money in a safer manner than putting it under mattresses”.

He revealed that since last December M-Pesa and Ecocash have circulated at least M68 million. Comparative figures for the same period last year are not available.

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As of December 2015 there had been 751 743 airtime purchases, 243 169 cash withdrawals, 321 768 bill payments and 221 257 domestic money transfers.

Makhetha however said the tremendous growth has not been without huge challenges, most of which have nothing to do with system but market dynamics.

The use of the platforms as a way to pay salaries is yet to catch on in the market.

This is despite the mobile money’s “potential to reduce the hurdles of salaries processing of contracts and casual workers by different organisations in the country including the government of Lesotho,” said Makhetha.

He said banks, mobile operators, retailers and independent companies have to work together to enhance the use of mobile money platforms.

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“In this context, payments and banking must be available everywhere for people to trust it. We have to strengthen the legal and regulatory framework. To this extent, e-money regulations have been drafted”.

“Even though the Payment System Act 2014 is in place there is need for further improvements on the legal and regulatory framework.”

He said there is need also to promote mobile money literacy among low income groups because people in the most remote areas of Lesotho don’t understand how to use mobile money.

Other problems have to do with the concentration of mobile money agents in towns and their lack of liquidity. Makhetha said there is an opportunity for Lesotho to reach the same level as Kenya and Tanzania in mobile money usage.

“For this to happen we appeal to mobile money operators to protect the system because there are people who abuse its usage. For example, pyramid schemes that are taking advantage of people,” he said.

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A 2011 survey showed that Lesotho has a very high level of access to financial products – the highest among 15 countries surveyed. The FinScope survey revealed that only 19 percent of Lesotho adults are not financially served.

This is compared to 27 percent in South Africa, 31 percent in Namibia, 33 percent in Botswana and 37 percent in Swaziland. The writers of the report on the survey were however careful not to equate access to financial products to financial inclusion.

This high level of inclusion, they said, is driven by very high usage of insurance, primarily funeral insurance (formal as well as informal), which is used by 62 percent of adults.

The survey found that 38 percent of adults have a bank account and a further 23 percent have another form of formal financial service.

This, the report said, means that 61 percent of Lesotho adults are formally included. A further 20 percent are only served by informal financial services.

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“Informal usage is very important. In total, 62.4 percent of the adult population use informal financial mechanisms, spread across informal savings, insurance and credit.’’

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Business

Take a Break from Summer

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Press release for KFC Lesotho

Date: Monday, 16 December 2024

 

Summer, what a wonderful time of year…

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When influencing gets too much

When the news cycle gets too much

When the endless queues get too much

When the shopping chaos gets too much

When the unavailable transport gets too much

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When the holiday work shifts get too much

When the lawn mowing gets too much

When the loud music gets too much

When the traffic gets too much

When the relentless schedule gets too much

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When the heatwaves get too much

When the weather warnings get too much

When the suntan lines get too much

When the ever-growing laundry pile gets too much

When the festivities get too much

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When the 2025 university applications get too much

When the guests overstaying their welcome gets too much

When the social media mayhem gets too much

When the out of sync traffic lights get too much

When the New Year resolutions get too much

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When the travel expenses get too much

When reapplying sunscreen gets too much

When the packing and unpacking gets too much

When the photo-taking gets too much

When the flies get too much

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When the pool maintenance gets too much

When the fully booked airlines get too much

When the mosquito bites get too much

When the fishing trips get too much

When the baking gets too much

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When the road trip stops get too much

When the sand in the car gets too much

When the picnic ants get too much

When the papa and morogo get too much

When the braai smoke gets too much

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When the television shows get too much

When the homemade cooking gets too much

When the hot car seats get too much

When the outdoor markets get too much

When the air-conditioning bills get too much

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When the nature hikes get too much

When the garden-watering gets too much

When the hot sidewalks get too much

When the bike rides get too much

When the late nights get too much

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When the impromptu trips get too much

When the 4×4 rides get too much

When the golf games get too much

When the ice cube trays get too much

When the late-night crickets get too much

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When the entertaining gets too much

When the bumpy boat rides get too much

When the paddleboarding gets too much

When the public pool crowds get too much

When the lack of parking gets too much

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When the summer internships get too much

When all you need is a breather

 

You have made it to the end. Take a break from summer with KFC Lesotho on Saturday, 21 December, a day to pause, refresh, and savour the start of holiday mode. Swing by KFC for a taste of summer and officially step into the holidays, recharged and ready. See you there!

 

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Discover KFC’s Summer Delights!

KFC Summer Twisters: https://www.youtube.com/watch?v=LVlAX00WROU

KFC Summer Krushers: https://www.youtube.com/watch?v=QpCn-tFYrls

KFC Summer Buckets: https://www.youtube.com/watch?v=SbiOjRR58UA

 

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End.

 

About KFC Africa

KFC has been in South Africa for over 53 years and has more than 1,300 stores across the country. The first KFC restaurant in South Africa opened in 1971 in Orange Grove, Johannesburg. KFC is the leading quick-service restaurant brand in South Africa with just under a third of market share, according to Brand Image Tracker. KFC serves more than 20 million customers a month and we work hard to ensure that no matter which of our restaurants they walk into, they will get that distinctive KFC flavour and have a great experience. KFC’s Original Recipe® Chicken was first made by Colonel Harland Sanders in 1940 when he perfected his secret recipe of 11 herbs and spices at his restaurant in Kentucky. Today, KFC is the world’s most popular chicken restaurant, still preparing our chicken with the Colonel’s secret recipe to his exact standards. Every KFC restaurant follows the same global processes and procedures to ensure that our customers get great-tasting food, every time.

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KFC Lesotho socials:

Instagram – @kfclesotho – https://www.instagram.com/kfclesotho/

Facebook – KFC Lesotho – https://www.facebook.com/LesothoKFC

X – @KFC_Lesotho – https://x.com/KFC_Lesotho

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Business

Demystifying death benefit nomination

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I recently attended a trustee training session, and it sparked a thousand of opinions and emotions to fellow trustees and principal officers.

It is remarkable how people approach their pension funds with a blend of care and chaos — carefully watching contributions grow but leaving the aftermath of their departure to luck and a roomful of trustees.

With the Pension Fund Act (PFA) 2024 in place, requiring members to fill out and update death benefit nomination forms annually, one would think the process is foolproof.

Yet, we find ourselves navigating the maze of member reluctance and the emotional minefield that comes with deciding who gets what.

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The PFA 2024 makes an elegant appeal to order, asking pension fund members to take charge of their legacy by nominating beneficiaries.

But, instead of pens gliding over forms, there is hesitation, resistance, and in some cases, outright abstinence.

What should be a simple administrative act seems to invoke existential dread or, worse, familial politics.

 

When Nomination Feels Like Negotiation

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One of the most notable trends is the discomfort married members feel at the mere suggestion of allocating 50% of their death benefit to a spouse.

For clarity, the PFA does not say they must — but logic and love might.

However, these conversations often spiral into arguments over “what ifs.”

What if the marriage does not last?

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What if the spouse uses the money “irresponsibly”?

What if leaving an equal share to children or a secret favourite nephew makes more sense?

These “what ifs” often lead to another troubling “what if”: what if no nomination is made at all?

Emotions run high.

Sometimes, the process of completing the form turns into a reflection of unresolved family tensions, where the form itself becomes a battlefield for hypothetical posthumous power plays.

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Trustees, meanwhile, are left to pick up the pieces, making discretionary decisions that almost always leave someone unhappy.

 

What the Law Actually Says

Let us address the elephant in the room.

The PFA does not dictate that anyone’s spouse, child, or distant cousin must receive a cent.

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The law requires you to nominate beneficiaries but leaves the who and how much entirely up to you.

And yet, myths persist, leaving members to believe they are bound to make obligatory allocations.

This misunderstanding is not just inconvenient; it is entirely unnecessary.

The beauty of the PFA lies in its simplicity: nominate someone — anyone — so your trustees don’t have to piece together your
wishes based on tea leaves, distant

relatives, or that one time you mentioned something in passing to a colleague.

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The Real Cost of Silence

If leaving decisions to trustees sounds romantic — think noble strangers making wise decisions — let me assure you, it’s not.

Trustees do their best with the tools they have, but without a completed nomination form, their decisions are guided by discretion rather than your explicit intentions.

And discretion, noble as it sounds, often breeds disputes.

Disgruntled beneficiaries are not just an unfortunate byproduct of silence; they are its loudest consequence.

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Without clear instructions, your death benefits might fund lawsuits instead of legacies.

Is that truly the financial wisdom you have cultivated over a lifetime of disciplined contributions?

 

Completing the Form: The Act of Taking Control

Filling out the nomination form isn’t just compliance; it is an act of empowerment.

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It’s the financial equivalent of saying, “I trust myself to make the best decisions for my loved ones.”

It’s an opportunity to assert control over your life’s earnings and ensure they benefit those you deem most deserving.

Let us put it plainly: by completing this form, you eliminate guesswork, prevent disputes, and protect your loved ones from unnecessary turmoil.

You also spare trustees from playing Solomon with your assets — a responsibility they never asked for but inherit when you opt for avoidance.

 

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It is not that deep!

For all the effort we pour into overthinking, let’s consider the alternative — actually completing the form.

You’ve already made harder decisions, like choosing between investment portfolios or deciding on your retirement age.

Writing down a name or two, alongside their allocations, is, comparatively, a walk in the park.

And for those of you abstaining because “it’s complicated,” let us reflect: is it more complicated than the potential legal battles, heartache, and chaos that might follow your departure?

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Or are we simply procrastinating because planning for death feels uncomfortably final?

 

Your Legacy, Your Way

At the heart of it all, filling out the nomination form isn’t about complying with a law or appeasing trustees.

It is about ensuring your legacy aligns with your wishes.

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It is about giving your loved ones clarity and peace of mind when they need it most.

So, grab that pen.

Fill in that form.

It might not be the most exciting thing you do today, but it could very well be the most meaningful.

After all, if you’ve spent years building a financial future, why let your final act of planning be defined by inaction?

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Teboho Makoetlane

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Business

More US funding for development projects

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MASERU-THOMAS Hines, the US Embassy’s interim head, has applauded Lesotho for passing the Millennium Challenge Corporation (MCC)’s scorecard, paving way for continued development funding.

The MCC is providing assistance to Lesotho to strengthen good governance, economic freedom and investments in the country, managed by the Millennium Challenge Account (MCA-Lesotho Compact II).

The MCC donated US$300 million (approximately M5.4 billion) for health and horticulture development.

For the country to qualify, it had to pass the MCC’s scorecards.

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Hines told Prime Minister Sam Matekane on Tuesday at the State House that the good news is that Lesotho passed, although there are some other things the country has to improve.

For this year, the passing indicators are girls’ primary education completion rate, natural resource protection, land rights and access and fiscal policy.

Indicators that slipped below the pass rate are government effectiveness and freedom of information.

“Of MCC’s 76 scorecards, only 26 countries passed while 50 did not and the good news is that Lesotho once again passed the scorecard,” Hines said.

He said not only did Lesotho pass but it has also improved from passing 15 indicators last year to 17 of 20 indicators this year.

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Hines said the accomplishment reflects Matekane and his government’s commitment to strengthening democratic governance and fostering prosperity.

“Noting the decline in control of corruption indicator, we seek avenues to do more together with Lesotho to combat corruption,” he said.

“Not only does regression in this area put Lesotho at risk of failing the scorecard we also know the corrosive impact of corruption on the economy and society.”

He said they seek to maximise the compact’s ability to ensure greater access to quality healthcare.

Matekane said the scorecards assess the government’s performance in key areas throughout the year to determine the continuing eligibility regarding MCC compact funding.

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He said last year he urged the cabinet to build on the momentum from 15 out of 20 indicators.

“Let me take this opportunity to celebrate our sustained achievement of passing 17 out of 20 indicators which is a 10 percent increase from last year,” Matekane said.

“Specifically, I committed last year to ensure that Lesotho will submit data to support the assessment of girl’s primary education completion rate,” he said.

He said he was pleased with the progress overall and on gender parity in education and they aim to achieve better results next year.

In addition to this, he said, there is still a lot of work to be done, especially around trade policy, government effectiveness and particularly the freedom of information with a notable decline from 83 percent down to 43 percent.

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“Our commitment to control and eliminate corruption remains steadfast. We are working tirelessly to expose corrupt activities, keeping the public sector honest and accountable,” he said.

“The commitment we have made of investing in our people has never wavered over the years and the government is also focused on improving access to quality health services to every Mosotho regardless of their background and location,” he said.

Moipone Makhoalinyane

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