The Government of Lesotho has reinforced its commitment to improving food security through the extension of the Lesotho Post Bank (LPB) Credit Guarantee Facility (CGF). The agreement was signed between the Ministry of Finance and Development Planning (MoFDP), the Ministry of Agriculture and Food Security (MoAFS), and LPB.
Valued at M200 million, the CGF Memorandum of Understanding (MoU) focuses on financing tractors, farm machinery, equipment, and related accessories. The signing ceremony took place in the presence of Prime Minister Ntsokoane Matekane, Cabinet Ministers, and members of the media.
As the Guarantor, Minister of Finance and Development Planning Dr. Rets’elisitsoe Matlanyane highlighted the importance of agriculture as the economic backbone of the country. She said agriculture remains central to reducing poverty and hunger. Through this extended MoU, at least 500 farmers across Lesotho will be able to access modern farming equipment with a 30 percent government subsidy when obtaining funds through LPB.
“With this money, government wishes to enhance its targeted goals of prioritising agriculture,” Dr. Matlanyane said.
Minister of Agriculture and Food Security Thabo Mofosi also spoke at the signing, emphasizing the Ministry’s ongoing support to farmers through Extension Officers who will ensure proper use of the financed equipment. He commended farmers for maintaining strong repayment records with LPB, despite the financial pressures and challenges posed by climate change.
The Credit Guarantee Facility aims to make agricultural mechanisation more accessible, reduce production costs, and increase efficiency among small and medium-scale farmers. By providing affordable financing and shared risk mechanisms, the initiative seeks to boost productivity, improve livelihoods, and strengthen Lesotho’s agricultural resilience.
The government views this partnership as a key step toward achieving sustainable food production and reducing dependency on imported food. Through this M200 million investment, Lesotho continues to empower farmers, support rural development, and ensure the agricultural sector drives inclusive economic growth.
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