Lesotho Competitiveness and Financial Inclusion Project

Abstract*

The project has three components that will support the Government’s efforts to expand the private sector in Lesotho. Component 1. Enhancing financial inclusion and resilience of MSMEs -- Component 1 will strengthen the delivery of efficient and reliable government-to-business (G2B) digital services to facilitate the establishment and operation of new businesses and reduce the time and cost of regulatory compliance which in turn will enhance the... Show More

Development Objective

The project development objective is to increase access to business support services and financial products targeted at MSMEs and entrepreneurs, especially women and youth.

Key Details

Project Details

Project ID
P175783
Status
Active
Team Leader
Michael Ehst
Borrower 2
Kingdom of Lesotho

Country
Lesotho
Disclosure Date
November 3, 2021
Approval Date
(as of board presentation)
June 24, 2022
Effective Date
August 30, 2022

Total Project Cost 1
US$ 52.50 million
Implementing Agency
Ministry of Trade, Industry, Business Development, and Tourism
Region
Eastern and Southern Africa
Fiscal Year 3
2022

Commitment Amount
US$ 52.50 million
Environmental Category
N/A
Environmental and Social Risk
Moderate
Closing Date
July 31, 2028

Consultant Services required
Yes
Last Stage Reached
BANK APPROVED
Last Update Date
February 6, 2024

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Environment and Natural Resource Management

FY17 - Climate change20%
- FY17 - Adaptation20%
- FY17 - Mitigation0%

FY17 - Finance

FY17 - Finance for Development18%
- FY17 - Disaster Risk Finance18%
FY17 - Financial Infrastructure and Access100%
- FY17 - Credit Infrastructure13%
- FY17 - Financial inclusion13%
- FY17 - MSME Finance100%
- FY17 - Payment & markets infrastructure18%

FY17 - Human Development and Gender

FY17 - Labor Market Policy and Programs72%
- FY17 - Labor Market Institutions33%
- FY17 - Skills Development72%

FY17 - Private Sector Development

FY17 - Enterprise Development72%
- FY17 - Entrepreneurship34%
- FY17 - Global value chains33%
- FY17 - MSME Development72%
FY17 - ICT56%
- FY17 - ICT Solutions56%

FY17 - Urban and Rural Development

FY17 - Disaster Risk Management80%
- FY17 - Flood and Drought Risk Management80%
FY17 - Rural Development33%
- FY17 - Rural Markets33%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
Global Facility for Disaster Reduction and Recovery	7.50
IDA Credit	45.00

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	N/A
IDA Commitment	45.00
IBRD + IDA Commitment	45.00

Lending Instrument
Grant Amount	7.50
Total Project Cost**	52.50

Summary Status of World Bank Financing (US$ Millions) as of April 30, 2025

No data available.

Detailed Financial Activity as of April 30, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
Oct 25, 2023	IDA-71690	Loan Disb	-1,275,000.00
Aug 1, 2023	IDA-71690	Int Charges	580.01
Aug 18, 2023	IDA-71690	Loan Disb	1,604,290.00
Dec 7, 2022	IDA-71690	Loan Disb	509,420.00
Mar 13, 2024	IDA-71690	Loan Disb	69,145.63
Mar 13, 2024	IDA-71690	Loan Disb	20,328.98
Aug 1, 2024	IDA-71690	Int Charges	17,511.70
Aug 1, 2024	IDA-71690	Int Charges	17,511.70
Aug 1, 2024	IDA-71690	Int Charges	4,177.45
Feb 1, 2024	IDA-71690	Int Charges	11,222.25
Jun 24, 2022	IDA-71690	Loan Commitment	45,000,000.00
Aug 1, 2023	IDA-71690	Int Charges	966.69
Aug 1, 2023	IDA-71690	Int Charges	1,933.36
Aug 1, 2023	IDA-71690	Int Charges	1,933.36
Aug 1, 2023	IDA-71690	Int Charges	3,173.63
Aug 2, 2023	IDA-71690	Loan Disb	79,574.08
Oct 25, 2023	IDA-71690	Loan Disb	1,275,000.00
Dec 1, 2023	IDA-71690	Loan Disb	1,275,000.00
Aug 1, 2023	IDA-71690	Int Charges	580.01
Mar 18, 2024	IDA-71690	Loan Disb	22,979.13
Aug 8, 2024	IDA-71690	Loan Disb	95,173.54
Aug 1, 2024	IDA-71690	Int Charges	29,103.65
Mar 14, 2024	IDA-71690	Loan Disb	1,422,089.50
Mar 13, 2024	IDA-71690	Loan Disb	69,145.20
Feb 1, 2024	IDA-71690	Int Charges	48.28
Feb 1, 2024	IDA-71690	Int Charges	9,245.90
Feb 1, 2024	IDA-71690	Int Charges	9,245.90

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Overall Implementation Progress (IP)	Moderately Satisfactory	2024-12-18
Progress towards achievement of PDO	Satisfactory	2024-12-18
Financial Management	Satisfactory	2024-12-18
Monitoring and Evaluation	Satisfactory	2024-12-18
Project Management	Satisfactory	2024-12-18
Procurement	Moderately Satisfactory	2024-12-18

COMPLETION RATINGS

No data available.

INDEPENDENT EVALUATION RATINGS

No data available.

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Firms benefiting from private sector initiatives Value 0.00 85.00 500.00
Date July 1, 2022 October 31, 2023 June 30, 2027
Comment
Of which are women owned Value 20.00 20.00 25.00
Date
Comment
Of which are youth owned Value 20.00 20.00 20.00
Date
Comment

Value of financing (seed funding, grants, partial credit guarantee, credit infrastructure improvements, resilience funding) accessed by enterprises through the program	Value	0.00	35574.00	16000000.00
	Date	July 1, 2022	October 31, 2023	June 30, 2027
	Comment

Of which is financing accessed by enterprises that are women-owned Value 20.00 20.00 25.00
Date
Comment
Percentage of enterprises supported by the program with increased revenue in real terms Value 20.00 20.00 60.00
Date July 1, 2022 October 31, 2023 June 30, 2027
Comment
Of which are women owned Value 25.00 25.00 50.00
Date July 1, 2022 October 31, 2023 June 30, 2028
Comment

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Percentage of enterprises supported by the entrepreneurship and SME programs with increased employment Value 25.00 25.00 50.00
Date June 30, 2022 October 31, 2023 June 30, 2028
Comment
Percent change in the number of enterprises accessing supported G2B systems Value 20.00 20.00 45.00
Date June 30, 2022 October 31, 2023 June 30, 2028
Comment

Percent of enterprises engaged with the public private dialogue platform that assess the platform as improving government responsiveness to private sector concerns	Value	60.00	60.00	80.00
	Date	June 30, 2022	October 31, 2023	June 30, 2028
	Comment

Number of startups and innovative SMEs supported through entrepreneurship hub support programs Value 0.00 50.00 500.00
Date July 1, 2022 October 31, 2023 June 30, 2028
Comment
Percentage of women-owned enterprises recorded as being creditworthy in the credit bureau Value 27.00 27.00 40.00
Date March 15, 2022 October 31, 2023 June 30, 2028
Comment
Number of additional enterprises covered by the partial credit guarantee (PCG) scheme Value 0.00 0.00 250.00
Date July 1, 2022 October 31, 2023 June 30, 2028
Comment
Of Which are Women-Owned Value 0.00 22.00 225.00
Date July 15, 2022 October 31, 2023 June 30, 2028
Comment
Number of enterprises accessing early-stage finance Value 0.00 0.00 50.00
Date June 30, 2022 October 31, 2023 June 30, 2028
Comment
Number of MSMEs registered for coverage in MSME Resilience Fund database Value 0.00 0.00 15000.00
Date July 1, 2022 October 31, 2023 June 30, 2028
Comment
Number of entrepreneurship hub and LEAP program supported enterprises that adopted new digital technologies Value 0.00 0.00 300.00
Date June 30, 2022 October 31, 2023 June 30, 2028
Comment
Value of potential payouts to MSMEs from private capital mobilized for climate resilience Value 0.00 0.00 12000000.00
Date July 15, 2022 October 31, 2023 June 30, 2028
Comment
Number of LEAP fund supported enterprises with 25% or greater increase in revenues one year after grant support Value 0.00 0.00 250.00
Date July 1, 2022 October 31, 2023 June 30, 2028
Comment
Number of supported enterprises in targeted value chains with increased value of exports Value 0.00 0.00 50.00
Date July 1, 2022 October 31, 2023 June 30, 2028
Comment

Of which is financing accessed by enterprises that are women-owned	Value	20.00	20.00	25.00
	Date
	Comment

Of which are women owned	Value	25.00	25.00	50.00
	Date	July 1, 2022	October 31, 2023	June 30, 2028
	Comment

Percentage of women-owned enterprises recorded as being creditworthy in the credit bureau	Value	27.00	27.00	40.00
	Date	March 15, 2022	October 31, 2023	June 30, 2028
	Comment

Of Which are Women-Owned	Value	0.00	22.00	225.00
	Date	July 15, 2022	October 31, 2023	June 30, 2028
	Comment

Lesotho Competitiveness and Financial Inclusion Project

Abstract*

Development Objective

Key Details

Project Details

Sectors

Themes

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Project Map

Finances

Financing Plan (US$ Millions)

Total Project Financing (US$ Millions)

Summary Status of World Bank Financing (US$ Millions) as of April 30, 2025

Detailed Financial Activity as of April 30, 2025

Ratings

IMPLEMENTATION RATINGS

COMPLETION RATINGS

INDEPENDENT EVALUATION RATINGS

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INTERMEDIATE RESULTS INDICATORS