MICROCAPITAL BRIEF: World Bank Providing $52m to Lesotho to Boost Financial Access, Resilience of MSMEs - Especially Women-, Youth-owned Enterprises

The World Bank recently issued a USD 45 million loan to the government of the Kingdom of Lesotho, supported by a USD 7.5 million grant from the World Bank’s Global Risk Financing Facility. The purpose of the project is to: (1) provide “business support services and financial products” to 500 micro-, small and medium-sized enterprises (MSMEs), of which half are to women-owned and a quarter are to be youth-owned; and (2) extend insurance to 15,000 MSMEs.

Dr Thabiso Molapo, Honorable Minister of Trade and Industry for Lesotho, stated, “This project will provide a timely boost to these enterprises through a digitalization of government-to-business services; improved access to finance, especially for women and youth owned enterprises; a strengthened entrepreneurship ecosystem; and improved… participation in horticulture and apparel value chains.”

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2021, it has 189 member nations. The group encompasses: (1) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (2) International Finance Corporation; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During the 12 months ending June 2021, the World Bank Group disbursed funds totaling USD 60.6 billion.

By Sheen Gupta, Research Associate

Sources and Additional Resources

World Bank press release
https://www.worldbank.org/en/news/press-release/2022/06/28/-world-bank-approves-45-million-to-support-entrepreneurship-and-women-and-youth-owned-smes-in-lesotho

World Bank homepage
https://www.worldbank.org

World Bank annual report
https://www.worldbank.org/en/about/annual-report#anchor-annual

Previous MicroCapital article on World Bank
https://www.microcapital.org/microcapital-brief-georgia-seeks-to-ease-msmes-adjustment-to-covid-19-with-world-bank-funding-for-fintech-loan-guarantees-grants/

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