The government has launched a M68 million Climate Resilience and Preparedness Support Facility to help MSMEs withstand droughts, floods and heavy snowfall while protecting jobs and livelihoods.
The government has launched a M68 million Climate Resilience and Preparedness Support Facility. The facility, funded through the World Bank backed CAFI Project, will help Micro, Small and Medium Enterprises invest in measures against droughts, floods and heavy snowfall.
Minister of Trade, Industry and Business Development Mr Motlatsi Maqelepo said the priority is to protect businesses and the jobs they create. When businesses are affected by climate shocks, families lose income. The facility will help enterprises safeguard their investments, remain operational and become more resilient.
How the facility supports MSMEs
Under the programme the government will finance up to 80 percent of the cost of approved climate resilience investments. Participating businesses will contribute the remaining 20 percent.
MSMEs form the backbone of Lesotho’s economy but remain among the most vulnerable to climate-related disasters. These events can damage infrastructure, destroy stock, kill livestock and interrupt business operations.
| Funding source | Share of approved costs |
|---|---|
| Government (via CAFI) | Up to 80% |
| Participating business | 20% |
Part of broader CAFI strategy to strengthen private sector
CAFI Project Managing Director Mr Chaba Mokuku said the facility forms part of a broader strategy built on three pillars: creating a level playing field for businesses, simplifying company registration and licensing processes, and improving trade through a single window system.
CAFI is also expanding online government services and working with the National University of Lesotho and the Ministry of Agriculture to build skills that support private sector growth. The long-term objective is a competitive and sustainable economy driven by a resilient private sector capable of creating more jobs.
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.
