CBL, NUL deepen financial literacy drive

…as they launch Personal Finance Management Programme

Moroke Sekoboto

THE Central Bank of Lesotho (CBL) and the National University of Lesotho (NUL) have intensified efforts to tackle high levels of over-indebtedness among salaried employees through the launch of a Personal Finance Management Programme.

Speaking at the launch of the Certificate Programme in Personal Finance Management at Lehakoe Cultural and Recreation Centre this week, CBL Governor, Dr Maluke Letete, described the partnership as a critical milestone in strengthening the country’s financial resilience.

Dr Letete said the programme was developed in response to widespread over-indebtedness and low levels of financial literacy among Basotho.

He said the bank launched a nationwide financial education campaign in 2022 targeting salaried employees, including government workers, teachers, healthcare practitioners and members of the security sector.

While acknowledging progress made through the campaign, Dr Letete said significant gaps remained.

“At the centre of this high indebtedness are low levels of financial literacy, together with personal attitudes and behaviours towards money management. Hence, the bank initiated the process of developing this certificate programme so that our people can be empowered,” Dr Letete said.

He said the certificate programme complements several initiatives already being implemented by the CBL and the financial sector to improve financial literacy in the country.

“The CBL, in collaboration with the Ministry of Education and Training, has already started the process of integrating financial education into the school curriculum.

“The focus is to start giving children financial education from an early age so that when they complete secondary school they can navigate the financial landscape with ease. The entire high school curriculum has been integrated and work is ongoing for primary classes,” Dr Letete said.

He added that the bank also continues to run its annual Money Month campaign, a global initiative aimed at promoting financial education.

“In Lesotho, the campaign is usually conducted over several months because of the country’s difficult terrain,” he said.

Dr Letete noted that households had been subjected to repeated economic shocks in recent years, including the impact of the Russia-Ukraine war, the COVID-19 pandemic, rising fuel prices linked to the recent US-Iran conflict and job losses resulting from United States tariffs.

“Hence, it is imperative that households have the necessary tools to enhance the resilience of their balance sheets. Financial education is one such tool,” he said.

He said the Organisation for Economic Co-operation and Development (OECD) and its International Network on Financial Education recognise financial literacy as a core life skill essential for empowering individuals, strengthening households and supporting the broader financial well-being of society.

According to Dr Letete, policymakers and regulatory authorities had a responsibility to develop policies and programmes that enable individuals to make informed financial decisions, exercise greater control over their finances and build confidence in managing money.

He said the bank continued to align its efforts with regional, continental and global initiatives while working with various stakeholders to advance financial literacy and empower Basotho to make sound financial decisions.

For his part, NUL Vice-Chancellor, Professor Isaac Olusila Fajana, welcomed the partnership, describing it as a transformative alliance between the two institutions.

Prof Fajana said the certificate programme was a response to the country’s pressing need for improved financial management.

“For NUL, this is more than an addition to our academic programmes. It represents our fundamental purpose of transforming lives and engineering solutions to the socio-economic challenges confronting the nation,” Prof Fajana said.

“Today we are doing something very simple but very powerful. When we talk about money, we are not talking about figures, but about the survival of the people. When money is managed well, children go to school and businesses are started. When it is managed poorly, stress grows. Financial literacy is about peace of mind and progress. The country needs people who plan, save, invest and borrow wisely.”

Prof Fajana said NUL responded swiftly when the Central Bank approached the institution to help address over-indebtedness among the country’s workforce.

“We deployed our finest intellectual resources from the Department of Economics under the Dean of Social Sciences, Professor Regina Thetsane, to move efficiently from conceptual design to programme delivery. Our administrative and academic leadership acted swiftly because we understand the toll that economic stress takes on the people,” he said.

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