The Ministry of Trade, Industry, and Business Development urged Micro, Small and Medium Enterprises (MSMEs) to strengthen their preparedness against climate change and other disasters to ensure business continuity and job creation.
CAFI Public Relations Manager Ms. Lihaelo Nkaota said the Government, through the Competitiveness and Financial Inclusion (CAFI), had launched a M68 million project on July 15 2026 aimed at supporting businesses vulnerable to climate-related disasters.
Ms. Nkaota said the initiative was introduced partly in response to the high levels of unemployment, particularly among young people, adding that the Government recognized the challenges faced by businesses as a result of climate change.
She said the project was intended to ensure that businesses continued operating and growing even when affected by disasters such as drought, heavy rains, strong winds and snow.
‘If a business is located in an area affected by drought and the owner is a vegetable producer, the business may require a water tank to ensure that agricultural production is not disrupted,” she said.
Ms. Nkaota said businesses seeking assistance under the programme must be legally registered with the Ministry of Trade, Industry, Business Development and the Ministry of Tourism, Sports, Arts and Culture.
She said all districts were covered by the initiative and encouraged eligible businesses to apply, stressing that the ultimate goal was to strengthen businesses so they could grow and create more employment opportunities for Basotho.
MSMEs Resilience Program Coordinator, Mr. Molehe Mokone said the M68 million fund was intended to help the Government respond to unemployment by supporting entrepreneurs and enabling businesses to remain operational when faced with disasters.
He said businesses applying for support should be legally registered and, where applicable, hold the necessary licences, adding that they should also have a valid tax clearance certificate.
“The most important thing is that the Government is making an intervention to support entrepreneurs. The Government will contribute 80 percent, while the entrepreneur is expected to contribute 20 percent,” he said.
He said all legally registered businesses are encouraged to apply, pointing out that agricultural businesses were expected to benefit significantly because of their vulnerability to climate-related disasters.
He said the fund could provide support of up to US$50,000, depending on the needs of the business and the approved intervention.
Mr. Mokone said applicants would be required to obtain three quotations from suppliers based in Lesotho for the equipment or services they needed, after which CAFI would pay its 80 percent contribution directly.
He explained that the type of assistance would depend on the vulnerability of each business.
“If your business is located in an area that is affected by flooding, we can assist with measures such as constructing a wall to prevent water from reaching the business premises,” he said.
He added that businesses could also receive support to protect their stock from moisture and other climate-related damage, including the installation of appropriate storage racks.
Mr. Mokone said Lesotho experiences severe drought, heavy rains, strong winds and snowfall, all of which can affect different types of businesses.
He noted that livestock businesses were particularly vulnerable to extreme weather conditions, while snow could affect tourism-related businesses such as hotels and guest houses.
He said falling electricity poles and other infrastructure damage caused by severe weather could also disrupt business operations.
Mr. Mokone said there is currently no deadline for applications, encouraging Basotho entrepreneurs whose businesses are vulnerable to climate change or other disasters to submit their applications.
He stressed that the initiative is not a competition and that eligible businesses will be supported once their applications are assessed and found to meet the requirements.
The initiative forms part of Government efforts to strengthen the resilience of MSMEs, ensure business continuity and create employment opportunities through sustainable business growth.
Distributed by APO Group on behalf of Government of Lesotho.
