Rédaction Africa Links 24 with Lesotho Times
Published on 2024-03-20 20:56:26
The Central Bank of Lesotho (CBL) has taken a significant step towards promoting financial inclusion and reducing dependence on South Africa’s payment system by launching a national payment switch called Leswitch. This move is aimed at joining the fast-evolving payments landscape and ensuring that all electronic transactions are streamlined and processed efficiently.
The launch of Leswitch took place at the Lehakoe Recreational and Cultural Centre in Maseru. CBL’s First Deputy Governor, Lehlomela Mohapi, shared that the idea for this system was conceived back in 2018 and despite facing challenges due to the Covid-19 pandemic, they are thrilled to finally introduce it to the public. The national payment switch will allow financial services consumers to seamlessly send and withdraw funds across different providers’ platforms.
Mr. Mohapi emphasized that Lesotho’s new payment system will enable various mobile money issuers to interact smoothly, ensuring that domestic payments are initiated, cleared, and finalized within the country. Additionally, CBL Governor, Maluke Letete, mentioned that although existing systems like the Lesotho Wire System and Automated Clearing House were in place, they lacked interoperability between banks, microfinance institutions, and mobile money operators.
The absence of interoperability between payment service providers posed a challenge for the people of Lesotho, despite having a thriving mobile money sector with services from Econet EcoCash, Vodacom’s M-Pesa, and C-Pay. Without its own national payment switch, Lesotho was reliant on South Africa’s electronic payment regulations, which presented its own set of difficulties, as noted by Dr. Letete.
However, with the introduction of Leswitch, the country aims to overcome these challenges and enhance financial liberation and inclusion while addressing concerns related to money laundering and cyber-attacks. Lesole Polilane from Chaperone Ltd. expressed excitement about the new system, highlighting its potential to empower individuals and bridge the gap between the banked and unbanked populations.
By fostering collaboration among mobile money issuers, the national payment switch creates an environment conducive to innovation and growth, providing not only convenience but also opportunities for financial empowerment. This milestone marks a significant step forward in Lesotho’s journey towards ensuring that everyone, regardless of their socioeconomic status, has access to the financial tools and services needed to thrive.
In conclusion, the launch of Leswitch by the Central Bank of Lesotho signifies a bold move towards modernizing and revolutionizing the country’s payment system, ultimately driving financial inclusion and independence within the nation.
Read the original article on Lesotho Times
