Moroke Sekoboto
Rising unemployment coupled with surging inflationary pressure require citizens who are well-equipped with personal financial management skills and understand the benefits and risks associated with money.
This is according to the Governor of the Central Bank of Lesotho (CBL), Dr Maluke Letete, who added the financial industry had witnessed a variety of products and services, as well as trends in technology and digitalisation that exposed consumers to online fraud and digital security risk.
Addressing the 2023 Money Month Lesotho campaign wrap-up meeting in Maseru on Tuesday, Dr Letete said transacting through new digital channels could lead to consumers “making impulsive financial decisions” given the speed to access products and services.
Dubbed ‘Plan Your Money, Plant Your Future’, the 2023 Money Month Lesotho campaign took place from 27 April- 27 May 2023 and was launched in Butha-Buthe to encourage Basotho to invest in their future. The campaign placed emphasis on the importance of financial education and literacy, which equips consumers with knowledge of their financial rights, facilitates access to finance and develops their personal financial management skills.
“The exposure caused by advancement in technology can undermine the financial resilience and well-being of consumers due to direct financial losses and loss of trust in the financial sector. New players like FinTech and products like Crypto-assets that have entered the markets, sometimes operating on a cross-border basis, have influenced the importance of financial education,” Dr Letete said.
“We are witnessing a rapid growth of new methods of payment, investment and accessing credit. Transacting through new digital channels may lead some financial consumers to make impulsive financial decisions given the speed to access to financial products and services.
“This may have serious consequences such as greater indebtedness, and these have potential damage to trust and confidence in digital financial services, financial systems and technological innovation.”
The CBL governor further lauded members of the Financial Education Steering Committee (FESC) for their commitment. The committee’s dedication, passion and sacrifice should be applauded as they had resulted “in our industry’s engagement with about 354 263 people through virtual and physical interactions”, the CBL governor added.
“Our theme underlined the importance of planning by making prudent and well-informed financial decisions. Thus, it prompted citizens to own the responsibility of securing their financial future today,” Dr Letete said.
“The active participation, particularly of those living in remote and hard-to-reach areas, is a clear testimony that every Mosotho deserves the opportunity to not only know about the available products and services, but how to access and effectively use them for their benefit and those around them.”
For his part, FESC chairperson Ephraim Moremoholo emphasised the importance of educating the youths about the benefits of saving and investing money for the future.
“This 2023 Money Month Lesotho campaign is a joint initiative between the financial sector and insurance service-providers to educate and equip the public with the necessary skills to manage money,” Mr Moremoholo said.
“Our target audience was the media, youth, school-learners, the public, people with disability, public servants, security personnel, women associations, youths in business and street vendors.
“We reached 346 289 people through virtual platforms, 1060 face-to-face interactions with individuals, 1215 members of civil society organisations and 5700 youths.”
The FESC chairperson added active participation of the industry resulted in strong collaborations with the committee and key stakeholders.
“Increased participation in the form of contribution reduced the cost of implementing the campaign. Coordination is key to addressing the challenges hindering progress in the implementation of Financial Education,” he said.
The FESC, Mr Moremoholo said in conclusion, was finalising a draft of the National Strategy for Financial Education 2023-2028 and would consult and seek contribution from the industry and strategic stakeholders upon completion in the last quarter of 2023.
