Lesotho is currently undergoing a reform of their secured transactions law, but there is no finalised draft law yet. There is a project, called the Private Sector Competitiveness and Diversification Project, which is assisting the Central Bank of Lesotho in finalising this reform. The objective of the new law is to allow movable assets, particularly intangibles to be the subject of security interests. Currently, only fixed assets and immovables are allowed to be used as security for performance of an obligation. The objective of the new law is to improve access to credit, and eventually create more jobs, since many young people or small businesses in need of finance do not have immovable assets, and it is therefore thought that they cannot access finance. This project also envisages a unified online registry. Moreover, the lack of credit scores and records for borrowers has resulted in much confusion in the financial sector. It is intended that this issue would be resolved by the implementation of a Central Credit Bureau. According to the Central Bank of Lesotho, the bill is being finalized and project appears to be close to completion.
Last Checked October 2020
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