Share these talks and lectures with your colleagues
Invite colleaguesCase study
The national payment system in Lesotho, 2000–2016
Journal of Payments Strategy & Systems,
12
(1),
74-88
(2018)
Abstract
Prior to 2000, the payment, clearing and settlement system in Lesotho relied upon manual processes. To address this, a programme to modernise the system and provide better support for the circulation of funds in the economy was initiated. The initiative, which ran between 2000 and 2015, revolutionised the country’s payment, clearing and settlement system. Lesotho now boasts an efficient and safe payment, clearing and settlement system that supports monetary policy and fosters financial stability and financial inclusion, along with other economic benefits. The work, however, is not over. Due to the changing needs and emerging challenges within the country, the modernisation of the payment, clearing and settlement system is an ongoing process. Furthermore, it is necessary for the system to align with regional and international standards in order to facilitate international trade and investment. Likewise, it is essential to keep the legal and regulatory framework up to date in order to respond to the rapid changes in financial technology and innovation, as well as to avoid regulatory arbitrage.
Keywords: Lesotho; payment; clearing and settlement systems; mobile money; remittances
The full article is available to subscribers to the journal.
Author's Biography
Lira Peter Sekantsi is a senior analyst and section head of National Payment System Oversight and Risk Management at the Central Bank of Lesotho. He is also a part-time lecturer at the Institute of Extra-Mural Studies, National University of Lesotho. He holds an MA in economics and finance from Leeds University Business School. His research interests include market volatilities, monetary and fiscal policies, and energy economics as well as payment systems. His work has been published in the Review of Economic and Business Studies, Energy Sources, Part B: Economics, Planning and Policy, European Journal of Economics and Management, Journal of Payment Strategy and Systems and International Journal of Sustainable Economy.
Motheo Ernest Lechesa is Head of the National Payment System Division at the Central Bank of Lesotho. His previous roles have included working as a senior financial accountant and internal auditor at the same institution, and also as a senior accountant in the Treasury Department of the Lesotho Ministry of Finance. He holds a bachelor of commerce (honours), information systems — business processes management and enterprise systems from the University of Cape Town and a Chartered Accounting Certificate from the Centre for Accounting Studies in Lesotho.
