Background

Access to formal and semiformal financial services in Lesotho is limited, especially for low-income and rural populations. With only 13 percent of urban adults and only 7 percent of rural adults accessing credit from formal banks, the great majority of Basotho are excluded from the formal credit system. Limited accessibility and high pricing of banking products further limit customer’s affordability and usage. The Government of Lesotho has identified the current lack in access to finance as a major constraint to employment creation and income generation, especially among the rural population. Increase of access to finance, is therefore prioritized in the National Strategic Development Plan (NSDP) and the Financial Sector Development Strategy (FSDS) as a strategic conduit to generating inclusive economic growth.

In line with Government priorities, the Ministry of Finance (MoF) the Central Bank of Lesotho (CBL) and UNDP developed the Lesotho Scaling Inclusion through Mobile Money (SIMM) project that aims to catalyze inclusive and pro-poor growth by scaling up formal and semiformal financial services for low-income people and rural customers in Lesotho through mobile money. Mobile money can be used as a channel to offer innovative and low-cost credit, savings and insurance products and significantly reduce the costs of transferring money compared to traditional forms of money transfer. As part of preparations for the Lesotho SIMM Project, UNDP conducted an analysis and scoping study of the mobile money sector in Lesotho in March 2016 and identified systemic problems in the enabling business environment (ecosystem challenges) that are preventing the sector from catering financial inclusion products to low-income people and rural customers. Based on this, four (4) ecosystem solutions pillars that could be leveraged to enhance inclusive finance were identified:

  • Awareness;
  • Acceptance;
  • Availability;and
  • Affordability of mobile financial services.

The project will contribute to improvement of the national indicators on employment creation and economic development by facilitating dialogue, increasing advocacy and knowledge, and investment for inclusive finance. The Lesotho SIMM project seeks to mobilize adoption of mobile technology for improved access to finance for low income stakeholders, thus also improving household, government and business financial management through innovations and financial solutions. This is further expected to improve interaction of the unbanked with formal financial services, specifically banks, thereby improving options for access to savings, credit and insurance through a formal channel.

The project will be implemented in accordance with the principles of UNDP’s inclusive business diamond framework, entailing establishing an ecosystem for the provision of information, investment, incentives and implementation support for inclusive finance in Lesotho. The Lesotho ‘Scaling Inclusion through Mobile Money’ (Lesotho SIMM) project, is one of the three pilot projects in Africa initiated by the UNDP Regional Service Center for Africa to strengthen the development of Inclusive Business Ecosystem Initiatives (IBEI) in Lesotho, Uganda and Senegal. Project is implemented through a collaborative stakeholder platform called ‘Lesotho SIMM Platform’.

Duties and Responsibilities

Specifically, the consultant is expected to deliver the following:

  • Carry out an evidence-based cost-benefit analysis for introduction of cashless payments and revenue collection for the Government of Lesotho;
  • Understand existing current payments and revenue collection for the Government of Lesotho, and develop a classification of stakeholders and beneficiaries. Based on this, also determine extend to use or none, of other payment and collection mechanisms other than cash.;
  • Establish proportion of expenditure to total payments (social transfers) made by the government of Lesotho, and develop a comparative analysis, in the case of adoption of payment mechanisms;
  • In consultation with the Ministry of Finance, Central Bank of Lesotho and other relevant government or non-government stakeholders, identify legal, regulatory and policy frameworks governing payment and collection of revenue for government;
  • Identify legal frameworks and practices that may prohibit adoption of alternative payments mechanisms;
  • Determine technical and technological requirements to promoting cashless payment systems, taking into consideration the different population and stakeholder groups using government services and recipients for social transfers;
  • Identify best practice for promoting G2P and P2G and develop a criteria and prioritization framework for introduction of cashless payment systems for government payments and revenue collection.

Competencies

  • Excellent communication, reporting, and presentation skills;
  • Demonstrate a high competency for integration of gender attributes into the assignment;
  • Good analytical skills, with ability to come up with solutions to complex in interconnected development challenges.

Required Skills and Experience

Education:

  • A Masters’ Degree in Economics, Banking, Development Studies or any other relevant field.

Experience:

  • A minimum of 10 years’ experience in entrepreneurship development, rural development, inclusive finance (inclusive business) or private sector development;
  • Proven experience with inclusive business models, private sector development, policy analysis and research;
  • Knowledge of financial inclusion, mobile money and technology for financial services will be an added advantage
  • Knowledge of the Lesotho financial and private sector will be an added advantage;
  • Sound knowledge of the Sustainable Development Goals, Agenda 20163 and related principles for inclusion and poverty eradication livelihood development is an added advantage;
  • Proven experience in research for development.

Language:

  • Fluent in English.

Application procedure: