Lesotho’s banking system consists of the Central Bank of Lesotho (CBL) and commercial banks.  The CBL is responsible for management of the country’s foreign exchange reserves, administration of exchange controls, and regulation of financial institutions.  The banking system in Lesotho is dominated by three South African banks:

• Standard Lesotho Bank
• Nedbank Lesotho
• First National Bank Lesotho

All banks offer a comprehensive range of products and services through branch and electronic banking infrastructures.  E -commerce is still a new concept in Lesotho; the Ministry of Communications has developed proposals for electronic commerce to be more widely developed, and e-commerce legislation is being drafted. In 2004, Lesotho Postbank was established as a publicly owned bank.  The bank has branches throughout the country. Although, it is gaining market share, Postbank is still overshadowed by the South African banks.    

Individuals can open local currency accounts with any bank.  The bank requires an individual’s identity document and proof of residential address to open an account.  For businesses, the bank requires an application letter with the specimen signatures of the signatories to the account.  Through Lesotho’s membership in the Common Monetary Area, the central bank does not give directions on interest rates, exchange rate margins, or the spread of services offered and the branch network. This creates a low political risk environment for banking investment. According to the International Monetary Fund (IMF), Lesotho’s banks are currently well capitalized, and are viewed to be relatively stable.

The most used methods of payment in Lesotho are:

• Cash
• Direct Bank Transfers
• Credit cards
• Checks
• Letters of Credit (LC)
• Sales on Consignment
• International Monetary Transfers

For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide 

For more information on the banking system please read the section Capital Markets and Portfolio Investment of the Investment Climate Statement.