In Lesotho, an Economic Inclusion Initiative is Providing Hope and Jobs to the Most Vulnerable

Lesotho faces persistent high poverty rates, with many social safety net beneficiaries remaining trapped in economic vulnerability. An Economic Inclusion Program (EIP) seeks to break this cycle by providing a structured, multi-faceted approach that enables participants to combine social assistance with economic inclusion activities. Through training, productive grants, coaching, and market linkages, the program ensures that beneficiaries are equipped with the tools needed to build sustainable livelihoods.

In the city of Mafeteng, 76 kilometers away from Maseru, the capital city of Lesotho, Mme Ramolahloane says she now identifies as a “proper” businesswoman. A denizen of the village of Ts’akholo, in the Metsi-Maholo Community Council, she has received six months of training under the EIP, an initiative from the Government of Lesotho in partnership with the World Bank through which she and other participants were taught in financial literacy and personal initiative.

When invited to develop a business proposal, she knew right away what she wanted to do: set up a poultry business, an easy choice given her understanding of the community she resides in. Thanks to a one-off productive grant of M5,000 ($268) that she received through the World Bank Pathways to Sustainable Livelihoods Project (PSLP), which supports the EIP, she envisioned raising broilers, an idea she saw as her path to financial freedom.

“I am not new to business, having tried my hand in several endeavors such as selling cooked food. However, having undergone training and being part of a network of like-minded women, I feel much more equipped to handle my new business,” she explains. She believes that, by building a successful business, she can provide the best foundation for her three children to grow and flourish as they become adults. Having understood the seasonality of different markets through the training she received, she intends to diversify her businesses going forward.  

Twenty-one-year-old Kekeletso Mantsi has been able to expand her business through the same grant. As a seamstress, she used the money to purchase a sewing machine thanks to which she has ramped up her production from one to two garments a day. The price of her garments ranges from M300 ($15) to M1,000 ($53). “The grant enabled me to purchase a multifunctional machine, reducing the time required to complete my garments,” she says. “Additionally, having never received any formal training in business, the training has honed my business acumen, and the purchase of the machine is a game changer for my business.”

The EIP is designed to improve the efficiency and equity of social assistance programs across Lesotho while assisting poor families. The program helps the vulnerable overcome barriers to accessing capital, skills, and markets. This can help improve livelihoods by increasing household incomes and empowering women and youth.

Through the PLSP, the Ministry of Gender, Youth, and Social Development has bolstered social protection delivery systems and sped up the digitalization of social safety net benefits. While social safety nets such as the Child Grants Program (CGP) and Public Assistance (PA) play a vital role, many households still struggle to move beyond subsistence. The EIP complements existing consumption support with interventions designed to promote economic empowerment to unlock the full potential of poor and vulnerable Basotho living in rural areas.

Economic Inclusion Program progress by numbers (to date)

Among the first cohort of 2,500 beneficiaries:

• 2,171 have completed at least 10 out of 12 training sessions, of whom 63% are women and 47% are youths between the ages of 18 and 35.
• As the PSLP aims to create a more inclusive and resilient society where everyone can thrive, 10% of these 2,171 participants are people with disabilities.
• To date, 2,100 beneficiaries have had their business plans approved, and 1,647 of them have received their productive grants.

A second cohort of 2,500 beneficiaries is being onboarded.

While the program’s design builds on evidence from similar projects implemented in more than 37 countries, an impact evaluation will be conducted to understand its efficiency, cost effectiveness, and sustainability. By integrating social protection with economic empowerment, the PSLP addresses the immediate needs of vulnerable Basotho while laying the foundations for long-term resilience and self-sufficiency.