Financial literacy training and financial inclusion in Lesotho

Abstract

Financial inclusion has taken centre stage in the development agenda in the 21st century. This was widely noticed after the global economic meltdown in 2008 where multinational companies faced bankruptcy and many people were negatively impacted.

Financial inclusion is defined as being the state in which all people have access to appropriate and desired financial products and services. It is believed to be a key component of the financial sector and has been hailed by its proponents to be a positive driver of economic growth and poverty reduction.

Financial inclusion is anchored on one pivotal concept which is financial literacy, or the ability of individuals to use knowledge and skills gained from financial education for betterment of their lives.

The significance of financial inclusion has been acknowledged by many countries and Lesotho is no exception. The Support to Financial Inclusion in Lesotho (SUFIL) project was implemented with the aim of improving financial inclusion in Lesotho. This research was undertaken to ascertain the extent to which the SUFIL has achieved its aims and objectives.

Overall, while there are some areas that require review or improvement, the project has had a positive impact in improving financial inclusion in Lesotho.