By Seabata Mahao
Lesotho Post Bank has announced a wide-ranging package of agriculture loans designed to meet the financial needs of both smallholder and commercial farmers, to strengthen food security and support agribusiness growth across the country.
Speaking to Seahlolo, Lebona Leokaoke, Relationship Manager for Agriculture at PostBank, explained that the initiative is about more than just credit.
“We aim to help farmers access every product in any amount they need, provided they can afford to repay the loans. Affordability is assessed through the farmer’s income sources and how active their operations are,” Leokaoke explained.
The bank’s Agricultural Division, which operates alongside its Business Banking unit, focuses exclusively on agricultural enterprises and offers tailored solutions that range from animal production, crop farming, poultry, wool and mohair trading and livestock fattening.
One of the standout offerings is Tractor Finance, which falls under a government subsidy scheme covering up to 30% of the purchase cost.
Leokaoke emphasised that the bank supports all types of farmers, whether they are just starting out or already established with secondary income streams.
“Even if someone is producing goods like sand or engaging in related activities, we are willing to assess and assist based on their business,” he said.
To ensure accountability and flexibility, farmers are required to open dedicated bank accounts for their agricultural ventures.
This, he said, allows the Bank to design repayment schedules that align with farming seasons.
“For example, livestock farmers who sell twice a year can have their loan repayments timed accordingly.
“Risk management also plays a critical role in the loan process. Farmers must have their assets insured, while the bank conducts thorough checks on repayment histories. If there are defaults, we need to verify the cause, whether it lies with the individual or the company they work with,” Leokaoke explained.
In addition to its loan services, Lesotho Post Bank is conducting a nationwide outreach through radio programmes, newspapers, and community forums, making sure that farmers across Lesotho are informed of the opportunities available, the end goal, ensuring access to funding for improve agriculture and sustaible food security.
The loan portfolio covers a broad spectrum of needs:
- Tractor Finance, offered under an MoU with the Ministries of Agriculture and Finance.
- Animal Fattening Loans, for farmers rearing pigs, cattle, and goats.
- Crop Production Loans, targeting smallholder and large-scale vegetable growers.
- Poultry Loans, supporting both layers and broiler production.
- Wool and Mohair Loans, crafted for commercial producers in the fibre industry.
- Short and Long-Term Agribusiness Loans, for fixed asset acquisition and production expansion.
“Through these products, the bank hopes to create a stronger, more sustainable agricultural sector. We are not just giving loans; we are investing in the people who feed our nation.”
Farmers interested in these services are encouraged to visit their nearest Lesotho Post Bank branch or attend community forums where representatives regularly provide guidance.
