In a bold move to put young Basotho at the forefront of agricultural transformation, the Government of Lesotho has committed that 40 percent of its new tractor subsidy scheme will go directly to youth farmers.
Out of the 500 tractors to be acquired under the Credit Guarantee Facility for Tractors and Farm Equipment, 200 will be reserved for young people eager to enter into commercial farming.
This landmark initiative was unveiled this month by Prime Minister Ntsokoane Matekane during the Memorandum of Understanding signing ceremony between the Ministry of Finance and Development Planning, the Ministry of Agriculture, Food Security and Nutrition and the Lesotho PostBank.
The signing marked the extension of the Lesotho PostBank Credit Guarantee Facility, which will run for five years, offering accessible financing for tractors, farm machinery and equipment.
It was revealed that the Ministry of Finance would act as guarantor, ensuring that even smallholder and emerging farmers can access modern machinery to boost productivity.
Under the new agreement, government would inject M200 million into the scheme. Farmers will not be required to pay the deposit to qualify for this subsidy.
Of this amount, M175 million would fund the subsidy component, while M25 million, inclusive of taxes, would strengthen the Guarantee Fund that supports PostBank’s on-lending to farmers.
“Farmers who qualify will receive a 30 percent subsidy on the cost of tractors and related equipment,” Mokhachane Mopeli, the Managing Director of Lesotho PostBank explained, noting the subsidy applies to every eligible Basotho farmer who can repay their loan within a five-year period, and each participant can receive support for one tractor or multiple pieces of machinery depending on their operational needs and repayment ability.
The arrangement significantly lowers the financial burden for small and aspiring farmers.
For youth participants, who often struggle with start-up capital, the initiative represents a lifeline to enter the agricultural value chain with real assets.
Speaking at the event, Prime Minister Matekane said the government’s goal is to create tangible opportunities for young Basotho to engage in farming.
“We cannot continue to rely on old methods and outdated tools. Mechanisation is key to transforming agriculture into a business and young people must lead that change,” he said.
Farmers would have the option to select from four tractor brands—John Deere, Massey Ferguson, New Holland, and Landini—each recommended for their durability and suitability for Lesotho’s terrain.
The tractors are expected to weigh at least 74,000 kilograms to ensure they function effectively across various soil types.
Matekane underscored that the facility’s structure is designed to make ownership accessible.
He noted that beneficiaries would not be required to pay a deposit, removing a major barrier to entry for many small-scale and youth farmers.
Mokhachane Mopeli, the Managing Director of Lesotho PostBank, hailed the scheme as a “forward-thinking initiative” that would empower farmers with modern agricultural machinery.
“PostBank has long supported government efforts to improve farmers’ access to credit and equipment and this new phase is a milestone, it ensures that 500 tractors will be made available to qualifying beneficiaries, without requiring upfront payment,” he said.
“To qualify, aspiring farmers must demonstrate access to at least 20 hectares of land, though those cultivating 10 hectares may also be considered. Verification will be done in collaboration with extension officers, who will confirm applicants’ authenticity and farming commitment,” Mopeli added.
He indicated that participants may also request PostBank to procure tractors with accompanying implements, such as ploughs, harrows, seed drills, cultivators, and rotavators, depending on their farming practices.
“This flexibility allows farmers to customise their equipment packages to meet their production goals.”
Minister of Agriculture, Food Security and Nutrition, Thabo Mofosi, said the initiative represents a turning point for Lesotho’s agricultural sector.
“This programme is not just about tractors, it’s about ensuring that every capable Mosotho farmer can actively participate in food production,” he said.
The Minister highlighted that since the Prime Minister’s call to Basotho to ensure for every field is cultivated, farmers have responded positively, with many achieving strong yields. “
The challenge now is not production anymore as before. We now have a problem of market access. With these tractors, we expect farmers to expand, diversify and reach high yields so that Lesotho can reach new markets,” he said.
Mofosi also encouraged civil servants interested in farming to apply, saying “…agriculture remains open to anyone committed to national food security.”
Dr. Retšelisitsoe Matlanyane, the Minister of Finance and Development Planning, said the initiative reinforces the role of agriculture as the backbone of Lesotho’s economy.
“This expansion is not just about numbers, but impact. It is about equipping more farmers with the tools they need to succeed, building resilience in our agricultural sector and ensuring that no farmer is left behind in our pursuit of food security.”
Dr. Matlanyane revealed that under the previous phase of the programme, about 75 percent of farmers who benefited were able to cultivate over 4,650 acres annually.
“The results speak for themselves. Mechanisation has improved efficiency, boosted production and strengthened food security across the country.”
She applauded the Prime Minister’s leadership in driving agriculture-led growth and said the new M200 million investment demonstrates government’s belief in the sector’s potential to create jobs, reduce poverty and stimulate rural development.
Through the joint efforts of the Ministry of Agriculture and Lesotho PostBank, the government plans to adopt bulk purchasing strategies for tractors and implements, reducing costs and ensuring transparency under the Public Procurement Act of 2025.
This collaboration aims to make mechanisation affordable and to transform agriculture from subsistence-based to commercially driven, with young Basotho leading the charge.
“By reserving 40 percent of tractors for the youth, the government is sending a clear message that the future of farming lies in innovation, entrepreneurship and inclusivity. The youth are our energy and our hope,” said Minister Mofosi.
“We are equipping them not just with machinery, but with the means to feed the nation and to build generational wealth,” he said.
SIDE BAR
How to Apply for the Tractor Scheme
Step 1: Prepare Your Land
Applicants must have at least 10 to 20 hectares of land ready for cultivation. The land can be owned, leased, or accessed through family arrangements, but must be verifiable.
Step 2: Visit Your Nearest Extension Office
Contact your District Agricultural Extension Office for guidance. Extension officers will:
- Verify your farming activities and land readiness.
- Provide a recommendation letter confirming you are an active or aspiring farmer.
Step 3: Approach Lesotho PostBank
Go to any Lesotho PostBank branch with the following documents:
- National ID
- Proof of land ownership or access
- Extension officer’s recommendation
- Business plan or short concept outlining your farming goals
Step 4: Choose Your Machinery
Select your preferred tractor brand (John Deere, Massey Ferguson, New Holland, or Landini) and any additional implements such as ploughs, harrows, or seed drills. The bank will guide you through approved suppliers and procurement processes.
Step 5: Access the Subsidy
Eligible applicants receive a 30% government subsidy toward the total cost. The remaining 70% is financed as a five-year loan under the Credit Guarantee Facility. No deposit is required.
Step 6: Approval & Delivery
Once approved, Lesotho PostBank coordinates the purchase and delivery of your machinery. Farmers will receive training on operation and maintenance through their extension offices.
Quick Facts:
40% of tractors reserved for youth farmers
500 tractors available in total
M200 million committed by government
30% subsidy per tractor or farm equipment purchase
Loan repayment period: 5 years
Implements available: Ploughs, harrows, seed drills, rotavators, cultivators
