End of Project Evaluation for Support to Financial Inclusion in Lesotho (By UNDP and UNCDF)

Report Cover Image
Evaluation Plan:
2013-2018, Lesotho
Evaluation Type:
Final Project
Planned End Date:
07/2014
Completion Date:
07/2014
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
12,000

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Title End of Project Evaluation for Support to Financial Inclusion in Lesotho (By UNDP and UNCDF)
Atlas Project Number: 00076599
Evaluation Plan: 2013-2018, Lesotho
Evaluation Type: Final Project
Status: Completed
Completion Date: 07/2014
Planned End Date: 07/2014
Management Response: Yes
Focus Area:
  • 1. Others
Corporate Outcome and Output (UNDP Strategic Plan 2014-2017)
  • 1. Output 1.1. National and sub-national systems and institutions enabled to achieve structural transformation of productive capacities that are sustainable and employment - and livelihoods- intensive
Evaluation Budget(US $): 12,000
Source of Funding: Core and UNCDF
Joint Programme: No
Joint Evaluation: Yes
  • Joint with UNDP and UNCDF
Evaluation Team members:
Name Title Email Nationality
Monica Lomena M&E Officer (UNCDF) lomgelis2@gmail.com
Fletcher Chilumba Program Manager (UNDP, Malawi) fletcher.chilumpha@undp.org
GEF Evaluation: No
Key Stakeholders: Ministry of Finance, Central Bank of Lesotho, UNCDF, UNDP
Countries: LESOTHOLESOTHO
Lessons
Findings
Recommendations
1

1. Ensure the finalisation of outstanding policies, legislation and strategies, including to facilitate the emergence of MFIs and alternative or innovative products and services on Lesotho?s financial landscape;

2
  1. Continue to build the capacity of key institutions, in order to better ensure the sustainability of financial inclusion interventions;
3 Maintain and indeed accelerate the momentum the programme has built, in particular, to fulfil the expectations of stakeholders generated by programme activities;
4

Ensure the establishment and functionality of M&E systems in the FIU, in the non-bank regulatory unit of the CBL and amongst other apex or regulatory bodies, including the MFA, the Law Office in the Ministry of Justice and Human Rights (MJHR), (which regulates associations including VLSAs and RSCGs that wish to formalise their governance arrangements), and the Department of Cooperatives in the Ministry of Trade, Industry, Cooperatives and Marketing (MTICM);

5 Facilitate the conducting of a FinScope to ascertain current levels of and constraints to financial inclusion
6

Accelerate and enhance the provision of FE services, particularly targeting women, the youth and the poor.

1. Recommendation:

1. Ensure the finalisation of outstanding policies, legislation and strategies, including to facilitate the emergence of MFIs and alternative or innovative products and services on Lesotho?s financial landscape;

Management Response: [Added: 2015/09/28] [Last Updated: 2018/01/10]

The outstanding policies and legislation have been advanced to the FSDS, and will be developed/finalised in the context of FSDS implementation.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
- Monitor and support implementation of the FSDS to establish development of the outstanding policy and legal frameworks.
[Added: 2016/12/05] [Last Updated: 2019/03/05]
Economic Adviser, Relevant Projects managers 2018/01 Completed Implementation of the FSDS is led by the Central Bank of Lesotho. The CO participates in activities relating to financial education, stakeholder engagement and policy development. The CO is also implementing the Lesotho Scaling Inclusion for Mobile Money project, which is a strategic contribution to financial inclusion and FSDS implementation. History
- - Support advocacy for emergence of innovative products and services financial services in Lesotho.
[Added: 2016/12/05] [Last Updated: 2019/03/05]
Economic Adviser National Economist Relevant Project Managers 2019/01 Completed Lesotho SIMM supports emergence of innovative financial products and services. The project has supported two initiatives: - A Hackathon for financial services was hosted to promote innovations in financial services, and - World Vision and SMME Support Network were engaged to promote financial education among adults and business communities in Lesotho. History
2. Recommendation:
  1. Continue to build the capacity of key institutions, in order to better ensure the sustainability of financial inclusion interventions;
Management Response: [Added: 2015/09/28] [Last Updated: 2016/12/05]

Recommendation is noted.

UNDP intends to continue building capacity of key institutions and work with the Ministry of Finance and Central Bank of Lesotho, to identify opportuntiies for development. The Ministry of Finance has adopted coordiantion of the Financial Inclusion Steerign COmmittee, while the Central Bank has taken leadership of the Financial Education Steering Committee and teh Money Week activities.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
- Continue support to the coordination of financial inclusion and financial education activities within the Ministry of Finance and Central Bank of Lesotho.
[Added: 2016/12/05] [Last Updated: 2019/03/05]
Relevant project managers, National Economist, Economic Adviser 2019/01 Completed CO is supporting the Central Bank of Lesotho in the national financial education programme. further, in collaboration with the Ministry of Finance, the CO has supported implementation of financial education activities for adults and SMMEs in Lesotho History
Identify opportunities for development of follow-up program to advance financial inclusion in Lesotho.
[Added: 2016/12/05] [Last Updated: 2018/01/10]
National Economist, Economic Adviser, Relevant Project managers 2017/12 Completed A new project on financial inclusion, to support inclusive business and advanced access to finance was launched in 2017. History
3. Recommendation: Maintain and indeed accelerate the momentum the programme has built, in particular, to fulfil the expectations of stakeholders generated by programme activities;
Management Response: [Added: 2015/09/28]

The MOF is the lead institution for financial inclusion. However, no concrete stakeholder programs are ongoing at the moment, other than for Financial Education

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Strengthen the existing inclusive business platform, to promote leadership and ownership of the financial inclusion agenda in Lesotho
[Added: 2018/08/17]
Program Specialist 2019/12 Overdue-Initiated The MOF is a co-convener for the Lesotho SIMM Platform meetings, and had successfully led initiatives aimed at strengthing program appraoch and vision for financial inclusion in Lesotho.
4. Recommendation:

Ensure the establishment and functionality of M&E systems in the FIU, in the non-bank regulatory unit of the CBL and amongst other apex or regulatory bodies, including the MFA, the Law Office in the Ministry of Justice and Human Rights (MJHR), (which regulates associations including VLSAs and RSCGs that wish to formalise their governance arrangements), and the Department of Cooperatives in the Ministry of Trade, Industry, Cooperatives and Marketing (MTICM);

Management Response: [Added: 2015/09/28] [Last Updated: 2016/12/05]

Recommendation is noted.

Efforts are ongoing to support development of data frameworks for FIU and CBL to ease M&E functions

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Support development and capacity building for establishment of the M&E Framework for financial inclusion in Lesotho
[Added: 2016/12/05] [Last Updated: 2018/01/10]
Relevant program officers, National Economist, Economic Adviser 2016/12 Completed The M&E Framework for financial inclusion was completed in November 2016, History
Support development and capacity building for establishment of the M&E Framework for financial inclusion in Lesotho
[Added: 2016/12/05]
Relevant program officers, National Economist, Economic Adviser 2016/12 Completed The M&E Framework fro financial inclusion was completed in November 2016,
5. Recommendation: Facilitate the conducting of a FinScope to ascertain current levels of and constraints to financial inclusion
Management Response: [Added: 2015/09/28]

The Ministry of Finance is already advanced in preparing to the Finscope SMME in 2015; a follow-up Finscope consumer will be done in 2017.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
- Support the FinScope MSME 2015, data collection and analysis
[Added: 2016/12/05]
Relevant Program Officers, National Economist, Economic Adviser 2016/12 Completed FinScope MSME completed in October 2016
6. Recommendation:

Accelerate and enhance the provision of FE services, particularly targeting women, the youth and the poor.

Management Response: [Added: 2015/09/28] [Last Updated: 2016/12/05]

Recommendation noted.  An FE Interim strategy was developed in 2014. While activities are already ongoing, intention is to develop a joint FE project with CBL, FMT, MOF and UNDP.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Support resource mobilization and partnership to finalisation of a full FE Strategy
[Added: 2016/12/05] [Last Updated: 2018/01/10]
Relevant Program Officers 2017/12 Completed the Central Bank of Lesotho has taken full leadership on this activity. History
Develop concept note and project that integrates financial education to other business development programs and/or inclusive growth projects
[Added: 2016/12/05] [Last Updated: 2019/03/05]
Program Officers 2018/12 Overdue-Initiated In implementation of the new CPD, the Sustainable and Inclusive Economic Growth Portfolio will include interventions towards private sector development, which will incorporate projects on financial education and financial inclusion. History

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