The Central Bank of Lesotho (CBL) is the monetary authority responsible for financial stability, banking supervision, and the oversight of the national payment system.
For investors, CBL provides the prudential licensing framework for banks and certain financial service providers, sets core macro‑prudential standards, and regulates payment systems including mobile money and card schemes.
Lesotho’s currency, the loti (LSL), is pegged one-to-one to the South African rand (ZAR) under the Common Monetary Area (CMA) regime, supporting currency stability and cross‑border settlement with South Africa, Namibia, and eSwatini.
Regulatory Framework – Scope and Coverage
CBL’s regulatory scope covers:
- Licensing and supervision of banks and select financial institutions (insurance, money lenders);
- Payment systems oversight (switches, mobile money/e‑money, card acquiring/issuing);
- Macro‑prudential tools and financial stability monitoring;
- Foreign exchange administration and statistics; and
- Anti-money laundering (AML)/CFT guidance in coordination with national authorities.
Regulatory Map: Who Does What
| Area | Primary Authority / Instrument | What it Means for Investors |
|---|---|---|
| Bank and non-bank licensing and supervision | CBL under banking/financial institutions laws | Entry of banks; insurances, money lenders, capital, governance and reporting rules. |
| Payment systems and e‑money | CBL payment system regulations | Licensing/approvals for switches, wallets, and card schemes. |
| FX and statistics | CBL exchange/boop data and notices | Reporting on FX flows; guidance for foreign capital and dividends. |
| AML/CFT | CBL with national FIU framework | Customer due diligence, reporting and compliance expectations. |
Investor‑Facing Processes
| Process | Steps | Outcome |
|---|---|---|
| Banking/payment non-banking financial services’ licensing | Pre‑application meeting → submit application and fit‑and‑proper documentation → supervisory review | Licence/authorisation with conditions |
| E‑money/fintech pilots | Concept note → sandbox/innovation engagement where available → staged approvals | Piloted product with regulatory oversight |
| Cross‑border flows | Bank mandates → FX reporting → dividend/repatriation in line with policy | Predictable repatriation compliant with FX rules |