MCC and CAFI
Lesotho is brimming with untapped potential, particularly among its youth and women. As the backbone of economic and social progress, empowering these groups to participate meaningfully in the economy is not just essential—it’s transformative. Through initiatives like the Lesotho Health and Horticulture Compact (MCC) and the Competitiveness and Financial Inclusion (CAFI) Project, new doors are opening for youth and women to thrive as entrepreneurs and leaders. Here’s how these programs create life-changing opportunities and how you can seize them.
MCC: Lesotho Health and Horticulture Compact
The Millennium Challenge Corporation (MCC), in partnership with the Government of Lesotho, is driving significant change through the Lesotho Health and Horticulture Compact. This $300 million initiative focuses on improving the health sector while unlocking the economic potential of horticulture.
The MCC Lesotho Health and Horticulture Compact provides immense possibilities for women and youth to contribute to and benefit from the country’s economic transformation. Here are the key projects:
- The BETA Project
The BETA (Business Environment and Technical Assistance) project focuses on increasing profits for high-potential firms, particularly those owned by women and youth or located in rural areas. It provides:
- Technical Assistance: Skills training and mentorship to improve business operations.
- Business Development Services: Support in developing business strategies, accessing markets, and improving efficiency.
- Grant Funding: Financial aid for purchasing equipment, goods, and implementing business plans.
How Women and Youth Can Benefit: Entrepreneurs in agriculture, creative industries, manufacturing, and tourism can apply for funding and mentorship opportunities to scale their businesses and achieve sustainable growth.
2. Market-Driven Irrigated Horticulture (MDIH) Project
The MDIH project is transforming the agricultural landscape in Lesotho by investing in climate-smart irrigation infrastructure and creating strong value chains in horticulture.
How Women and Youth Can Benefit: Aspiring agripreneurs can participate in collaborative farming ventures with commercial partners to produce high-value crops. Training in climate-smart farming practices and access to modern irrigation technology are key benefits.
CAFI: Competitiveness and Financial Inclusion Project
The CAFI Project is another transformative initiative targeting economic growth through MSME development. With $52.5 million in funding from the World Bank, CAFI focuses on improving financial inclusion, enhancing entrepreneurship, and strengthening Lesotho’s business ecosystem. The CAFI project is revolutionizing entrepreneurship and financial inclusion in Lesotho, particularly for youth and women. Through initiatives like LEAP, the Entrepreneurship Hub, and Horticulture Incubation, CAFI provides a comprehensive platform for business growth.
- Lesotho Enterprise Assistance Programme (LEAP):
LEAP is a transformative matching grant scheme designed to increase the competitiveness of local enterprises by addressing critical gaps in productivity, growth, and resilience. LEAP covers up to 80% of eligible expenses for individual enterprises and 75% for business associations. Eligible expenditures include investments targeting productivity improvements, business expansion, disaster risk management, skills development, and digitization. The program emphasizes support for women- and youth-led MSMEs, particularly those exposed to climatic shocks or operating in environmentally sustainable sectors. Over its six-year timeline, LEAP aims to train 1,000 individuals through tailored skills development programs in partnership with public and private entities.
How Women and Youth Can Benefit: Women and youth entrepreneurs can leverage LEAP funding to develop innovative ideas, upgrade their businesses, or enter new markets. Specific outreach ensures women and youth are well-represented among beneficiaries. Entrepreneurs can access resources and training through the LEAP Portal, designed for easy application and progress tracking.
2. Entrepreneurship Hub and Seed Financing Facility:
The Entrepreneurship Hub is a cornerstone of CAFI’s mission to strengthen Lesotho’s entrepreneurial ecosystem and improve access to seed financing for startups and SMEs. With a focus on inclusion, the hub promotes women- and youth-led ventures by fostering innovation, business support services, and funding. Key components include incubation cycles, seed funds, and venture capital initiatives, aiming to support 500 startups and scale at least 50 enterprises.
How Women and Youth Can Benefit: Entrepreneurs can participate in incubation programs offering mentorship, technical assistance, and access to networks of investors and ecosystem stakeholders. Women and youth are encouraged to join workshops and tap into funding opportunities like the $7,000 incubation seed fund or $50,000 scale-up grants. The hub’s partnerships with diaspora networks and regional stakeholders ensure entrepreneurs gain exposure and support beyond Lesotho.
3. Horticulture Incubation Program:
The Horticulture Incubation Hub and Training Centre, based in Mahobong, Leribe, addresses gaps in commercial horticulture value chains, such as land access, infrastructure, and market linkages. By promoting climate-smart agricultural practices, the program empowers smallholder farmers, particularly women and youth, to scale their operations. The hub provides pre-incubation training, financial facilitation, and technical support through a five-year structured program for 15 farmers or groups.
How Women and Youth Can Benefit: Women and youth engaged in horticulture can access specialized training in soil preparation, irrigation, agricultural economics, and marketing logistics. The program also facilitates access to mechanization, grading and storage facilities, and domestic and international markets. Participants receive critical support for land preparation, orchard establishment, and value chain development, ensuring they can compete sustainably.
Steps to Take Advantage of These Programs
Stay Informed: Regularly check updates from MCC and CAFI on available opportunities, application deadlines, and training schedules.
Upskill Yourself: Invest in skills that align with the programs, such as agricultural practices, financial literacy, or entrepreneurship.
Build Your Network: Engage with stakeholders, program facilitators, and other entrepreneurs who are part of these initiatives. Collaboration often unlocks more opportunities.
Be Proactive: Apply for funding, training, or mentorship programs as soon as opportunities arise. Don’t wait for the perfect time—start now.
A Future of Empowerment and Growth
With initiatives like the MCC Health and Horticulture Compact and the CAFI Project, Lesotho is creating a more inclusive and prosperous future. Women and youth stand at the forefront of this transformation, ready to harness these resources to build thriving businesses and strengthen communities.
The opportunities are here. The question is—will you seize them? Let’s build a brighter future for Lesotho, one entrepreneur at a time.