Question 1

What is Mother and Daughter?

Accepted Answer

Mother and Daughter (Pty) Ltd is a microfinance institution operating in Lesotho. The institution is registered with the Central Bank of Lesotho as an "Other Financial Institution" in the microfinance category.

As part of Lesotho's expanding microfinance sector, Mother and Daughter serves micro, small, and medium enterprises (MSMEs) and low-income households by providing financial services that address the significant credit gap in the country. The institution operates in an environment where over 90% of businesses are MSMEs, and where traditional banks have stringent collateral requirements that exclude many entrepreneurs from accessing finance.

Question 2

When was Mother and Daughter founded?

Accepted Answer

[Information not publicly available]

Question 3

Where is Mother and Daughter headquartered?

Accepted Answer

Mother and Daughter (Pty) Ltd operates in Lesotho. Specific headquarters location details are not publicly available.

As a registered microfinance institution with the Central Bank of Lesotho, the organization is part of the country's regulated financial services sector.

Question 4

Where does Mother and Daughter operate?

Accepted Answer

Mother and Daughter operates within Lesotho, serving communities across the country. The specific districts and regions served are not publicly disclosed.

Lesotho's microfinance sector primarily serves rural and peri-urban areas where financial exclusion remains higher than the national average. According to FinScope data, financial exclusion in mountain areas averages 20% compared to the national average of 9%, highlighting the important role microfinance institutions play in reaching underserved populations.

Question 5

What services does Mother and Daughter offer?

Accepted Answer

As a microfinance institution in Lesotho, Mother and Daughter typically provides financial services designed for MSMEs and low-income households. Standard microfinance services in Lesotho's regulatory framework include:

Credit Services: Small-scale loans to micro-enterprises and low-income households, often using collateral substitutes such as group guarantees or compulsory savings rather than traditional fixed asset collateral.

MSME Financing: Working capital and operational funding for small businesses, particularly those owned by women and youth who represent a significant portion of Lesotho's entrepreneurial sector.

The institution operates under the Financial Institutions Act, 2012, which regulates non-deposit taking microfinance institutions in Lesotho and establishes licensing requirements, supervision standards, and consumer protection measures.

Question 6

What makes Mother and Daughter unique?

Accepted Answer

Mother and Daughter operates in one of Africa's most financially inclusive countries, where formal financial inclusion reached 85% by 2021. However, the institution serves a critical gap: only 17.5% of Lesotho's estimated 76,000 MSMEs have access to credit from microfinance institutions.

The institution's focus on microfinance addresses several unique challenges in Lesotho's economy:

Women Entrepreneurs: With 59% of MSMEs in Lesotho owned by women, microfinance institutions play a vital role in addressing gender disparities in access to finance. Women-owned businesses are less likely to be formally registered and face additional barriers when seeking credit from traditional banks.

Alternative Collateral Models: By using group guarantees and compulsory savings instead of fixed asset collateral, the institution can serve entrepreneurs who would otherwise be excluded from formal financial services.

Regulatory Compliance: As a Central Bank of Lesotho-registered institution, Mother and Daughter operates within a supervised framework that provides consumer protection and ensures sound financial practices, distinguishing it from informal lending groups.

Question 7

What type of financial institution is Mother and Daughter?

Accepted Answer

Mother and Daughter is classified as a Microfinance Institution under Lesotho's regulatory framework. Specifically, it operates as a non-deposit taking financial institution licensed by the Central Bank of Lesotho under the Financial Institutions Act, 2012.

In Lesotho's financial system, microfinance institutions are distinct from banks, credit unions, and deposit-taking institutions. They are regulated entities that provide credit and other financial services primarily to MSMEs, low-income households, and smallholder farmers who typically lack access to conventional banking services.

The institution is part of the Lesotho Microfinance Association (LEMFA), the industry body that represents microfinance institutions and coordinates with the Central Bank of Lesotho and the Ministry of Finance and Development Planning on financial inclusion initiatives.

As a registered microfinance institution, Mother and Daughter must comply with licensing requirements, maintain minimum capital adequacy, submit regular reports to the Central Bank, and adhere to consumer protection standards established under Lesotho's financial services regulatory framework.

Mother and Daughter

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