Question 1

What is Sekabi Financial Services?

Accepted Answer

Sekabi Financial Services (Pty) Ltd is a microfinance institution operating in Lesotho. As a credit-only microfinance provider, it serves individuals and micro, small and medium enterprises (MSMEs) who typically lack access to traditional banking services.

The institution is regulated by the Central Bank of Lesotho under the Financial Institutions Act 2012 and subsequent microfinance regulations. Sekabi Financial Services is part of Lesotho's growing microfinance sector, which plays a critical role in promoting financial inclusion across the country.

Question 2

When was Sekabi Financial Services founded?

Accepted Answer

[Information not publicly available]

Question 3

Where is Sekabi Financial Services headquartered?

Accepted Answer

Sekabi Financial Services is headquartered in Lesotho. The specific location of its head office within the country is not publicly available.

Question 4

Where does Sekabi Financial Services operate?

Accepted Answer

Sekabi Financial Services operates within Lesotho, serving communities across the country. As a microfinance institution in Lesotho, it likely focuses on both urban centers like Maseru and rural areas where access to traditional banking services is limited.

Lesotho's microfinance sector has made significant progress in reaching underserved populations, particularly in mountainous and remote regions where financial exclusion rates are higher than the national average.

Question 5

What services does Sekabi Financial Services offer?

Accepted Answer

As a credit-only microfinance institution, Sekabi Financial Services provides short-term and long-term lending solutions to individuals and MSMEs. The institution does not offer deposit-taking services.

Typical microfinance services in Lesotho include personal loans, business loans for micro-enterprises, and agricultural financing. These loans are often characterized by the use of collateral substitutes such as group guarantees or compulsory savings arrangements, making them more accessible to low-income borrowers.

Question 6

What makes Sekabi Financial Services unique?

Accepted Answer

Sekabi Financial Services focuses on serving clients who are typically excluded from mainstream banking due to factors such as low or unstable income, limited collateral, or lack of formal credit history. This commitment to financial inclusion helps bridge the significant financing gap faced by Lesotho's MSMEs.

As part of Lesotho's microfinance ecosystem, the institution contributes to the country's National Financial Inclusion Strategy objectives. With only approximately 17.5% of Lesotho's estimated 76,000 MSMEs having access to credit, microfinance institutions like Sekabi Financial Services play a vital role in addressing the country's financing needs.

Question 7

What type of financial institution is Sekabi Financial Services?

Accepted Answer

Sekabi Financial Services is classified as a credit-only microfinance institution under Lesotho's regulatory framework. This means it is licensed to provide lending services but does not accept deposits from the public.

Under the Financial Institutions Act 2012 and the Financial Institutions (Credit Only and Deposit-taking Micro-Finance Institutions) Regulations 2014, credit-only microfinance institutions in Lesotho must comply with specific licensing requirements, capital adequacy standards, and regulatory supervision by the Central Bank of Lesotho. These institutions are distinct from deposit-taking microfinance institutions and commercial banks in terms of their permissible activities and regulatory requirements.

Sekabi Financial Services

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About Sekabi Financial Services in Lesotho