The remittances framework in Lesotho: Assessment of policies and programmes promoting the multiplier effect

Number of Pages: 
70
Year: 
2012
Electronic copy only
Description: 

This study explores policies and programmes aimed at facilitating remittances inflows through formal channels and leveraging remittances for development in Lesotho. The study also looks into regulations and laws on remittances. In order to answer key questions of this study, questionnaires were administered to different types of institutions.

The findings show there is a need to develop policies and initiatives for harnessing remittances for development. This study concludes by suggesting policy options for facilitating remittances inflows through regular channels and promoting the positive impact of remittances on development. 

Table of contents: 
  • Key recommendations
  • Executive summary
  • Recommandations clés
  • Résumé analytique
  • Recomendações principais
  • Resumo executivo
  • 1. Background
  • 2. Methodology
    • 2.1 Household surveys
    • 2.2 Stakeholders study
    • 2.3 Secondary information
  • 3. Migration trends in Lesotho
  • 4. Remittance trends in Lesotho
    • 4.1 Remittance inflows to Lesotho
    • 4.2 Remittance outflows from Lesotho
  • 5. Migrant remittances: Household analysis
    • 5.1 Profile of migrants
    • 5.2 Circular migration
    • 5.3 Remitting behaviour
  • 6. Remittances and human development: Policy options
    • 6.1 Remittances and human development in Lesotho
    • 6.2 Strengthening the infrastructure supporting remittances
    • 6.3 Leveraging remittances for development
  • 7. Infrastructure supporting remittances in Lesotho
    • 7.1 Remittances transfer products in Lesotho
      • 7.1.1 Postal services remittances transfer products
      • 7.1.2 Commercial banks remittances transfer products
      • 7.1.3 Mobile phone-based remittances products
      • 7.1.4 Other money transfer services providers
    • 7.2 Informal remittances transfers
    • 7.3 Regulations and policies on remittances in Lesotho
      • 7.3.1 Deferred Pay Act 2006–2007
      • 7.3.2 Foreign exchange control regulations
      • 7.3.3 Financial institutions (Anti-money laundering) guidelines, 2000
      • 7.3.4 Financial institutions (Service providers) (Licensing requirements) regulations, 2003
      • 7.3.5 Other regulations
    • 7.4 Government efforts to facilitate remittances inflows
      • 7.4.1 Awareness programmes on importance of remittances
      • 7.4.2 Reducing money transfer costs
      • 7.4.3 Spreading information on money transfer services and products
      • 7.4.4 Expansion of telecommunication infrastructure
      • 7.4.5 Banking the unbanked
      • 7.4.6 Issue of passports and the introduction of national identification cards
  • 8. Leveraging remittances for development in Lesotho
    • 8.1 Government-led initiatives
      • 8.1.1 Awareness of savings products
      • 8.1.2 Encouraging the formation of migrant associations
      • 8.1.3 Leveraging mineworker funds
      • 8.2 Private sector initiatives
      • 8.2.1 Remittances-linked financial services/products
      • 8.2.2 Remittances-linked credit
    • 8.3 Mineworker and mining company development projects
      • 8.3.1 Provision of skills training to migrant workers
      • 8.3.2 Community development projects funded by mining companies
      • 8.3.3 Food security programmes by mineworkers development agency
      • 8.3.4 Bursary fund by National Union of Mineworkers (NUM)
  • 9. Discussion of findings and recommendations
    • 9.1 Challenges and opportunities
    • 9.2 Facilitating remittances inflows
    • 9.3 Leveraging remittances for development
  • 10. References
  • 11. Annex 1: List of interviewed of institutions
  • 12. Annex 2: Interview guide for the study
  • 13. Annex 3: Money or remittances transfer products offered in Lesotho
  • 14. Annex 4: Money order prices for sending from Lesotho to Republic of South Africa
  • 15. Annex 5: Postal orders’ costs for sending money from Lesotho