personal finance - TKO Financial Wellness Academy

When I was invited to speak on Digital Finance at the launch of the Ministry of Information, Communication, Science & Innovation’s Science, Technology & Innovation (STI) Forum, I was reminded just how quickly technology is reshaping Lesotho’s financial landscape. The forum’s theme—STI as Catalysts for Digital Transformation for Inclusive Economic Growth—posed a powerful question: How are science and technology directly accelerating digital transformation for widespread economic benefit in Lesotho? The answer is both inspiring and sobering. Technology is creating opportunities for inclusion, but gaps in literacy and security could hold us back. 1. Financial Literacy in a Digitally Inclusive Nation Lesotho has made remarkable progress: according to FinMark Trust’s 2021 FinScope Report, 90% of Basotho are financially included. Thanks to mobile money and digital services, Basotho can save, borrow, insure, and transact from their mobile devices. Yet financial inclusion doesn’t equal financial capability. Many households face high indebtedness, low savings rates, and limited planning skills. Without improving financial literacy, access to tools won’t translate into long-term wealth or security. 2. Digital Literacy and Access: The Other Divide The Lesotho Communications Authority’s 2023 report shows that 83.1% of Basotho own mobile phones and 66% own smartphones. 65.1% use mobile money, 10.3% use both mobile money and banking, while 23.2% remain unserved. This data proves that access is growing, but it also highlights a digital divide. Many Basotho still struggle to navigate ATMs, mobile apps, or online payments. Digital literacy is the bridge between access and empowerment. Without it, technology risks leaving vulnerable groups further behind. 3. Cybersecurity, Digital Fraud, and Social Media Risks With convenience comes vulnerability. Lesotho faces rising threats like phishing, smishing, identity theft, and scams. Further there is a growing rise of scams promoted by unregulated “FinFluencers.” Social media has democratized financial advice, but misinformation and scams can spread quickly. Digital financial literacy—knowing how to transact securely, spot scams, and verify sources—is now as important as understanding interest rates or budgeting. 4. What Lesotho Can Do Next From my presentation and discussions at the STI Forum, three opportunities stand out: a) Invest in Ongoing Education and Innovation Scale initiatives like Money Month Campaign, the Science, Technology, Engineering, Arts and Manufacturing (STEAM), the Competitiveness And Financial Inclusion (CAFI), and Sebabatso initiatives. Equip youth, entrepreneurs, and rural communities with digital financial literacy. b) Fast-Track Integration Across Sectors Improve interoperability between government ministries, financial institutions, and telecoms. Create an enabling environment for innovation and cross-border opportunities. c) Strengthen Legislation and Cybersecurity Modernize policies to tackle fraud, cybercrime, and data protection. Build trust in digital financial services to encourage adoption. Conclusion Digital finance isn’t just about convenience, it’s about unlocking inclusive economic growth. When science, technology, and innovation are paired with education, governance, and collaboration, they become catalysts for prosperity. Basotho have the tools, the talent, and the technology. Now, we need the knowledge and partnerships to ensure no one is left behind. How have digital tools changed the way you save, invest, or run your business? Share your experiences and ideas in the comments below.

Tag: personal finance

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