More small, micro and medium enterprises are expected to benefit from the LESOTHO ENTERPRISE ASSISTANCE PROGRAMME (LEAP), when new recommendations to the matching grant model of the programme are introduced this month.

More than twenty business associations attended a meeting to review LEAP, an initiative of the Private Sector Competitiveness (PSC) Project, funded jointly by the World Bank and the government of Lesotho.

The PSC project’s report for the quarter ending December 2009 expressed concern on the low intake of the programme by Small, Micro and Medium Enterprises (SMMEs).

One of the LEAP requirements is that the recipient pays upfront for services, and the LEAP contribution is reimbursed upon completion of agreed activities and receipt of proof of payment.

Among concerns from the private sector is the lack of capacity of small and medium enterprises to meet this LEAP requirement, making it difficult for these entities to benefit from the grant. The private sector has requested the project to consider paying service providers directly in future, to ease the burden on small businesses.

Other recommendations include the following:

• Increase the contribution of LEAP to private companies from 60 to 70%;

• PSC project to develop a database of accredited service providers to ensure that beneficiaries get quality services; and

• Intensify program publicity to sensitize businesses about LEAP.

The meeting also proposed that the scope of LEAP be broadened to include some hardware for and internet connection as this is a crucial part of business in modern days. It was further recommended that LEAP should upscale technical support for business representative organisations to improve their effectiveness.

The PSC Project Manager, Mr. Chaba Mokuku assured the meeting that the recommendations made by the private sector would be presented to the Project Review Committee (PRC) and the World Bank for consideration. Mr. Mokuku also pointed out that the recommendations of the meeting will inform the new LEAP design to be implemented after the mid-term review of the PSC project.

On behalf of the private sector, Mrs. ‘Mawinnie Kanetsi thanked the project for opening its doors for contributions from business in the review. She said although initially the fund was SMME unfriendly, it is promising to know that LEAP takes business concerns into consideration.

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