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The Dynamics of Savings Mobilisation in Lesotho

Author

Listed:
  • Simelane Bongile

    (Department of Economics, University of South Africa)

  • Odhiambo Nicholas M.

    (Department of Economics, University of South Africa, E-mail:odhianm@unisa.ac.za)

Abstract

This paper provides a conceptual analysis of the dynamics of savings in Lesotho for the period 1960 to 2017. The study is motivated by the low and sometimes negative savings rate and the declining level of economic growth prevailing in Lesotho during the period from 1960 to 2017. The study analyses the behaviour of savings in Lesotho, using the savings trends for the country ever since it obtained independence in 1966. The study further examines the policies that the government of Lesotho has implemented in order to promote savings in the country. The government adopted a policy on rural savings and credit schemes as a means of promoting savings in Lesotho. The purpose of the policy is to improve access to credit for the rural population. The study has identified some challenges that impede savings mobilization in Lesotho. The major savings challenge in Lesotho is the lack of banking facilities in rural areas.

Suggested Citation

  • Simelane Bongile & Odhiambo Nicholas M., 2019. "The Dynamics of Savings Mobilisation in Lesotho," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 29(3), pages 92-108, September.
    • Handle: RePEc:vrs:suvges:v:29:y:2019:i:3:p:92-108:n:6
    DOI: 10.2478/sues-2019-0014
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    References listed on IDEAS

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    Cited by:

    1. Sedegah Kordzo & Odhiambo Nicholas M., 2021. "A Review of the Impact of External Shocks on Monetary Policy Effectiveness in Non-WAEMU Countries," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 31(3), pages 37-59, September.

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    More about this item

    Keywords

    Savings; Economic Growth; GDP; Lesotho;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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