- $36,105,000Original Compact Project Amount
- $24,162,433Total Disbursed
|Estimated Economic Rate of Return (ERR) over 20 years
|Estimated beneficiaries over 20 years
|Estimated net benefits over 20 years
|At compact closure
Project DescriptionOver the last two decades Lesotho’s economic growth has been insufficient to significantly reduce poverty. Its sluggish growth was due in large part to external factors, including a decrease in remittances from citizens working abroad. The Private Sector Development Project aimed to stimulate private sector activity within the country by improving access to credit, reducing financial transaction costs, and increasing the participation of women in the economy. The activities included:
- improving the administration of land titles;
- modernizing the commercial legal system;
- strengthening payment and settlement systems;
- supporting provision of credit bureau services, including implementation of a national ID scheme; and
- training and outreach to support gender equality in economic rights.
As Lesotho was developing its MCC compact in 2005, MCC worked with the parliament to draft legislation to give married women the same legal status as men. The legislation passed parliament and was signed into law in 2006. The MCC compact program in Lesotho included funds for teams to conduct training targeted at women entrepreneurs, and involved a country-wide outreach program to inform women in rural areas of their new rights. As part of the Gender Equality in Economic Rights Activity, 6,200 people received training on gender equality advocacy. In addition, more than 21,000 women now hold joint land titles compared to 3,200 at the start of the compact.
Evaluation FindingsThere are two evaluation components of the Private Sector Development Project’s Land Administration Reform Activity. This includes an impact evaluation of the systematic regularization work in Maseru and a performance evaluation of the Land Administration Reform Activity’s Legislative Reform and Modernization and Institutional Strengthening Sub-Activities, which established a new Lesotho Land Administration Authority, revised related land legislation and streamlined and strengthened procedures related to land administration.
The performance evaluation will measure impacts on 1) the change in time to conduct a formal land transaction, including primary application for a formal lease and secondary formal land transactions; 2) the change in volume of formal land transactions; and 3) the change in number and amount of land related bonds/ mortgages. Initial monitoring of administrative data provided by the Lesotho Land Administration Authority showed improvements in volume of land transactions, mortgages, time to conduct a land transaction, and the number of women with land with leases held individually in their name or held jointly. The evaluator will review this data and collect additional data in 2018, with final analysis and results expected mid-2020.
The impact evaluation of the effects of the Land Leasing sub-activity will capture changes in perceptions of land tenure, land investments, and land values. The evaluator provided the baseline report in 2016 and follow-up data collection is expected in late 2018 with final results expected to be available mid-2020.
Key performance indicators and outputs at compact end date
|Key Performance Indicator
|End of Compact Target
|Quarter 1 through Quarter 20 Actuals (as of Dec 2013)
|Percent Compact Target Satisfied (as of Dec 2013)
|Civil Legal Reform Activity
|Cases filed at the commercial court
|Time required to resolve commercial disputes (days)
|Gender Equality Activity
|Women holding titles to land
|Land Reform Activity
|Change in time for property transactions (%)
|Urban land parcels regularized