Artificial Intelligence is no longer a distant concept in Africa’s economic evolution; it is fast becoming a driving force in reshaping financial systems across the continent. In regions where traditional banking has struggled to reach underserved populations, AI is emerging as a tool to bridge the gap. Although many African countries are already integrating AI into financial services, Lesotho is now poised to chart its own course in this digital shift.
In the mobile money space, AI can significantly enhance existing services by detecting fraud in real-time, delivering personalised financial recommendations, and even enabling automated customer support in Sesotho or other local languages. Mobile money platforms like M-Pesa and EcoCash have already established a firm presence in Lesotho’s economy. With the integration of AI, these tools can evolve from basic transaction apps into intelligent financial ecosystems capable of analysing user behaviour, predicting needs, and offering relevant services at the right moment.
Access to credit remains a challenge in Lesotho, particularly for informal traders, smallholder farmers, and youth who often lack documented credit histories. AI systems offer an alternative approach. Instead of relying on conventional credit checks, machine learning models can assess financial reliability using mobile phone metadata, transaction records, or even communication habits. A street vendor in Maseru, for instance, could receive instant loan approval based on mobile wallet activity rather than navigating the hurdles of paperwork-heavy bank applications.
Investing is another area where AI could unlock value for everyday Basotho. Digital investment tools powered by algorithms, commonly referred to as robo-advisors, can democratise access to wealth creation. By analysing user profiles and market trends, these platforms could offer low-barrier investment products suited to individuals with limited capital and financial education, giving more people a pathway to long-term savings and asset growth.
Lesotho already has a solid digital foundation to build upon. With financial inclusion rates exceeding 90%, a population well-acquainted with mobile technology, and recent developments like the LeSwitch national payment system, the environment is ripe for fintech expansion. Initiatives such as the Digital Financial Inclusion Strategy highlight the government’s readiness to engage with emerging technologies and explore more adaptive regulatory models.
However, several issues must be addressed before AI can fully benefit the financial sector. Digital literacy remains uneven across regions, and rural connectivity is still a barrier for many. Moreover, regulatory clarity around data privacy, algorithmic decision-making, and consumer protection must be established to foster innovation while safeguarding public trust. Creating regulatory sandboxes, test environments where new AI-powered services can be trialled under government oversight, could encourage responsible experimentation and foster public-private collaboration.
Artificial Intelligence is not here to eliminate the role of humans in finance; rather, it offers tools that extend human capability. With thoughtful application, AI can help deliver personalised, efficient, and inclusive financial solutions to communities that have historically been left out of the formal system. For Lesotho, the opportunity is not just to catch up with global trends, but to shape a uniquely Basotho approach to AI in finance, one grounded in access, fairness, and sustainable development. The question is no longer if the country will adopt AI-driven finance, but how it will ensure that the technology serves everyone, not just the privileged few.