After a five-year struggle with unemployment following his tertiary education, Mosebetsi found inspiration in his name, which means ‘work’ in English. He realized he was destined to create work rather than wait for a job. In 2016, at age 27, he co-founded Iconics Clothing, a venture that gained instrumental support and guidance from the Lesotho Competitiveness and Financial Inclusion Project (CAFI).
Iconics Clothing was one of the first 50 enterprises receiving support through a one-off grant of $7,000. This funding was effectively used to purchase industrial sewing and packaging machines, significantly increasing production capacity. The company now employs ten full-time staff, up from three, and has scaled up production from 20 garments daily to 50. This boost in productivity increased its revenue from $700 to $7,500 in the first month after receiving the grant. Iconics produces personal protective garments and thermally heated apparel essential during Lesotho's winter months. The company's revenue has been steadily increasing since incubation due to their enhanced production capacity and large orders from other contractors.
The CAFI Project aims to increase access to business support services and financial products for micro, small, and medium enterprises (MSMEs) and entrepreneurs, particularly those owned by women and youth. Selected businesses receive grants, mentoring on their business models and plans, with progress monitored over an “incubation” period aiming to scale up from start-up/concept stage to an investable stage. The first cohort of 50 started their incubation from November 2023 to May 2024. The six-year project began in 2022 with a goal of incubating 500 enterprises by 2028 under the Lesotho Entrepreneurship Hub program.
The project also supports training enterprise support organizations (ESOs), which act as “entrepreneurship accelerators” providing services and training to aspiring entrepreneurs in the country. Five ESOs in the first cohort provided training and mentorship to the selected enterprises, tracked their progress over six months of incubation, and connected them with relevant industry professionals.
“The incubation helped us through the grant,” says Rapitso Mosebetsi. “We learned and refined our marketing skills which have helped us attract clients. Additionally, through The Entrepreneurs Network ESO I was under; I was introduced to prospective clients; networking has proved valuable.”
Another entrepreneur benefiting from the CAFI Project is Tsolo Makakane. The 23-year-old co-founder of digital communications agency Inkstream Media participated motivated by his recent graduation without work experience needing support to build his skills for growing his enterprise. Through the project’s assistance, he increased capacity allowing acceptance of large-scale productions currently managing twelve billboards around the country.
Before joining CAFI Project Inkstream Media could only accept six or seven clients monthly; this capacity has doubled along with a 40-50% revenue increase employing six people using grants for purchasing laptops design software cameras collecting authentic stock images from Lesotho.
Ms Lisema Ramaili Limkokwing University Hub Manager expressed excitement participating having run similar entrepreneurship acceleration programs: “We are thrilled that we made it …. We developed selection criteria for enterprises.” Four out of ten incubated were ICT-related while others included fashion apparel travel tourism agriculture media communications remaining supportive post-incubation.
CAFI is a Government of Lesotho project supported by $52.5 million from World Bank plus $950000 India Brazil South Africa Fund improving business environment strengthening MSME resilience enhancing livelihoods economy nationally supporting commercial horticulture farming revitalizing textiles apparel sector improving financing disaster resilience MSMEs part World Bank Group private sector development strategy detailed Lesotho Country Partnership Framework FY24-28 promoting private-sector-led growth additional initiatives include Southern Africa Trade Facilitation Project Integrated Transport Trade Logistics Project Smallholder Agriculture Development Project collaborating government partners creating investment climate driving job creation private sector development.