Letshego to exit East and West Africa, focus on Southern African
Pauline Dikuelo | Wednesday May 6, 2026 06:00
The homegrown microlender said in a recent filing on the Botswana Stock Exchange (BSE) that it had entered into binding sale and purchase agreements for its subsidiaries in these regions with Dubai-based investment and financial services firm Axian Digital Venture Holdings and Management Limited. The proposed transaction will see Letshego offload 100% of its issued share capital in several East and West African subsidiaries to Axian Digital Venture Holdings and Management Limited. The entities earmarked for disposal are Letshego Ghana Savings and Loans PLC, Letshego Faidika Bank Tanzania Limited, Letshego Microfinance Bank Nigeria Limited, Letshego Rwanda PLC Limited and Letshego Uganda Limited.
“The proposed transaction represents a decisive step in the execution of Letshego’s previously communicated portfolio optimisation strategy, which is designed to strengthen capital efficiency and concentrate management focus on the Group’s core Southern African markets,” Letshego said in an update to shareholders Letshego Group CEO, Reinette van der Merwe, said the deal reflects the company’s commitment to simplifying its structure and concentrating on markets where it enjoys greater scale and competitive advantage. “This proposed transaction marks an important milestone in executing our strategy to simplify the Group and focus on markets where we have the strongest positioning and most compelling growth opportunities,” she said.
The veteran banker added that the move is expected to improve capital allocation, boost returns, and support sustainable growth. Equally, she expressed confidence in Axian’s ability to take forward the divested businesses, citing its financial strength, operational expertise, and shared commitment to financial inclusion across Africa. Axian CEO Erwan Gelebart described the agreement as a key milestone in advancing the company’s long-term strategy to expand its financial services footprint in high-growth African markets. “This agreement represents an important step in advancing Axian’s long term strategy to expand our financial services footprint across high-growth markets,” he said. Axian brings extensive experience in operating regulated financial institutions at scale and has invested significantly in digital and operational capabilities. Through its portfolio companies and partnerships, the Group currently serves more than 24 million consumers and small and medium-sized enterprises across the continent.
The proposed sale is expected to yield several benefits for Letshego, including strengthening its regulatory capital position, enhancing liquidity, and improving balance sheet resilience. It will also support the Group’s return on equity over time. Furthermore, the transaction will enable BSE-listed group to intensify its focus on key strategic priorities, including its deposit-led funding model, the scaling of short-term credit solutions, and the expansion of transactional and savings products. The company has assured stakeholders that all affected businesses will continue to operate as normal throughout the transaction process, with measures in place to minimise disruption to customers, partners, and employees. Letshego is a pan-African financial services provider operating in 11 sub-Saharan markets and serves more than 4.5 million customers and employs over 3,000 people, leveraging innovation and technology to deliver inclusive financial solutions to underserved populations.
On the other hand, acquiring entity, Axian Digital Venture Holdings and Management Limited, part of the Axian Group, is a pan-African investment and operating platform focused on digital banking and financial services. The company specialises in acquiring and scaling regulated financial institutions, with an emphasis on technology-driven growth, robust risk management, and expanding access to modern financial services across the continent. However, the transaction remains subject to regulatory approvals and compliance with applicable stock exchange requirements.