Homegrown pan-African microlender, Letshego Africa, has received approval from an overwhelming majority of its shareholders to proceed with the disposal of five of its subsidiaries in East and West Africa.
The group has found a buyer for Letshego Ghana Savings and Loans PLC, Letshego Faidika Bank Tanzania Limited, Letshego Microfinance Bank Nigeria Limited, Letshego Rwanda Limited, and Letshego Uganda Limited.
The deal is valued at about P840 million and involves Letshego taking a P280 million loss. However, ahead of the Annual General Meeting last Friday, the microlender’s board had rallied shareholders to approve the deal, noting that it represented fair value “in the circumstances”.
The group has experienced adverse trading conditions in certain East and West African operations arising from macroeconomic pressures, foreign exchange volatility, inflationary conditions, increased credit impairments and regulatory developments, which contributed to a loss of P519.5 million in Letshego’s last financials.
Letshego’s Kenyan operations are due to be sold off separately, which will officially mark the group’s full departure from East and West Africa. Once these are sold, Letshego will go from being an 11-country focus to operations in just Botswana, Namibia, Eswatini, Kenya, Lesotho and Mozambique. In the full year 2025,
Letshego’s profit after tax from continuing operations rose to P284 million, supported by improved credit performance and revenue growth.
