Letshego rethinks local banking licence

Under local laws, any deposit-taking institutions must apply for a banking licence, something which Letshego tried and failed to do in 2013 and 2018. A banking licence for Letshego in Botswana would reduce the costs of its funding, as it would fund these from deposits.

Botswana is Letshego’s largest operation in its 11-country footprint, accounting for nearly a third of its P10 billion loan book as at June 30, 2020. Botswana profits accounted for 56% of group pre-tax profits of P483 million for the same period.