BIHL ups Letshego stake as higher profits beckon

Last September, fair value assessments by BIHL into its investments resulted in a P106 million impairment attributed to Letshego for the half year to June 2019. For the year to March 31, 2018, similar assessments resulted in a P140 million impairment from Letshego.

The microlender was the Botswana Stock Exchange’s biggest loser for 2019, shedding 56.2% in value or nearly P2 billion, as an exodus of executives purportedly over the group’s strategic direction, rattled investor confidence. Rather than pare down its exposure to Letshego, BIHL appears to have taken advantage of the bargain shares on offer and increased its (BIHL) holding from 26.17% to 27.95%.