Botswana-based pan-African microlender Letshego Africa is officially streamlining its footprint. Shareholders have given an overwhelming green light to proceed with the sale of five of its subsidiaries across East and West Africa, marking a major strategic pivot for the group.
Here is a breakdown of what this massive restructuring means for the lender.
The Deal at a Glance
The offloading process involves a major transition of assets, with Letshego cutting ties with several key regional markets.
- The Subsidiaries Involved: Ghana Savings and Loans PLC, Faidika Bank Tanzania, Microfinance Bank Nigeria, Letshego Rwanda, and Letshego Uganda.
- The Price Tag: The total deal is valued at approximately P840 million.
- The Catch: The sale forces Letshego to swallow a P280 million loss.
Despite the hit, Letshego’s board aggressively rallied shareholders ahead of the Annual General Meeting, convincing them that the deal represents "fair value" given the current economic climate.
Why the Sudden Retreat?
Operating across the African continent comes with its fair share of hurdles, and Letshego's East and West African branches have been feeling the heat. The group pointed to a perfect storm of hostile economic conditions that triggered a P519.5 million loss in their previous financials, including:
- Severe foreign exchange volatility
- Sustained inflationary pressures
- Spikes in credit impairments
- Tightening regulatory developments
Looking Ahead: A Leaner, More Profitable Future
This isn't the end of the pruning cycle. Letshego’s Kenyan operations are also slated to be sold off separately in the near future. Once Kenya is officially off the books, the microlender will have completely exited East and West Africa.
The New Strategy: Letshego is shrinking its footprint from an ambitious 11-country focus to just six core markets: Botswana, Namibia, Eswatini, Lesotho, Mozambique, and temporarily Kenya.
While shrinking your geographic footprint might look like a step backward, the strategy is already paying off where it matters most—the bottom line. For the full year 2025, Letshego’s profit after tax from its continuing operations rebounded to P284 million, driven by stronger revenue growth and significantly improved credit performance. By cutting its losses in volatile regions, Letshego is betting big on a leaner, more stable future.
link text
