Letshego Holdings Limited (“Letshego”) was incorporated in 1998, is headquartered in Gaborone and has been publicly listed on the Botswana Stock Exchange since 2002. Today it is one of Botswana’s largest indigenous groups, with a market capitalisation in excess of USD500mn, placing it in the top 40 listed sub-Sahara African companies (ex-South Africa), and with an agenda focused on inclusive finance. Through its eleven country presence across Southern, East and West Africa (Botswana, Ghana, Kenya, Lesotho, Mozambique, Namibia, Nigeria, Rwanda, Swaziland, Tanzania and Uganda), its subsidiaries provide simple and appropriate consumer, microfinance and savings solutions to the financially underserved.
Letshego is committed to skills development. The Group employs over 3,100 team members, representing more than 20 nationalities, servicing a customer base of over 410,000 borrowers and 100,000 depositors through 315 customer access points.
The Group’s inclusive finance agenda is focused on providing underserved customers with access to simple, appropriate and affordable financial solutions. These broad based innovative and competitively priced solutions include loans between US$500 and US$60,000, appropriate to its customers’ every day needs, mainly through the deduction at source payroll model.
Letshego diversified its offering in 2012 through the acquisition of Micro Africa Limited in East Africa – providing loans to micro and small entrepreneurs (MSEs), collective groups as well as to low and middle income earners. The MSE portfolio continues to steadily increase Letshego’s advances - as at June 2016 (the Group’s latest results), the total micro finance portfolio contributed US$ 68mn.
In addition to Letshego’s deposit-taking activities in Mozambique, Namibia and Rwanda, microfinance banking has been added in Nigeria and Tanzania through the acquisition of banks already operating in MSE sectors there. Overall, the Group’s solutions encompass savings, borrowings, payments and micro-insurance.
The Group’s brand is trusted across Africa and is ster for being responsive to customers’ needs. Letshego is committed to responsible and ethical lending as well as full regulatory compliance in all its countries of operation.
DELIVERY OF STRONG GROWTH, PERFORMANCE AND RETURNS
Over the last decade and a half, the Group has expanded across Africa from its origins in Botswana. For the interim period ended June 2016, gross advances increased 9% versus the prior period in BWP terms and by 22% in local currency terms. The Group has continued to grow its market share, and maintains good asset quality (non-performing loans are under 3% of the total loan book). Operating income increased by 10% reflecting the underlying growth in advances to customers.
CONTINUED PROGRESS WITH DELIVERY OF THE STRATEGIC AGENDA
Letshego’s strategic intent is to build a leading African inclusive finance group. Delivering the strategy is centred on the following four pillars.
Our Strategy for Growth, Performance and Returns
Embracing financial inclusion
Letshego continues to progress its inclusive finance agenda through engaging with its stakeholders, including advocating for enabling financial inclusion policies as well as piloting agricultural, educational and affordable housing lending projects. It supplements this with a financial literacy programme across key customer segments.
Grow the franchise – investing and diversifying
Letshego continues to grow in its existing territories and diversify into new African markets. Subsequent to the Nigeria and Tanzania acquisitions, Letshego acquired a Ghanaian non-bank financial institution (currently engaged in lending to the formally employed sector) bringing the total country footprint to eleven, and marking its second entry into West Africa. This expansion is underpinned by continued investment in Letshego’s people, systems and capabilities.
Enhance the customer experience - delivering simple, appropriate and affordable solutions
Mozambique and Rwanda are now live with USSD mobile banking, with card services to be introduced in Mozambique and Namibia in 2017. A number of initiatives to integrate and improve our customer offering have resulted in solutions cutting across the agriculture, education, health, housing and micro-business sectors. In Ghana, plans to introduce mobile micro loans and savings will be implemented in 2017. Further, Letshego has enhanced its sales delivery model, increasing both accessibility and customer-needs driven service standards across its footprint.
Embed the future capability model - providing Access Anytime, Anywhere
Enhanced customer experience is Letshego’s unique selling proposition and an area that the Group differentiates itself over the years. Letshego has invested in innovation in order to provide access anytime, anywhere for customers. This includes the implementation of third party agency banking in Mozambique, and mobile banking, payment services and internet banking solutions, with Mozambique, Namibia, Rwanda and Tanzania at the forefront.