Letshego Holdings Limited, a sub-Saharan financial services provider, will soon finalize the sale of Letshego Guard and Letshego Guard Insurance Company to Botswana Insurance Holdings Limited (BIHL), an insurance company based in Botswana, for BWP 57 million (the equivalent of USD 8.2 million). Letshego Holdings will reportedly sell the insurance-related subsidiaries so that it can direct its resources to its consumer lending program. The capital raised through the sale will allow Letshego Holdings to expand its lending activities in Mozambique, Namibia, Swaziland, Uganda, and Zambia.

The only condition that has not yet been met is the approval of the sale by the Non-Bank Financial Institutions Regulatory Authority (NBFIRA), an agency of the government of Botswana. BIHL has recently met several other conditions linked to the sale including the renewal of the Letshego Guard Insurance Company’s short-term license by the NBFIRA.

About Letshego Holdings Limited

Founded in 1998, Letshego Holdings Limited is an African financial services company based in Bostwana that provides short- to medium-term unsecured consumer loans. In addition to Botswana, the company operates in Swaziland, Uganda, Zambia, Mozambique, and Tanzania. For the period ending January 31, 2008, the company listed BWP 522.5 billion (the equivalent of USD 85.2 million) in total assets. Letshego’s major shareholders include the International Finance Corporation (IFC), the Netherlands Development Finance Company (FMO), Sanlam, Investec and Kingdom Zephyr. The company does not report to the Microfinance Information Exchange (MIX).

By Eric McKay, Research Assistant

Bibliography

[1] Mbongeni Mguni, “BIHL Seals P57 Million Purchase of Letshego Subsidiaries”, Mmegi Online, February 22, 2010, http://www.mmegi.bw/index.php?sid=4&aid=320&dir=2010/February/Monday22

Additional Links

MicroCapital Universe: Letshego Holdings Limited: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Letshego+Holdings+Limited