Letshego Optimistic About 2024 Despite Challenges 


  • Aims to expand mobile lending through partnerships with mobile service providers
  • Report underscores core deduction products and insurance for underserved customers
  • Digital self-service to drive sales growth and collection key to 6-2-5 strategy


Letshego Holdings Limited is confident about overcoming the hurdles it faced in the course of 2023 and positioning itself to navigate the opportunities and challenges of 2024.

Articulating their strategic vision for the company, Chairman Philip Odera and Group CEO Aupa Monyatsi emphasise Letshego’s commitment to sustainable growth and value creation for all stakeholders.

According to the two in Letshego’s preliminary unaudited full-year results for 2023, the regional micro-finance firm intends to leverage its digitalisation strategy to drive sales growth.

Test and learn programme

Odera and Monyatsi highlight their focus on expanding the mobile lending portfolio through partnerships with mobile service providers, aiming to provide accessible and competitive financial products to individuals and businesses.

Additionally, they underscore the significance of core deduction products and insurance offerings in providing financial security to underserved customers.

The executives outline plans to strengthen collections and recoveries based on insights gleaned from their test and learn programme, which includes writing back adjusted amounts identified from the recalculation of expected credit loss (ECL) in 2023.

Customer-centric innovation

Furthermore, Letshego aims to enhance payment capabilities on its digital platform and bolster momentum in deposit services to meet customers’ evolving digital needs for financial management.

Central to Letshego’s strategy is customer-centric innovation and digitalisation, aimed at improving the accessibility and convenience of basic financial services.

Odera and Monyatsi affirm their confidence in navigating the challenges of 2024 while leveraging a positive economic environment and the strength of their product proposition to drive sustainable growth.

Nigeria and Ghana

Acknowledging the impact of one-offs and foreign exchange fluctuations on operations in 2023, particularly in Nigeria and Ghana, the two executives anticipate these challenges to persist in the first half of 2024.

However, they remain optimistic that the macroeconomic landscape will improve in the second half, contingent upon favourable conditions.

Despite the challenges faced, Letshego achieved a profit before tax of P121 million in 2023, compared to a restated profit of P684 million in 2022.

Odera and Monyatsi acknowledge the delay in implementing the Group’s strategy to 2025 due to the headwinds experienced during the COVID era but affirm progress on the 6-2-5 strategy.

15% growth

The strategy is about focusing on business consolidation and optimisation, including digital self-service to drive sales growth and enhance collection and recovery capabilities.

In their largest market, Botswana, Letshego witnessed strong underlying business performance, resulting in a 15 percent growth in Gross Loans and Advances, primarily driven by Government Deduction at Source.

However, challenges in collections were encountered in the newly introduced “test and learn” Individual Non-DAS loan portfolio, leading to increased Expected Credit Losses.

Technical defaults

Additionally, technical defaults on some loans due to system migration at the central deductions clearing partner contributed to increased impairments in the Government DAS portfolio. Nonetheless, valuable lessons were learned from these experiences, which Letshego aims to leverage moving forward.

As Letshego Holdings looks ahead to 2024, Odera and Monyatsi have reaffirmed their commitment to navigating challenges and seizing opportunities, driven by their dedication to sustainable growth and value creation.

With a strategic focus on digitalisation, innovation and customer-centricity, Letshego remains poised to strengthen its position as a trusted financial partner, empowering individuals and businesses while improving lives.