- After a transformative year, the group shows resilience in core operations despite regional losses
GAZETTE REPORTER
Letshego Africa Holdings Limited reported a mixed set of results for the financial year ended 31 December 2025, highlighting both challenges and resilience. The Group recorded a loss after tax of P235.5 million, largely due to a P519.5 million loss from discontinued operations following the reclassification of its business interests in East and West Africa as a “disposal group held for sale.”
Focusing solely on continuing operations, the Group delivered a profit after tax of P284 million, up from P61.4 million in 2024. “The solid profitability delivered by continuing operations in FY2025 together with decisive actions taken across credit, portfolio optimisation, funding and cost discipline positions Letshego for a more sustainable growth trajectory in the year ahead,” the company said.
Regional Recovery
Operationally, Letshego continues to show broad-based recovery. Southern African markets contributed strongly to performance, while selected East and West African entities are beginning to gain momentum. Vulnerabilities remain in some portfolios, but credit measures and portfolio cleanups over the past two years have materially improved the quality of earnings.
On market challenges, the company noted, “Continued vigilance will be applied in markets experiencing liquidity constraints, most notably Botswana, where tight domestic liquidity and higher funding costs necessitate close monitoring and proactive scenario planning.” Similarly, the Pula exchange rate adjustments implemented in July 2025 will require ongoing assessment to understand potential impacts on funding, capital flows, and customer repayment behavior across the Group.
Strategic Focus
Management outlined key execution priorities for 2026. “We will continue to defend and strengthen the DAS franchise, which remains the backbone of the Group’s risk-adjusted earnings,” the company said. The Group also plans to scale short-term credit solutions through digital channels, refine products, accelerate deposit growth, and drive operational efficiency via cost discipline, improved collections, sharper credit origination, and enhanced capital management. The target operating model is under review in light of ongoing corporate actions affecting East and West Africa operations.
The strategic review of the East and West Africa portfolios continues, with active engagement underway with potential counterparties. Letshego emphasized that no definitive agreements have been reached and cautioned shareholders to exercise care when trading the Company’s securities.
Outlook
Looking ahead, the Board and management remain focused on business turnaround, sustainable profitability, and enhanced shareholder returns. The company expressed appreciation for regulators, funders, shareholders, and stakeholders for their support during “a complex and transformative financial year.”
Despite losses from discontinued operations, Letshego’s improved credit quality, operational recovery, and clearer strategic focus suggest the Group is well-positioned for growth.