- Funding to support growth ambitions across the group
- Funders include specialist investors who focus on micro and inclusive finance ventures
Following Letshego Holdings Limited Group’s progress and committed strategy in expanding inclusive finance across Sub Saharan Africa, the group has attracted and secured another P256million of funding from specialist international investors.
According to the pan-African micro-lender, new funders include specialist and impact investors who focus on micro and inclusive finance ventures. This new group of finance partners are headquartered in the United Kingdom (UK) and Europe, all with a keen interest in sustainable development in Africa.
Group Managing Director, Chris Low, said Letshego will be allocating this funding to support a variety of growth ambitions, which include: expansion of the loan book in selected markets; further investment into group systems and financial solutions technology as well as embedding existing and new strategic partnerships which expand the group’s customer base.
Verdant Capital, a specialist Africa investment bank, has facilitated and assisted Letshego in structuring and finalising this latest funding programme. The Letshego Group continuously reviews and manages its funding sources to maintain acceptable levels in costs of funding, while delivering further value for customers and all stakeholders for the long term. The structured funding arrangement will deliver treasury benefits and mitigate funding risk for the Letshego Group by achieving geographical diversification in its funding base, increasing the current number of funders, securing longer tenors as well as reducing the group’s overall open foreign exchange exposure by drawing new local currency-denominated facilities. After standard foreign exchange hedging operations, the funding will be available in Botswana Pula, Kenyan Shillings, Tanzanian Shillings and Nigerian Naira – some of the key currencies in which Letshego operates across the region.
The Letshego boss said his company progresses in its sustainable growth strategy, with marked in-roads in increasing inclusive finance through digital innovation.
“We now see a noteworthy increase in interest and support from new investors and funders. These are financial partners who share our ambition in delivering a commercial strategy which supports long term economic value for Africa’s under-served communities.”