Letshego Africa Holdings Limited has announced plans to divest its operations in five African countries, including Ghana, in a move aimed at sharpening its strategic focus and strengthening its balance sheet.
The Botswana-headquartered inclusive finance group said it has entered into binding agreements with Axian Digital Venture Holdings and Management Limited (ADVHM), a Dubai-based financial services investor, for the sale of 100 percent of its shareholding in subsidiaries in Ghana, Tanzania, Nigeria, Rwanda and Uganda.
The businesses earmarked for sale include Letshego Ghana Savings and Loans PLC, Letshego Faidika Bank Tanzania Limited, Letshego Microfinance Bank Nigeria Limited, Letshego Rwanda PLC Limited and Letshego Uganda Limited.
Group Chief Executive Officer, Reinette van der Merwe, described the transaction as a key milestone in Letshego’s ongoing portfolio optimisation strategy.
“This proposed transaction marks an important milestone in the execution of our strategy to simplify the Group and focus on markets where we have the greatest scale, stronger competitive positioning and the most compelling opportunities for sustainable growth,” she said.
She added that the divestment would enable the group to “enhance capital efficiency, strengthen our balance sheet and position Letshego to deliver improved returns and sustainable long-term value for shareholders.”
The company indicated that the move will allow it to concentrate resources on its core Southern African markets while reinforcing its deposit-led funding model, expanding savings and transactional products, and scaling short-term credit solutions.
Axian, which is seeking to deepen its footprint in Africa’s financial services sector, says the acquisition aligns with its long-term expansion strategy.
“This agreement represents an important step in advancing Axian’s long-term strategy to expand our financial services footprint across high-growth markets,” said Erwan Gelebart, CEO of ADVHM.
He noted that Axian brings “financial capacity, complementary operational strengths and market knowledge” and is committed to working with existing teams to “continue serving customers, build on their existing strengths and accelerate the development of modern financial services across these markets.”
Letshego assured customers, employees and partners that all affected businesses will continue to operate normally during the transition, with efforts to minimise disruptions.
The transaction remains subject to regulatory approvals and stock exchange requirements, with further updates expected in due course.
