BY THEMBA ZWANE
MBABANE- Homegrown pan-African microlender Letshego Africa has received overwhelming shareholder approval to proceed with a major restructuring that will see the company retain its operations in Eswatini as part of its future growth strategy.
Shareholders voted in favour of the disposal of five subsidiaries in East and West Africa during the company’s Annual General Meeting held last Friday. The approved transaction covers Letshego Ghana Savings and Loans PLC, Letshego Faidika Bank Tanzania Limited, Letshego Microfinance Bank Nigeria Limited, Letshego Rwanda Limited and Letshego Uganda Limited.
The restructuring marks a strategic shift by the financial services group as it narrows its geographical footprint to focus on markets it considers better positioned for sustainable growth. Once the planned sale of its Kenyan operations is concluded separately, Letshego will continue operating in Botswana, Namibia, Eswatini, Lesotho and Mozambique, placing the Kingdom among the core markets the company intends to strengthen going forward.
The approved transaction is valued at approximately P840 million, with Letshego expected to incur a P280 million accounting loss. However, the board recommended that shareholders support the deal, describing it as representing fair value under the prevailing circumstances.
According to the company, the decision follows prolonged adverse trading conditions in some East and West African markets, driven by macroeconomic pressures, foreign exchange volatility, inflation, increased credit impairments and regulatory changes. These factors contributed to a loss of P519.5 million recorded in the group’s last financial results.
Despite these challenges, Letshego reported encouraging performance from its continuing operations. For the 2025 financial year, the group posted a profit after tax of P284 million, supported by improved credit performance and revenue growth.
The restructuring is expected to allow Letshego to channel greater attention and resources towards its remaining markets, including Eswatini, reinforcing the Kingdom’s position within the group’s long-term business strategy. The shareholder endorsement signals confidence in the company’s plans to streamline operations while focusing on markets with stronger prospects for sustainable growth.
#Letshego #Eswatini #FinancialServices #Government #Parastatal #Restructuring
(Courtesy Pic)
