Letshego to sell five African subsidiaries
Financial services group Letshego Africa Holdings Limited has announced plans to sell five of its East and West African subsidiaries to Dubai-based investment firm Axian Digital Venture Holdings and Management Limited as part of a broader strategy to strengthen its focus on Southern Africa.
The proposed transaction involves the sale of 100% of Letshego's shareholding in subsidiaries operating in Ghana, Tanzania, Nigeria, Rwanda and Uganda. The agreement has been signed through binding sale and purchase agreements, although the deal remains subject to regulatory approvals and stock exchange requirements.
Letshego said the move forms part of its previously announced portfolio optimisation strategy aimed at improving capital efficiency, strengthening its balance sheet and concentrating management attention on markets where the group enjoys greater scale and stronger competitive advantages.
Group chief executive officer, Reinette van der Merwe, described the transaction as an important milestone in the company's long-term strategy. “This proposed transaction marks an important step in simplifying the group and focusing on markets where we have the greatest scale, stronger competitive positioning and the most compelling opportunities for sustainable growth,” she said.
Van der Merwe added that the disposal is expected to improve capital allocation, enhance shareholder returns and create long-term value for investors. She also expressed confidence in Axian's ability to support the continued growth of the businesses being acquired, citing the company's experience, financial strength and commitment to financial inclusion across Africa.
The announcement carries particular significance for customers and stakeholders in Namibia, where Letshego sought to reassure clients that local operations will not be affected.
Chief executive officer of Letshego Holdings Namibia and Letshego Bank Namibia, Ester Kali, said it would be “business as usual” for the company's Namibian operations. “Our operations are unaffected, and our full attention remains on delivering accessible financial solutions to our customers and growing our contribution to Namibia’s financial inclusion agenda,” Kali said.
For Axian, the acquisition represents a significant expansion of its financial services footprint on the continent. The company already serves more than 24 million consumers and small and medium-sized enterprises across Africa through its financial services businesses and strategic partnerships.
Axian chief executive officer Erwan Gelebart said the agreement aligns with the company's long-term growth ambitions in high-potential African markets.
Letshego said all affected businesses would continue operating normally throughout the transaction process, with efforts focused on minimising disruption to customers, employees and business partners.
The group expects the transaction to strengthen liquidity, improve balance sheet resilience and enable greater focus on expanding its deposit-led funding model, short-term credit offerings, and transactional and savings products.
