9 April 2008
Gaborone — Financial services concern Micro- Provident Botswana, commonly known as Letshego, plans to spread its wings to more African countries.
The company, which celebrates its 10th anniversary this year, already has footprints in Swaziland, Tanzania, Uganda and Zambia. Letshego says in discussions it has targeted three more countries to set-up operations. Already, negotiations are at an advanced stage in the three countries to set up branches. "The company's formation in 1998 was inspired by the will to give ordinary citizens the tools they need to lift themselves from poverty and economic challenges by providing opportunities through consumer lending and other financial services aimed at helping Letshego clients to reap the rewards of their own potential," a statement from the company says.
Since its formation in September 1998, Letshego, has experienced rapid growth and evolved from being just a consumer lending entity to a fully-fledged financial services company. Over the years, it has introduced innovative products and services which include legal insurance, funeral insurance, Letshego Loan, personal development Thuto Loan, No deposit Vehicle Finance and the Executive Loan."Micro finance has become a significant part of financial services. While in the past, micro lending was perceived as a means of providing poor citizens with small loans to help them sustain their living, today the service includes comprehensive and innovative financial solutions. Letshego's growth in the Botswana Stock Exchange from a share price of P1 in 2002 to a share price of over P14 today is a true reflection of the confidence and respect Letshego has gained in Botswana's financial industry," said the managing director of Letshego, Jan Claassen. One of the Letshego's success stories is the Letshego Guard, which administers legal insurance policies. Established only four years ago, Letshego Guard regards itself a leader in the field, not only in terms of the highest number of members in excess of 40,000 but in adhering to strict and important compliance policies and regulations set by the Botswana government and the industry.
Letshego's existence has provided its partner commercial banks with tangible opportunities not only in Botswana, but in other countries it operates in. "Looking back, we are proud to have been an integral part of the Botswana government efforts not only in assisting in the improvement of the ordinary citizen's quality of life, but having adhered to good business practices and principles as well as high corporate governance standards throughout our existence. These are important business imperatives in a developing economy such as that of our country," says Letshego public relation officer Keneilwe Matseke.
She says that preparations to launch online applications for the convenience of clients is about to be completed. "The online applications will further improve the company's current 48-hour turn around time," she explains. Recently Letshego announced the conclusion of a $20 million financing agreement with International Finance Corporation (IFC). IFC is a shareholder in Letshego and a member of the World Bank Group based in Washington. The $20 million loan facility has a seven-year term and will be used by Letshego to finance its existing operations in Botswana, Swaziland and Zambia.
This will be IFC's second investment in Letshego following the acquisition of a seven percent equity stake in 2005.The group commenced operations in Zambia last October and is reportedly very pleased with its performance to date, despite strong resistance from existing consumer finance operators.
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