Letshego Africa Holdings’ decision to withdraw from five African markets follows years of mounting losses that ultimately undermined one of the lender’s most ambitious growth bets.
Documents circulated to shareholders ahead of a vote on the proposed disposal of subsidiaries in Ghana, Tanzania, Nigeria, Rwanda and Uganda show the operations generated a combined loss after tax of P519.5 million in the year ended December 2025, despite producing operating income of P1.46 billion.
The businesses held assets worth P3.82 billion and carried a net asset value of P819.9 million at year-end, highlighting the scale of the investment that failed to translate into sustainable returns.
The figures offer fresh insight into the financial pressures behind Letshego’s decision to retreat from markets that were once central to its pan-African expansion strategy.
Earlier this year, the Botswana Stock Exchange-listed microfinance lender announced an agreement to sell the subsidiaries to Axian Digital Venture Holding and Management Limited for US$62.7 million, equivalent to about P850 million. The transaction forms part of a broader restructuring programme aimed at improving profitability and strengthening the group’s balance sheet.
In its shareholder circular, Letshego attributes the poor performance of the businesses to a combination of foreign exchange volatility, elevated inflation, regulatory shifts and rising credit impairments across several East and West African markets.
The disposal is significant. The assets being sold account for nearly one-fifth of the group’s consolidated asset base, marking a decisive shift away from the continental expansion model that drove Letshego’s growth for more than a decade.
Management says the exit will enable the group to redeploy capital towards higher-return markets, improve capital efficiency and bolster liquidity. Sale proceeds are expected to be directed towards debt reduction, working capital requirements and investment in core operations.
Yet the strategic reset comes with a financial penalty. Letshego estimates the transaction will result in an accounting loss of approximately P281 million.