Letshego Africa Holdings Ltd, a leading pan-African inclusive finance group, has vehemently denied reports of defaulting on loans in Kenya and Uganda, labelling the claims as “false and incorrect”.
In a statement released yesterday, the company clarified that it has not defaulted on any of its obligations in its subsidiaries, contrary to a headline published by Nation Media Group on July 5, 2024.
“We wish to categorically state that the allegations of default are entirely unfounded and misleading,” said Letshego Africa Holdings’ Group Chief Executive, Aupa Monyatsi. “We have always been committed to transparency and accountability, and we want to assure our stakeholders that our financial position remains solid.”
The company explained that the confusion arose from adjustments made to its Expected Credit Loss (ECL) methodology, which impacted its 2023 results and led to a restatement of its 2022 financial results.
This adjustment resulted in covenant breaches with some funders, which have since been addressed through proactive engagement and the obtaining of “letters of no action”.
“We proactively engaged with our funders and obtained the necessary waivers, ensuring that our debt obligations remain up to date,” Monyatsi emphasized. “Our capitalization and liquidity position remain strong, and we are confident in our ability to continue delivering on our pan-African inclusive finance strategy.”
The company’s Annual Results for 2023, published on March 22, 2024, provided a detailed account of the adjustments made and their impact on the financial results.
Stakeholders are encouraged to visit the company’s website or contact the investor relations department for factual information and official public releases.
“We appreciate the ongoing support and partnership of our funders, investors, and other stakeholders,” Monyatsi concluded. “We remain committed to our mission of providing inclusive financial services to underserved communities across Africa.”
In a show of confidence, the company’s shares remained stable on the stock market, with analysts predicting minimal impact on the company’s overall performance.
The swift response from Letshego Africa Holdings has helped to alleviate concerns and reaffirm the company’s commitment to transparency and accountability.
