Letshego Africa Holdings Limited has exited Uganda and four other African markets after entering into binding agreements to sell its subsidiaries to Axian Digital Venture Holding and Management Limited.
The move is aimed at sharpening its strategic focus and strengthening its financial position.
The Botswana headquartered group said the proposed transaction will see Axian acquire 100 percent of Letshego’s operations in Uganda, Ghana, Tanzania, Nigeria and Rwanda, marking a shift in the company’s footprint across East and West Africa.
The development shows Letshego’s deliberate move to streamline its portfolio and concentrate resources on its core Southern African markets where it believes it holds stronger competitive advantages and greater opportunities for sustainable growth.
“This proposed transaction marks an important milestone in the execution of our strategy to simplify the Group and focus on markets where we have the greatest scale, stronger competitive positioning and the most compelling opportunities for sustainable growth,” said Reinette van der Merwe, the Group Chief Executive Officer of Letshego.
She added, “By streamlining our portfolio, we expect to enhance capital efficiency, strengthen our balance sheet and position Letshego to deliver improved returns and sustainable long term value for shareholders.”
Van der Merwe also expressed confidence in the buyer.
She also noted that Axian has the financial strength and operational capability to grow the businesses being acquired.
“Importantly, we believe Axian is a strong and like minded business with the financial capacity, complementary operational strengths and market knowledge to support continued growth of these subsidiaries,” she said.
For Axian, the acquisition represents a strategic expansion into high growth African markets, reinforcing its ambition to deepen its presence in digital banking and financial services across the continent.
“This agreement represents an important step in advancing Axian’s long term strategy to expand our financial services footprint across high growth markets,” said Erwan Gelebart, Chief Executive Officer of Axian Digital Venture Holding and Management Limited.
He added that the company is keen to build on the existing foundations of the businesses and accelerate innovation.
“We look forward to working with the teams in these businesses to continue serving customers, build on their existing strengths and accelerate the development of modern financial services across these markets,” he said.
Letshego said the transaction is expected to strengthen its regulatory capital position, improve liquidity and enhance balance sheet resilience, while supporting better returns on equity over time.
The group also intends to focus more on its deposit led funding model, expand short term credit solutions and grow its transactional and savings products.
Despite the impending sale, the company assured customers, employees and partners that operations in the affected countries will continue as normal during the transition period, with efforts in place to minimise disruptions.
The deal remains subject to regulatory approvals and stock exchange requirements, with further details expected in due course.
Letshego Africa Holdings Limited is a multinational financial services provider headquartered and listed in Botswana, focused on delivering inclusive finance solutions to underserved populations across 11 sub Saharan African markets.
The group employs over 3,000 people, including direct and indirect sales agents, and serves more than 4.5 million customers.
For over 27 years, Letshego has positioned itself as a key player in expanding access to financial services through innovation and technology.
Axian Digital Venture Holding and Management Limited, part of the wider Axian Group, is a pan African investment and operating platform focused on digital banking and financial services.
The company invests in and scales regulated financial institutions across high growth markets, combining capital discipline with strong operational execution to build technology driven banking businesses.
Through its platforms and partnerships, Axian serves more than 24 million consumers and small and medium enterprises across Africa, with a strong emphasis on financial inclusion and modern digital financial solutions.
