Letshego Africa Holdings Limited is accelerating a major restructuring of its African operations through the proposed sale of five East and West African subsidiaries to Dubai-based Axian Digital Venture Holding and Management Limited.
The move is aimed at sharpening Letshego’s strategic focus, strengthening capital efficiency and boosting long-term shareholder returns. The transaction, announced yesterday, could see Letshego dispose of its entire shareholding in subsidiaries operating in Ghana, Tanzania, Nigeria, Rwanda and Uganda.
The businesses earmarked for sale include Letshego Ghana Savings and Loans PLC, Letshego Faidika Bank Tanzania Limited, Letshego Microfinance Bank Nigeria Limited, Letshego Rwanda PLC Limited and Letshego Uganda Limited. The disposal marks one of the most significant portfolio realignments undertaken by Letshego in recent years as the Botswana-headquartered lender seeks to simplify its operating structure and concentrate resources on its core Southern African markets, where management believes it enjoys stronger scale, competitive positioning and growth prospects.
For Namibia, however, the company quickly reassured customers and stakeholders that the transaction would have no operational impact.
“Business as usual” remained the message from Letshego Namibia, which continues to operate independently of the proposed divestment.
The deal forms part of a broader portfolio optimisation strategy that Letshego has been pursuing to improve capital allocation and enhance the performance of its remaining operations.
Strategic move
Letshego Group Chief Executive Officer, Reinette van der Merwe, said the sale represents a critical milestone in the company’s transformation agenda.
“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,” she said.
According to Van der Merwe, the streamlined structure is expected to improve capital efficiency, strengthen the balance sheet, and position the group to generate stronger, more sustainable returns for shareholders. The transaction also highlights a growing trend across Africa’s financial services sector, where institutions are increasingly refining geographic footprints in favour of markets that offer greater profitability, operational efficiency and strategic relevance. Despite the announcement, the transaction is not yet finalised and remains subject to regulatory approvals and relevant stock exchange requirements.
The proposed sale nevertheless signals a decisive strategic shift for one of Africa’s leading inclusive finance groups as it doubles down on Southern Africa while handing over five regional operations to an ambitious investor seeking to deepen its influence in Africa’s rapidly evolving financial services landscape.
Industry analysts note that while expansion across multiple African markets has historically been viewed as a growth strategy, many financial groups are now prioritising focused regional dominance and disciplined capital deployment amid rising regulatory requirements and increasing competition from digital financial service providers.
For Letshego, the benefits of the transaction are expected to extend beyond simplification. The company says proceeds and capital released from the disposal will strengthen regulatory capital buffers, improve liquidity, enhance balance sheet resilience and support returns on equity over time.
Letshego management also intends to intensify investment in its deposit-led funding model, scale short-term lending products and expand transactional banking and savings offerings across its remaining markets. For Namibia, the announcement reinforces the country’s importance within Letshego’s future strategy.
Local market
Chief Executive Officer of Letshego Holdings Namibia and Letshego Bank Namibia, Ester Kali, emphasised that local operations remain unaffected by the restructuring.
“This transaction is a reflection of Letshego Group’s deliberate and disciplined approach to building a stronger, more focused organisation. For Namibia, it is business as usual. 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,” she said. The acquisition also represents a significant strategic expansion for Axian, which has been steadily building its presence in African financial services through investments in technology-enabled banking and digital finance platforms.
Chief Executive Officer of Axian Digital Venture Holding and Management Limited, Erwan Gelebart, described the agreement as an important step in advancing his company’s long-term ambitions across Africa’s high-growth financial services markets.
Axian currently serves more than 24 million consumers and small and medium-sized enterprises across Africa through a network of financial institutions, partnerships and digital platforms. The company has positioned itself as a major investor in modern banking infrastructure, data-driven lending, payments and digital banking solutions.
-ebrandt@nepc.com.na