Letshego Holdings Namibia and its subsidiaries, Letshego Bank Namibia and Letshego Micro Financial Services Namibia, have, effective immediately, suspended all new Deduction at Source (DAS) loans for government employees. Letshego’s action is in response to a directive from the finance ministry.
“Moving forward, all new micro-lending loans will be issued through debit order arrangements and will be subject to a credit affordability assessment, ensuring responsible lending and continued financial support for our customers,” Letshego stated in a statement yesterday.
While this marks a significant shift in the business landscape, the bank yesterday stated that it has been preparing for this transition.
“Since 2016, the company has strategically diversified its product offering beyond micro-lending to include banking services. This diversification strategy has enabled Letshego to expand its product model beyond Deduction at Source lending, introducing Personal Loans with repayments via Debit Order, Home Loans, Transactional Accounts, and Savings Products,” the company stated yesterday.
The impact of Letshego’ s diversification strategy is evident. As of June 2025, this company reported notable portfolio growth, with the deposits book (Savings and Transactional Accounts) exceeding N$1.1 billion and Home Loans of over N$199 million.
“Our long-term diversification strategy is proving its value. It has strengthened our business and enhanced resilience, allowing us to continue delivering value to our shareholders. Letshego remains well-positioned to serve our customers and communities as we adapt to these changes. We are committed to promoting financial inclusion and maintaining operational stability,” said Ester Kali, Chief Executive Officer of Letshego Holdings Namibia.
Letshego further stated that amidst the changes, Letshego Holdings Namibia and its subsidiaries continue to support customers in need of banking services and personal or micro loans. These loans will now be facilitated through debit order arrangements, ensuring continued access to financial support.