Mobile Lending anchors Letshego

Mobile lending product increased Letshego Holdings Group net loan book by 92 percent to P692 million during the year ended December 2023.

Presenting the results on Thursday, Letshego Group Chief Executive Officer, Aupa Monyatsi highlighted that The Mobile loan book increased by 90 percent year- on- year to P803 million, with loan income increasing by 307 percent to P195 million compared to P48 million in 2022.

“This improved performance is attributed to expanding the Mobile lending offering to Botswana, Kenya, Nigeria, and Tanzania.”

Last year the Group partnered with telecommunication operators to introduce mobile lending through mobile money services such as Mascom’s MyZaka and Botswana Telecommunications Corporation Limited ( BTC)’ s Smega. Customer uptake for Mobile Lending increased from over one million to 6.4 million customers during the year. Monyatsi said in 2024, Letshego’s focus will be on developing and strengthening collaborations with key partners in the mobile network operator sector and credit data space. “We plan to bolster existing partnerships and expand our solution into additional markets throughout the year.”

Going forward, Monyatsi said they are dedicated to offering accessible, competitive Mobile lending products, empowering individuals financially. “From a product focus perspective, our mobile lending portfolio is set for growth, supported by strong partnerships with mobile service providers.” He said the group will continue to build on its digitalisation strategy to scale sales growth. “Our goal remains to drive sustainable growth and deliver value to all stakeholders.” During the year, the Group’s Micro and Small Enterprises ( MSE) segment faced challenges due to high inflation levels, prompting the implementation of a strategic reset strategy with shorter loan tenors. This led to a 38 percent decrease in net loan book values. Letshego Group Chief Finance Officer, Gwen Muteiwa said they anticipate that this adjustment will pave the way for a more sustainable business in the East African markets in the coming year.

“Southern African markets maintained steady seven percent net loan book growth. In these markets, Mobile lending grew by 81 percent to P110 million, while the DAS loan portfolio increased by three percent to P10 billion.” She said Mozambique’s loan book grew by 24 percent to P2.5 billion, and Botswana’s net loan book increased by seven percent to P3.5 billion. “Southern African markets expanded the customer base by 14 percent to 967 522, driven by strong growth in Botswana’s Mobile lending segment.”