Lender Letshego exits East and West Africa in strategic shake-up

KAMPALA, Uganda — Letshego Africa Holdings Limited has announced a major strategic shift that will see the lender exit its East and West African markets through the sale of five subsidiaries to Dubai-based Axian Digital Venture Holdings and Management Limited.

The binding sale and purchase agreements cover 100 percent of Letshego’s issued share capital in Uganda, Rwanda, Tanzania, Ghana, and Nigeria. The divestment is part of a portfolio optimization strategy designed to consolidate the group’s operations and capital within its core Southern African markets.

Reinette van der Merwe, Letshego group chief executive officer, said the move is a decisive step toward simplifying the group and focusing on regions where the company maintains its greatest scale and competitive positioning.

By streamlining our portfolio, we expect to enhance capital efficiency, strengthen our balance sheet, and position Letshego to deliver improved returns, van der Merwe said.

The acquiring firm, Axian, operates a pan-African platform for digital banking and financial services. Erwan Gelebart, chief executive officer of Axian Digital Venture Holdings, said the acquisition aligns with a long-term strategy to expand into high-growth markets. The firm currently serves more than 24 million consumers and small businesses across the continent.

In Uganda, where the lender has a significant presence, management indicated that the sale would provide a foundation for increased innovation and digital capability.

This transaction presents an opportunity to build on the strong foundations already established in Uganda, while positioning the business for greater efficiency, said Aijukwe Giles, chief executive officer of Letshego Uganda.

The group noted that the remaining portfolio would benefit from a strengthened regulatory capital position and improved liquidity. The transition will also allow Letshego to focus more intensely on its deposit-led funding model and short-term credit solutions in its remaining territories.

Letshego confirmed that all affected subsidiaries will continue to operate as normal during the transaction process to ensure minimal disruption to customers and employees.

The sale remains subject to regulatory approvals and requirements from relevant stock exchanges. Based in Botswana, Letshego currently operates across 11 sub-Saharan markets.