Improving Life
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Improving Life through inclusive finance 1 2 3 Preface Letshego Holdings Limited (“Letshego”) was incorporated in 1998, is headquartered in Gaborone and has been publicly listed on the Botswana Stock Exchange since 2002. Today it is one of Botswana’s largest indigenous groups, with a market capitalisation of approximately USD500mn, placing Contents it in the top 50 listed sub-Sahara African companies (ex-South Africa), with an agenda focused on inclusive finance. Through its eleven country presence across Southern, East and West Africa (Botswana, Ghana, Kenya, Lesotho, Mozambique, Namibia, Nigeria, Rwanda, Swaziland, Tanzania and Uganda), Preface 5 its subsidiaries provide simple, appropriate and accessible consumer and micro-finance banking solutions to the financially under-served in a sustainable manner. Letshego Group Structure 6 At Letshego, we are intent on operating a profitable business on a sustainable basis and we are committed to contributing to Our Business – Our Letshego 8 Africa’s growth and prosperity, as well as to improving the lives of our customers. Letshego’s vision is to become Africa’s leading inclusive finance group. Our inclusive finance solutions 9 In 2016, we have launched our customer engagement initiative, the Improving Life Campaign. For the duration of this campaign, we asked our customers to share their stories by telling us how Our history and milestones 10 they have used their loans productively. Prizes were awarded to the customers that had used their loans wisely, that is, generated income for their family while being able to service the loan and Our social impact 12 most of all, impacted society and left the community a better place than they had found it. Stories of Improving Life and 20 This book is inspired by these customers and their stories of Letshego country snapshots Improving Life. 4 5 GROUP STRUCTURE LETSHEGO HOLDINGS LIMITED 100% 100% 100% 95% 98% 85% 100% 100% 85% 100% 75% 85% LETSHEGO AFB LETSHEGO LETSHEGO LETSHEGO LETSHEGO LETSHEGO LETSHEGO LETSHEGO LETSHEGO LETSHEGO LETSHEGO FINANCIAL GHANA KENYA FINANCIAL FINANCIAL HOLDINGS MFB SOUTH FINANCIAL TANZANIA BANK UGANDA SERVICES PLC LTD SERVICES SERVICES NAMIBIA NIGERIA AFRICA SERVICES LIMITED TANZANIA LIMITED (PTY) LTD LESOTHO MOZAMBIQUE LTD LTD (PTY) LTD SWAZILAND LIMITED BOTSWANA LTD SA (PTY) LTD The following are Letshego’s regulated The following Letshego subsidiaries are The following subsidiaries are not 100% 100% 100% desposit-taking subsidiaries: regulated by the respective Non Bank currently regulated by a specific Regulatory Authorities in their respective in-country regulator: afb Ghana plc (to be re-branded to countries: AMDC Ltd Letshego Ghana in 2017) Letshego Kenya Limited LETSHEGO KENYA LETSHEGO BANK MAURITIUS Letshego Financial Services Letshego Financial Services (Pty) Letshego Tanzania Limited INSURANCE LTD NAMIBIA LTD (Name changed to Letshego Mozambique (SA), trading as Banco Limited Botswana - NBFIRA (Trading as Faidika) Mauritius Ltd post 31 Dec 2016) Letshego Letshego MFS Namibia (Pty) Limited - Letshego Uganda Limited Letshego Bank Namibia Limited NAMFISA (pending legislation) 100% 100% Letshego MFB Nigeria Limited Letshego Financial Services Lesotho (Pty) Limited - Central Bank Letshego Rwanda Limited , trading as Letshego Letshego Financial Services Swaziland (Pty) Limited - Central Bank LETSHEGO LETSHEGO MICROFINANCE Letshego Bank (T) Limited, trading RWANDA LTD SERVICES NAMIBIA as Letshego Bank Tanzania (PTY) LTD 6 7 Letshego has four solution offering sets. These solutions are people-centric in their design. “HELPING YOU PAY OR BE PAID” Our Business - We are progressively introducing innovative, technology-driven payment and remittance platforms that enable financial inclusion. Through initiatives such as agency banking in Mozambique and Tanzania, and USSD-based bill payment services in Rwanda, customers are able to make payments to suppliers, family, friends and utility providers. This covers their daily transaction needs and eliminates the inconvenience of Our Letshego travelling long distances to access physical payment points. In time, these services will be extended to all Letshego’s markets where regulatory licencing permits. We are pleased to share that we have started on this journey. Letshego is a Setswana term meaning ‘support’. PARTNERSHIPS WITH STAKEHOLDERS: “FINANCING YOUR NEEDS” At Letshego, we provide financial Our approach to growth At Letshego, we provide our customers with simple, appropriate and accessible financial solutions support to our customers through is built on nurturing UPWARD AND including loans between BWP50 (USD5) and BWP600,000 (USD60,000), mainly through the deduction at the provision of simple, appropriate partnerships with FORWARD MOTION: source model, as well as through individual lending to Micro-and-Small Entrepreneurs (MSEs) and micro- and accessible solutions. stakeholders that are We are committed to our loans to informal borrowers. Letshego customers are encouraged to use loans productively to improve their instrumental in enabling customers and aim to lives sustainably through investment into affordable housing (for own use and income generation), agri- us to achieve our strategic grow our franchise both to business, education and micro-and-small businesses (including small asset financing such as water tanks, Letshego’s solutions are broad- intent to be Africa’s leading achieve financial success biogas plants and solar units). Today, Letshego improves the lives of over 360,000 borrowers across Africa, based, innovative, competitively inclusive finance group. and to improve life. who apply their loan funding to a variety of these needs. priced and customer-needs driven. We serve an increasing variety of financial needs to “SAVING FOR THE FUTURE” three key customer segments: We encourage our customers to invest money into saving for family needs and aspirations, as well as Micro and Small Entrepreneurs longer term commitments that will see them improve their lives through income generation or purchasing (MSEs), public and private sector once off items that are needed for their families. Currently, call and term savings solutions are available in low and middle income earners Mozambique, Nigeria, Rwanda and Tanzania, with savings solutions being piloted in Ghana and Namibia. and individuals in the informal Over time, Letshego looks to offer increasingly flexible and innovatively channeled mobile micro-savings market. solutions that reward customers for responsible saving practices. A STRONG BASE: “IMPROVING YOUR LIFE” Represents the fact that our business The “LetsLive” solutions allow our customers to live a life of dignity and prosperity through added micro- is built on a strong foundation of insurance and other benefits such as funeral and life cover. Also, LetsLive is about allowing Letshego operational experience and stability. customers to provide for their families through investing in their well-being. This includes health and wellness subscriptions, amongst others. Customers’ lives will increasingly improve from these associated benefits by virtue of engaging with Letshego. In future, these will extend to financial wellness, wealth and loyalty add-ons. 8 9 One of Botswana’s largest indigenous companies LETSHEGO’S JOURNEY Our 1998 - 2015 2016 MILESTONES Affordable housing loan solutions piloted in Botswana (modelled on Kenya housing 1998 microfinance offering) Present in Letshego is founded in Botswana JANUARY Social and environmental due diligence in 5 countries, across 6 Letshego operations, History is concluded AFRICAN 2002 Listing on the Botswana Stock Exchange COUNTRIES Letshego is admitted as first African private sector partner to the Alliance for Financial 11 FEBRUARY Inclusion Through our 11 country presence BOTSWANA | GHANA | KENYA | LESOTHO | 2005 in Southern, East and West Africa, Uganda operations are launched MOZAMBIQUE | NAMIBIA | NIGERIA | RWANDA | MasterCard principal issuer status is awarded to Banco Letshego Mozambique Letshego provides consumer and SWAZILAND | TANZANIA | UGANDA APRIL Letshego’s signature social investment Healthcare Innovation Programme launches 2006 projects in Kenya and Rwanda micro-finance banking solutions. Swaziland and Tanzania operations are launched Transformational leadership development centres are launched for 50 rising leaders 2007 MAY from Letshego’s Africa footprint Zambia operations are launched and Botswana IFSC accreditation is attained by Moody’s Rated Ba3 (stable) JUNE Letshego’s flagship Improving Life customer campaign is launched first 2008 in Swaziland, with other countries following suit thereafter Acquisition of Eduloan Namibia (now Letshego Namibia) is completed Botswana holding company name is changed JULY Commercial banking licence in Namibia is obtained USD500 MILLION to Letshego Holdings Limited. Letshego team size crosses 1,000 Social impact survey covering 7,000 Letshego customers in 5 countries, is launched MARKET CAPITALISATION AUGUST Enos Banda is appointed to Letshego Holdings Limited Board 2011 Mozambique operations, with deposit- taking capability/licencing, are launched E-learning is launched across Letshego’s 2,780 team members in critical financial services subjects SEPTEMBER LetsGo “Blue Box” concept is recognised by MasterCard Foundation as an innovative 2012 financial solution Letshego Holdings Limited celebrates its 18th anniversary Funds are raised through JSE and BSE listed 3,000 315+ Medium Term Note programmes Team Over Eleven Countries