Botswana firm acquires FBN Microfinance Bank
25th Jan. 2016
Letshego Holdings Limited, a Botswana-based financial inclusion focused group with consumer, micro lending and deposit-taking subsidiaries across Southern and East Africa, has acquired a hundred per cent shareholding in FBN Microfinance Bank (FBN MFB).
The acquisition is from FBN MFB’s parent, FBN Holdings Plc.
The acquisition of FBN MFB marks Letshego’s entry into West Africa, having successfully built a footprint in East and Southern Africa with 265,000 customers across nine countries.
This development brings Letshego’s footprint to 10 countries, with a customer base of over 385,000, while Nigeria has been a key target market in its diversification plans.
Speaking at a press briefing to announce the acquisition, Group Managing Director, Letshego, Chris Low, said that FBN MFB will rebrand to Letshego MFB in due course.
“As the leading indigenous BSE-company by market capitalisation and profitability, it is an exciting time for us at Letshego.
“This opportunity to enter the Nigerian market coincides with the expansion of our range of financially inclusive products and services.
“We believe Nigeria’s growth prospects in our targeted low-and-middle income, and Micro and Small Enterprise (MSE), customer segments have significant upside potential, and that, by bringing our skills to this market, we can further financial inclusion and improve lives across Nigeria. We look forward to being able to further improve lives across the continent through this development.”
He disclosed that over 80,000 depositors and over 10,000 MSEs borrowing customers are in its operations and are directly aligned to Letshego’s financial inclusion agenda.
For its part, Letshego wants to bring expertise in payroll deduction lending in the public and private sector, as well as lending to micro and small enterprises, with a focus on agriculture, education and health sectors.
Letshego Holdings Limited is a Botswana International Financial Services Centre-accredited holding company with lending and deposit-taking subsidiaries across ten countries in Southern, East and West Africa.
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