• Letshego Africa Holdings, a Botswana-based financial services group listed on the Botswana Stock Exchange, signed agreements with Axian Digital Venture Holdings to sell 100% of its banking and microfinance subsidiaries in Ghana, Nigeria, Rwanda, Tanzania, and Uganda.

• Letshego classified its East and West African operations as held for sale under IFRS 5 in its 2025 results, which triggered a 570.7 million pula impairment, a 519.5 million pula post-tax loss on the portfolio, and a consolidated post-tax loss of 235.5 million pula, compared with 93.3 million pula a year earlier.

• Once the transaction closes, Letshego will operate in six sub-Saharan markets instead of 11, focused exclusively on Southern Africa, while UAE-based Axian, already active in 21 African countries, will deepen its pan-African financial services platform.

Letshego Africa Holdings, a financial services group based in Botswana and listed on the Botswana Stock Exchange, announced earlier this week that it had signed agreements with Axian Digital Venture Holdings to divest 100% of the capital of five of its banking and microfinance subsidiaries in East and West Africa.

The transaction covers entities in Ghana, Nigeria, Rwanda, Tanzania, and Uganda. The targeted assets include Letshego Ghana Savings and Loans, Letshego Faidika Bank Tanzania, Letshego Microfinance Bank Nigeria, Letshego Rwanda, and Letshego Uganda. The group had brought these assets into its portfolio between 2012 and 2017 as part of its continental expansion strategy.

A refocus driven by financial pressure

The deal fits into the reorganization Letshego launched to concentrate its resources on its Southern African markets. Group management says the divestment aims to strengthen its capital structure and refocus operations on markets where its footprint is deemed most significant.

According to chief executive Reinette van der Merwe, the decision follows a logic of group simplification and reallocation of resources toward markets offering greater value-creation potential. "By rationalizing our portfolio, we expect to improve our capital efficiency, strengthen our balance sheet, and position Letshego to generate better returns and sustainable long-term value for our shareholders," she stated.

In its financial results for the 2025 financial year, Letshego had already classified its East and West African operations as held for sale, in line with the IFRS 5 accounting standard. This classification triggered an impairment of 570.7 million Botswana pula, contributing to a post-tax loss of 519.5 million pula on the portfolio and a consolidated post-tax loss of 235.5 million pula, against 93.3 million pula a year earlier. The group nonetheless points out that its subsidiaries in Tanzania, Uganda, Ghana, and Rwanda recorded improvements in operational performance.

Axian strengthens its pan-African platform

For UAE-based Axian, the acquisition marks a new step in its rollout on the African financial services market. Already present in 21 African countries through activities in telecommunications, financial services, and digital banking, the group continues to build out a pan-African platform geared toward retail customers and SMEs. Its chief executive, Reinette van der Merwe, frames the deal as a lever for expansion into high-potential markets.

Axian says it provides financial services, directly and through its portfolio companies and strategic partnerships, to more than 24 million consumers and small and medium-sized enterprises (SMEs) across Africa.

For Letshego, completion of the transaction will reduce its presence from 11 to six sub-Saharan markets, with an exclusive focus on Southern Africa. The deal remains subject to regulatory clearances and approval from the relevant stock market authorities.

Chamberline Moko