Letshego Africa has announced that it has secured loans from two of its major shareholders, Botswana Public Officers Pension Fund (BPOPF) and Botswana Insurance Holdings Limited (BIHL), to help address liquidity challenges that threatened the financial stability of the Group.
In a disclosure made in line with Botswana Stock Exchange (BSE) Equity Listings Requirements, the company confirmed that it received a total of P249.1 million from BPOPF over four tranches between March and June 2025, and an additional P24 million from BIHL in March 2025.
BPOPF and BIHL hold 37.42% and 27.46% of Letshego, respectively, making them material shareholders. The loans are classified as small related party transactions under BSE rules and do not require shareholder approval. However, the company’s board said the transactions were reviewed and deemed fair and reasonable by its Audit Committee.
The BPOPF loan comes with strict conditions aimed at ensuring financial discipline and operational efficiency. These include restrictions on asset disposals, mergers and acquisitions, and a prohibition against using the funds to support underperforming subsidiaries. Additionally, any disposal of financial assets after 31 December 2025 must be used to prepay the outstanding loan.
Meanwhile, the loan from BIHL stipulates that Letshego must meet going concern assessments and that any dividends declared by its Botswana subsidiary for the 2025 financial year will be ceded to BIHL to settle the loan, unless otherwise agreed.
The company emphasized that no board appointments are tied to these transactions, and reiterated that the announcement is for information purposes only.
Letshego, which operates microfinance and consumer lending services across 11 African markets, was founded in 1998 and has been listed on the BSE since 2002.