Botswana-based pan-African financier Letshego Africa posted a deeper full-year loss of BWP235.5 million for 2025, more than doubling from BWP93.3 million the previous year, as the lender took a heavy hit from discontinued operations tied to its planned exit from East and West Africa in geographies, namely Ghana, Tanzania, Rwanda, Nigeria and Uganda.
The drag from these markets, which contributed a BWP519.5 million loss largely due to IFRS 5 valuation adjustments, overshadowed what management described as a significant turnaround in the group’s underlying business.
Stripping out the discontinued units, Letshego delivered a sharp recovery in its core Southern African operations, with profit after tax rising 362% to BWP284 million. The rebound was driven by improved credit quality, tighter underwriting and stronger collections, reflected in a 77% drop in impairments to BWP124.8 million and a loan loss ratio improving to 1% from 4.5% a year earlier.
Revenue growth remained steady, with net interest income increasing 3% to BWP1.47 billion and non-funded income jumping 26% to BWP552.8 million, supported by insurance income and digital-led activity. However, rising operating costs pushed the cost-to-income ratio up to 60%, while net advances declined 14% as parts of the loan book were reclassified as held for sale.
Regionally, Southern Africa continued to anchor performance, with Botswana, Namibia and Mozambique all reporting solid profit growth, while Tanzania and Ghana also recorded strong gains despite being part of the disposal group. The strategic shift to exit select East and West African markets marks a decisive effort by the group to streamline operations and focus capital on higher-return geographies.
Looking ahead, Letshego says it is entering 2026 with improved asset quality, a stronger funding base and clearer strategic focus, though risks remain from tight liquidity conditions, particularly in Botswana, and broader macroeconomic pressures across its markets.