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Botswana-based financial services group, Letshego Africa Holdings, listed on the Botswana Stock Exchange, has signed an agreement with Accion Digital Venture Holdings to sell 100% of its banking and microfinance subsidiaries in Ghana, Nigeria, Rwanda, Tanzania and Uganda.
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Letshego classified its East and West African operations as held for sale under IFRS 5 in its 2025 results, leading to a 570.7 million pula loss, a post-tax loss on the portfolio of 519.5 million pula and a consolidated after-tax loss of 235.5 million pula, compared to 93.3 million pula a year earlier.
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Once the transaction closes, Letshego will operate in six sub-Saharan markets instead of 11, focusing exclusively on Southern Africa, while UAE-based Axion, which is 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 it signed a deal with Axion Digital Venture Holdings to sell 100% of its five banking and microfinance subsidiaries in East and West Africa.
The transaction involves entities from Ghana, Nigeria, Rwanda, Tanzania and Uganda. The targeted assets include Letshego Ghana Savings and Loan, Letshego Fadika Bank Tanzania, Letshego Microfinance Bank Nigeria, Letshego Rwanda and Letshego Uganda. The group had brought these properties into its portfolio between 2012 and 2017 as part of its continental expansion strategy.
Refocusing driven by financial pressures
The deal fits into a restructuring initiated by Letshego to focus its resources on its southern African markets. The group management says the disinvestment is aimed at strengthening its capital structure and refocusing operations on markets where its access is considered most important.
According to Chief Executive Reinette van der Merwe, the decision follows a logic of group simplification and reallocation of resources towards markets offering greater value-creation potential. “By rationalizing our portfolio, we hope to improve our capital efficiency, strengthen our balance sheet and position Letshego to generate superior returns and sustainable long-term value for our shareholders,” he said.
In its financial results for the 2025 financial year, Letshego had already classified its East and West African operations for sale, in line with the IFRS 5 accounting standard. This classification resulted in an impairment of Botswana Pula 570.7 million, leading to a post-tax loss on the portfolio of 519.5 million Pula and a consolidated after-tax loss of 235.5 million Pula, compared to 93.3 million Pula a year earlier. Yet the group says its subsidiaries in Tanzania, Uganda, Ghana and Rwanda have recorded improved operating performance.
Axion strengthens its pan-African platform
For UAE-based Axion, this acquisition marks a new step in its foray into 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 a pan-African platform for retail customers and SMEs. Its chief executive, Reinette Van der Merwe, frames the deal as a lever for expansion into high-potential markets.
Axion says it provides financial services to more than 24 million consumers and small and medium-sized enterprises (SMEs) across Africa, both directly and through its portfolio companies and strategic partnerships.
For Letshego, the completion of the transaction will reduce its presence in six sub-Saharan markets from 11, with a particular focus on Southern Africa. The deal is subject to regulatory clearance and approval from the relevant stock market authorities.
Chamberlain Moco