REFLECTIONS FROM OUR GROUP CHAIR
I am pleased with the Group’s improved financial performance compared to the prior financial period. The Group’s balance sheet and cash position remains robust. Letshego is well poised to take advantage of market opportunities that support our future growth trajectory, thereby achieving greater, focused impact and building sustainable financial returns for our valued stakeholders.
Philip Odera, Group Chairperson
Operating environment
The World Bank estimates that GDP growth in sub-Saharan Africa accelerated to 3.2% in 2024 from 2.9% in 2023, slightly lower than projected in the first half of the year. Economic outcomes for 2024 were a mixed bag, with improved performance by South Africa, an average growth rate of 2.2% in Nigeria, a setback in the sub-region due to conflict in Sudan, and economic contraction resulting from reduced diamond sales in Botswana.
Inflation varied across the region, with most countries experiencing moderate and declining price increases, though food price inflation remained relatively high. Larger economies in Africa, however, experienced sharp price increases, partly due to significant currency depreciations, most notably in Nigeria. Food insecurity remained elevated across the region due to adverse weather events, including droughts and floods.
Letshego Africa Holdings’ collective operations across sub-Saharan Africa recorded a double-digit increase in operating income for the year ended 31 December 2024. Bottom-line performance was, however, dampened by an ultimate net loss, although the quantum has dramatically reduced from the net loss recorded for the full year 2023.
Ethics, governance and leadership
The holistic value of governance, risk management, conduct, and ethics underpins the Group’s forward thinking approach to sustainable organisational development and best governance practices. The intersection of these remains imperative in doing business as a purpose-led organisation and guides us in improving lives and delivering a meaningful impact to stakeholders and communities by enabling financial inclusion.
Sustainability is central to the Letshego of Improving Lives across Africa. The Group’s commitment to ethics, governance, and stakeholder trust serves as our guiding beacon. This commitment is supported by the vital roles of governance, risk management, regulation and ethical conduct in our organisation and across our footprint.
Our Sustainability Framework and ESG policies encompass the holistic value of an integrated culture of governance, risk and social impact, and environmental returns.
Letshego has continually strengthened its ESG commitment, converting country ESG policies into action with expert training, policy and guideline upgrades and the appointment of ESG Champions across country divisions.
The identification, monitoring and escalation of potential environmental and social risks is no longer an asset but imperative in doing business in today’s sustainability-conscious society. The establishment of Letshego’s Group Sustainability Management Committee, chaired by our Group Chief Risk and Compliance Officer, has further formalised the entrenchment of sustainable and ESG compliance business practices.
Letshego measures ESG against the identified themes of Governance, Risk Management, Social, Environmental, Disclosure & Reporting, Training and Stakeholder Engagement and Reporting. We are making tactical strides in building a robust Sustainability Framework that encompasses the multiple cross-divisional benefits that social and environmental governance achieves for our regional operations, stakeholders and communities.
Board changes
Mr Aupa Monyatsi resigned from the Board and as CEO of the Group on 15 January 2025. The Board thanks him for his leadership, commitment and dedication to the role and wishes him every success in his future career. Mr Brighton Banda has been appointed Interim CEO of the Group, and we welcome his contribution and insight to the Board.
Looking ahead
According to the World Bank outlook, sub-Saharan Africa’s GDP growth is projected to accelerate to 4.1% in 2025 and 4.3% in 2026, driven by declining inflation and easing monetary policy. South Africa and Nigeria’s growth rates will be somewhat lower than those of the rest of the region. The Group considers potential downside pressure on economic recoveries from events such as US sanctions, anti-immigration policies, Aid cuts, tariffs, attendant trade wars, and lingering geopolitical tensions. These events could affect fiscal deficits, domestic currencies and debt positions across several Letshego subsidiaries from 2025 through to 2026. For instance, US sanctions could lead to a decrease in the value of our investments in the affected countries, while trade wars could disrupt our supply chains. In line with Letshego’s long-standing experience gained from operating in emerging markets, the Group consistently stress-tests its business strategy against current and emerging risks, proactively implementing mitigating actions where necessary.
Our business fundamentals remain strong, reinforced by the sustained momentum observed in the latter half of the review year. In 2024, our operations continued to be affected by foreign exchange fluctuations, inflationary volatility, elevated direct costs and tax. However, we responded to these challenges by enhancing collection and recoveries, accelerating portfolio remediation efforts, and enforcing stringent cost controls. We understand these challenges and are committed to mitigating risks.
Despite the challenges we faced in 2024, we are strategically positioned to restore long-term profitability. With a focused product strategy, disciplined risk management, and stringent cost management, we have demonstrated our resilience. We are taking steps to build on the progress we have made to deliver resilient growth and create lasting value for our stakeholders.
In closing
I would like to express my heartfelt gratitude to our employees, clients, regulators, investors, both public and private partners, and all other stakeholders who continue to support Letshego’s journey. Despite facing challenging economic conditions, the Group’s Board, Executive, and Country Management Committees have demonstrated commendable commitment under trying circumstances. Their dedication, energy and enthusiasm continually inspire me. We remain committed to generating significant and lasting value and enhancing livelihoods for a sustainable future.
Philip Odera
Group Chairperson
DOWNLOAD: Letshego Africa Holdings 2024 Integrated Annual Report.pdf
