Executive and macro overview
Sub-Saharan Africa’s economy sustained a moderate recovery through 2025, with GDP growth now estimated in the 3.8% to 4.2% range for the year, supported by easing inflation and resilient domestic demand. Growth is expected to edge up modestly to around 4.2% to 4.3% in 2026, though operating performance remains uneven across countries. Tight global financing conditions, elevated borrowing costs, and high debt-servicing burdens continue to constrain fiscal space and investment, leaving the region exposed to external shocks.
In Tanzania, political unrest following the October 2025 elections has weakened investor confidence and disrupted trade and tourism flows, introducing heightened short-term uncertainty to East Africa’s outlook. Botswana’s economy continued to underperform, as prolonged global weakness in global diamond demand continues to weigh heavily on growth with a lower contraction expected in 2025 compared to 2024 despite ongoing government spending restraint and diversification efforts. Namibia maintained moderate growth of around 3.5% to 3.8% in 2025, with prospects strengthening into 2026 on the back of mining activity, green hydrogen developments, and continued recovery in tourism, although climate and external demand risks persist.
The Group remains vigilant to downside risks from global economic fragmentation, geopolitical tensions emanating primarily from the ongoing conflict in the Middle East, debt vulnerabilities, and climate-related shocks. It continues to monitor evolving macroeconomic, political, and market conditions across its operating countries, incorporating scenario analysis and policy developments to support resilience, informed decision-making, and strategic readiness.
Letshego delivered a solid underlying performance in FY2025, building on the recovery in the prior year, with normalised headline earnings reflecting continued operational recovery across its core markets. Despite consolidated results being impacted by discontinued operations, the Group’s continuing operations demonstrated strong earnings quality, improved credit outcomes and renewed commercial momentum across product lines, underscoring a strengthened foundation for sustainable value creation.
Discontinued operations and portfolio realignment
As part of the Board’s strategy to optimise the Group’s portfolio of businesses and to unlock shareholder value, the Board approved a plan during the second half of the year to explore the sale of some of the Group’s business interests in East and West Africa (namely in the geographies of Ghana, Tanzania, Rwanda, Nigeria and Uganda). Consequently, at 31 December 2025, the East and West Africa businesses in question were classified as a ‘disposal group held for sale’ and as a ‘discontinued operation’, whilst the business operations that will remain in the Group following the proposed disposal transaction have been classified as ‘continuing operations’.
The discontinued portfolio contributed a loss after tax of BWP519.5 million, driven by IFRS 5 valuation impairment of BWP570.7 million resulting in a total consolidated loss after tax of BWP235.5 million (FY2024: BWP93.3 million loss).
Despite the classification, Tanzania, Uganda, Ghana and Rwanda delivered improvements in profitability, collections, digital disbursements and deposit growth.
Strong profitability in continuing operations
The Group’s core franchises – principally in Southern Africa – delivered a significant uplift in earnings quality.
- Profit after tax from continuing operations rose to BWP284 million (FY2024: BWP61.4 million), supported by improved credit performance and revenue growth.
- Operating income grew 8% to BWP2 billion, driven by solid Deduction at Source (“DAS”) led activity in Namibia and Mozambique and strengthened insurance contributions.
- Net interest income increased 3% to BWP1.47 billion, while non-funded income rose 26% to BWP552.8 million.
- Net impairments reduced 77% to BWP124.8 million, reflecting enhanced underwriting, the clean-up of legacy portfolios, and stronger collections across Botswana, Eswatini and Kenya.
- Loan loss ratio improved to 1%, reinforcing improved credit quality.
- Southern Africa remained the Group’s performance anchor:
- Mozambique: Profit after tax up 56%, supported by strong deposit mobilisation and a 77% reduction in impairments.
- Namibia: Profit after tax up 24%. Strong growth from the Group’s expanded digital product offering, together with enhanced insurance income and improved customer experience.
- Botswana: Profit after tax up 23%, with improved credit metrics and renewed loan growth momentum.
Stronger funding position and liquidity discipline
FY2025 saw a meaningful shift in the Group’s funding mix, aligned with its strategy to strengthen local funding and reduce reliance on wholesale obligations.
- Total customer deposits increased by 64% to BWP3.5 billion, driven by strong performance in major deposit markets and improved digital servicing.
- Borrowings in continuing operations declined by 16% year-on-year as the Group rebalanced towards deposits.
- Despite liquidity pressures in the Botswana market, the Group remained adequately funded at consolidated level, supported by strengthened intra-group cash management and cost rationalisation initiatives.
Proactively positioned to generate shareholder value
With continuing operations showing strong profitability, enhanced credit quality, and improved funding resilience, Letshego enters the next strategic phase better equipped to drive sustainable returns. The strategic review of the East and West Africa portfolio is progressing, while operational discipline, capital optimisation and tax efficiency remain central to the medium term value creation agenda.
The Group’s improved underlying performance, restored asset quality and strengthened funding base provide a robust platform for long-term shareholder value.
Financial performance overview
The Group incurred a loss after tax of BWP235.5 million in comparison to a loss of BWP93.3 million reported in the prior year. The current year results were highly impacted by a BWP519.5 million ‘loss after tax from discontinued operations’, following the decision to classify the Group’s business interests in East and West Africa as a ‘disposal group held for sale’, and the adoption of the required International Financial Reporting Standards (IFRS) accounting treatment relating to such an occurrence. Regarding its ‘continuing operations’, the Group however generated a profit after tax of BWP284 million, in comparison to BWP61.4 million for the prior year, with the growth mainly driven by a strong revenue performance in the Southern Africa markets of Namibia and Mozambique and improved expected credit losses in Botswana, Eswatini and Kenya.
Operating income from continuing operations increased 8% year-on-year to BWP2 billion, spurred by growth in DAS business in Mozambique and Namibia, together with growth in income from insurance arrangements within the same jurisdictions.
Looking ahead
Macro-economic outlook
Baseline forecasts for Sub Saharan Africa’s economic growth are still optimistic. The International Monetary Fund (IMF) still sees the region holding near 4% real GDP growth in 2026. East and West Africa leads with the pace of GDP expansion, but the sub region’s resilience will be fragile due to high debt, tight external financing and weak aid inflows. Letshego expects accommodating monetary policies across its presence markets with some caution around the local currencies that are expected to under pressure in 2026.
Letshego is acutely aware of the geo-political impact arising from the current Middle East conflict, an external event that portends downside risks to the macro-economic conditions and prospects for its presence markets. Prolonged conflict and Strait of Hormuz disruption (>1 month) would likely shave off approximately one percentage point off the 2026 GDP growth forecast for our oil importing presence countries that consequentially face larger import bills, weaker reserves, currency pressure and inflationary flare ups. Nigeria is expected to record short term boost in this scenario but higher import bills for other commodities would erode the gain.
Strategic outlook
The Group enters 2026 with a strengthened core business, improved credit quality, and clearer strategic focus. The solid profitability delivered by continuing operations in FY2025 together with decisive actions taken across credit, portfolio optimisation, funding and cost discipline positions Letshego for a more sustainable growth trajectory in the year ahead.
Operationally, the business continues to show broad based recovery, with strong contributions from the Southern Africa markets and improving momentum in selected East and West Africa entities. While vulnerabilities remain in a few portfolios, FY2025 demonstrated that the prudent credit measures and portfolio clean up undertaken over the past two years have materially improved the quality of earnings.
As such, continued vigilance will be applied in markets experiencing liquidity constraints, most notably Botswana, where tight domestic liquidity and higher funding costs necessitate close monitoring and proactive scenario planning. Likewise, the recent Pula exchange rate adjustments implemented in July 2025 will require ongoing assessment to determine potential impacts on funding, capital flows and customer repayment behaviour across the Group.
With the Group’s new strategic roadmap in place and delivering early returns, management’s execution priorities for 2026 will focus on:
- Continuing to defend and strengthening the DAS franchise, which remains the backbone of the Group’s risk adjusted earnings.
- Scaling short term credit solutions through enhanced digital channels, improved risk models and product refinement.
- Accelerating deposit growth, leveraging transactional accounts, partnerships, and broader payments ecosystems.
- Driving operational efficiency, supported by cost discipline, improved collections, sharper credit origination, enhanced capital management and strengthened tax efficiency.
- Review of the target operating model in light of the ongoing corporate action which will impact our participation model in our East and West markets.
The strategic review of the Group’s East and West Africa portfolio continues to advance, with active engagement underway with potential counterparties. As disclosed through the Botswana Stock Exchange, the process remains on track and aligned to expectations. However, no definitive agreements have been reached, and there is no certainty that a transaction will be concluded. Shareholders are therefore advised to continue exercising caution when trading in the Company’s securities. The Group remains committed to transparency and disciplined strategic evaluation, ensuring any potential outcome supports long term value creation.
Looking ahead, the Board and management remain focused on business turnaround, sustainable profitability and enhanced shareholder returns. The Board acknowledges and appreciates the continued support of regulators, funders, shareholders and stakeholders throughout what has been a complex and transformative financial year. With a strengthened underlying franchise and a clear strategic direction, the Group is well positioned to navigate evolving market conditions and capture emerging opportunities across its regional footprint in 2026.
Audited financial statements
The financial statements for the year ended 31 December 2025, from which the financial information in this announcement is set out, have been audited by Ernst & Young, Letshego Group’s external auditors. Their audit report is available at the Group’s registered office.
For and on behalf of the Board of Directors:
Christopher Mokgware
Group Chairperson
31 March 2026
Reinette van der Merwe
Group Chief Executive Officer
31 March 2026
Related Downloads
Letshego Africa Holdings Full Year 2025 Audited Financial Results Fact Sheet.pdf
