Letshego secures $15.8 million loan from Proparco for Botswana expansion

Feyisayo Ajayi -
Key Points
  • Letshego secures $15.8 million loan from Proparco to expand financial services in Botswana, focusing on housing, small business, and agriculture.
  • The loan aligns with Proparco’s strategy to reduce social inequalities and promote sustainable economic growth, focusing on underserved communities.
  • Letshego operates in 10 Sub-Saharan African countries, with the loan supporting its mission to enhance regional financial inclusion and resilience.

Letshego, a Botswana-based pan-African financial services firm linked to Malawian banking magnate Hitesh Anadkat, has secured a €15 million ($15.8 million) senior loan facility from Proparco, the French development finance institution.

The funding aims to advance Letshego’s mission of delivering inclusive financial solutions across Botswana, focusing on affordable housing, small business development, and agriculture.

Enhancing financial inclusion in underserved communities

The loan represents a pivotal step in promoting financial inclusion and sustainable economic growth, particularly for underserved communities. A formal ceremony to commemorate the partnership was held in Gaborone on Nov. 26, attended by the French Ambassador to Botswana and senior executives from both institutions.

Kgotso Bannalotlhe, Chief Executive of Letshego Botswana and Regional Executive for Eswatini and Lesotho, emphasized the significance of the collaboration. “We are pleased to have Proparco on board as a strategic partner and funder, contributing to the expansion of our vision for Botswana. Proparco shares our commitment to achieving a positive economic and social impact through sustainable business practices,” Bannalotlhe said.

Strategic alignment with Proparco

Proparco’s funding aligns with its 2023–2027 strategy, which focuses on reducing social inequalities and fostering sustainable economies. The loan qualifies under the “Bottom 40” and 2X Challenge criteria, emphasizing its impact on socio-economic value and gender equality.

In addition to financing, Proparco will provide technical assistance to enhance Letshego’s governance and operational standards, including securing certification in Client Protection Principles — a globally recognized benchmark for customer-centric and sustainable lending practices.

Expanding Letshego’s regional impact

Headquartered in Gaborone, Letshego operates in ten Sub-Saharan African markets, including Mozambique, Nigeria, Namibia, Kenya, and Tanzania. Anadkat, a key shareholder with a 2.9 percent stake in Letshego, is also the founder of FMB Capital Holdings, a leading bank in Malawi, and holds investments in Telekom Networks Malawi.

This partnership represents a significant milestone in Botswana’s financial sector, bolstering access to capital for underserved groups and strengthening economic resilience. With Proparco’s support, Letshego is poised to drive transformative change in financial inclusion and sustainable development across Africa.