- Country ticks all the boxes
- Becomes 11th country for Letshego
- Customer base reaches half a million
Letshego looks at a number of key issues before making any acquisition across the continent, group Managing Director, Chris Low said this week. Low was briefing the media on Letshego’s latest acquisition of a non-bank financial institution in Ghana, the second acquirement in West Africa after Nigeria.Letshego has acquired 100 percent shareholding in afb Ghana plc, a licensed non-bank financial institution which offers credit products to about 60, 000 customers across its network of more than 25 branch and access points.And Low has explained that Letshego does not acquire just for the sake of it, explaining that a number of issues in the targeted country are taken into consideration.Low said one of the things they look before arriving at a decision to make an acquisition is the country’s GDP, noting that in this case, Ghana which is one the few countries in west Africa which respects the rule of law, ticked all the boxes.After last week’s acquisition, Letshego’s footprint across Africa stands at 11 and customer base now close to half a million.Low said Letshego will continue to push for African expansion as the group seeks to be a Pan African financial institution. Following Letshego’s attainment of 100 percent stake, afb will from now be known as Letshego Ghana Limited.The financial institution is licensed by the Central Bank of Ghana which allows for deposit-taking and is believed will enable Letshego to launch USSD based mobile-savings solutions that will assist diversification of its funding base.It is said that currently all of afb’s funding is in local currency through a listed MTN programme on the Ghana Stock Exchange which will remain unaffected by the transaction.Low said they intend to further enhance their product and solution offerings and expand customer base as they seek out opportunities to respond to the financially under-served populations across sub-Saharan Africa.He said afb offers such a platform for the group to enable it to roll out full-service inclusive finance model of loans, savings, payments and micro-insurance to support the economic development of Ghana.It is thought that the acquisition of afb by Letshego will bring innovations and capacity building to the acquired company.