After 27 years of building a pan-African microfinance empire, Letshego Africa Holdings is drawing a new, smaller map of itself.
The Botswana-headquartered lender has signed binding agreements to sell its operations in Uganda, Ghana, Tanzania, Nigeria, and Rwanda to Dubai-based Axian Digital Venture Holdings and Management.
The buyer gets five regulated retail finance businesses across some of the continent’s most active markets. Letshego gets to focus — and, it hopes, survive better by doing less.
A Portfolio Reset, Not a Collapse
The deal is the clearest signal yet that Letshego is doubling down on Southern Africa, where it says it has greater scale, stronger competitive positioning, and better odds for sustainable growth.
Group CEO Reinette van der Merwe described the transaction as a milestone in the company’s strategy to simplify the group and free up capital. The logic is familiar to anyone who has watched overextended African financial groups struggle to serve too many markets with too little infrastructure: concentration beats coverage when margins are thin and operating costs are high.
By streamlining its portfolio, the company expects to improve capital efficiency, strengthen its balance sheet, and deliver better returns for shareholders.
In other words: Letshego wants to stop bleeding cash into markets where it hasn’t cracked the competitive code, and redirect that capital toward the Southern African operations where it actually has momentum.
The group currently serves more than 4.5 million customers across 11 sub-Saharan markets, with a staff of over 3,000, having built its brand on using technology and innovation to reach populations underserved by traditional financial institutions.
This deal effectively shrinks that footprint significantly.
What Axian Is Buying
Axian isn’t a blank-slate newcomer to African finance. The group already delivers financial services directly and through portfolio companies and strategic partnerships to more than 24 million consumers and small and medium-sized enterprises across the continent.
Under the agreement, Axian will acquire 100 percent of the share capital in Letshego Ghana Savings and Loans PLC, Letshego Faidika Bank Tanzania Limited, Letshego Microfinance Bank Nigeria Limited, Letshego Rwanda PLC Limited, and Letshego Uganda Limited.
For Axian, this is a land-grab with infrastructure attached — regulated licenses, existing customer bases, and operational teams across five markets that would take years and considerable regulatory goodwill to assemble from scratch.
CEO Erwan Gelebart framed the acquisition as a key step in advancing Axian’s long-term strategy to expand its financial services footprint across high-growth markets.
Uganda’s 20-Year Chapter Closes
For Letshego Uganda specifically, the exit ends more than two decades of building inclusive finance products for individuals, entrepreneurs, and underserved communities — though the company frames it as opening a new phase under Axian’s ownership.
Letshego Uganda CEO Giles Aijukwe said Axian’s pan-African ambition, digital capabilities, and shared commitment to financial inclusion made the transaction an opportunity to build on strong local foundations while positioning the business for greater efficiency, innovation, and long-term growth. The statement is optimistic by design — these are the words of a transition, not an obituary.
The real question is whether Axian can do what Letshego couldn’t: turn these East and West African operations into self-sustaining, competitive businesses in markets crowded with mobile money operators, digital lenders, and increasingly aggressive commercial banks.
Regulatory approvals are still pending. Until the deal closes, it’s business as usual — at least on paper.
Source: Monitor
