Letshego Holdings Limited says it has identified lending to employees in the mining industry as they see stability in the sector that has been the mainstay of the economy for decades. The company actively commenced lending to the mining employees in Botswana in May 2013.
Head of Corporate Affairs at the Botswana Stock Exchange listed consumer lender, Mythri Sambasivan-George said tourism, health, and education are also amongst the key areas of micro-entrepreneurship where the group are focusing its diversification strategy going forward.
“Traditionally, Letshego has predominantly focused on the public service segment and as part of the company expansion and diversification drive, the mining sector was identified because of the sector’s stability and good prospects in Botswana,” Sambasivan-George explained.
Currently, the publicly trading company is focusing on two mining companies namely; Debswana and BCL with Sambasivan-George saying there are plans to move further afield.
Letshego said it was particularly piloting the offering of housing (in addition to broader-based) financing to the mine sector employees in Botswana, which works through a 3-way partnership (between Letshego, the mining employer and a selected, pre-vetted reputable construction firm which will provide the customer lower material prices as well as project management and house plans all at a lower price due to the Letshego contract).
“Once this has been well tested and the model proves effective, we are looking to cross-fertilise such a model in other Letshego regions such as Kenya, amongst others.”
She revealed that tourism, health, education are amongst the key areas of micro-entrepreneurship where we as a Group are focusing our diversification strategy going forward.
However, she warned that some of the enablers, such as a deep and well established electronic and mobile banking system that can extend to the currently less serviced rural or peri-urban areas of Botswana need further development in order for our service offering to be feasible and secure.
“For example, in Mozambique, our sister company there has been asked to be part of a select group of industry leaders which will consult with the Central Bank of Mozambique on the development of an Agency Banking framework and regulations, which will engender more financially inclusive services to the currently un-banked or under-banked populace,” she said.
“This, in turn, has huge benefits for micro-entrepreneurship development, economic upliftment, poverty alleviation, and, at a macro-level a longer term impact on national GDP and per capita income levels, not to mention fiscal / tax revenues down the line.
