Rédaction Africa Links 24 with The Africa Links 24
Published on 2024-03-28 06:34:50
Letshego Holdings Limited is optimistic about overcoming the challenges it faced in 2023 and positioning itself for success in 2024. Chairman Philip Odera and Group CEO Aupa Monyatsi emphasize the company’s commitment to sustainable growth and value creation for all stakeholders.
In their preliminary unaudited full-year results for 2023, Letshego plans to drive sales growth through its digitalization strategy. They are focusing on expanding their mobile lending portfolio through partnerships with mobile service providers to offer competitive financial products to individuals and businesses. Additionally, they highlight the importance of core deduction products and insurance offerings in providing financial security to underserved customers.
The executives also emphasize the importance of digital self-service to drive sales growth and enhance collection and recovery capabilities as part of their 6-2-5 strategy. This strategy involves focusing on business consolidation and optimization, including digital self-service, to improve accessibility and convenience for customers.
Letshego aims to strengthen collections and recoveries based on insights gained from their test and learn program. They also plan to enhance payment capabilities on their digital platform and improve deposit services to meet customers’ evolving digital needs for financial management.
Despite facing challenges in Nigeria and Ghana due to one-offs and foreign exchange fluctuations in 2023, Letshego achieved a profit before tax of P121 million. The executives anticipate ongoing challenges in the first half of 2024 but remain optimistic about improving macroeconomic conditions in the second half.
In their largest market, Botswana, Letshego saw a 15 percent growth in Gross Loans and Advances driven by Government Deduction at Source. However, challenges in collections were encountered in the Individual Non-DAS loan portfolio, leading to increased Expected Credit Losses. Technical defaults on some loans also contributed to increased impairments in the Government DAS portfolio.
Looking ahead to 2024, Odera and Monyatsi reiterate their commitment to sustainable growth and value creation through digitalization, innovation, and customer-centricity. They aim to strengthen Letshego’s position as a trusted financial partner, empowering individuals and businesses while improving lives.
Overall, Letshego Holdings is focused on leveraging its digitalization strategy, partnerships with mobile service providers, and customer-centric innovation to drive sales growth, enhance collection capabilities, and navigate the challenges and opportunities of 2024. With a strategic plan in place and a commitment to sustainable growth, Letshego is poised for success in the coming year.
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