Letshego ready to close Nigerian bank deal

Letshego Holdings Limited, Botswana’s biggest micro-lender looks set to acquire 100 percent stake in FBN Microfinance Bank (FBN MFB) to advance its diversification and financial inclusion agenda in Africa.

The Pan-African Managing Director Chris Low said they have obtained preliminary regulatory approvals for the FBN MFB transaction. Low added that they are engaging relevant authorities in Botswana and Nigeria to complete remaining conditions precedent and close shortly.

“We look forward to sharing further positive developments in this regard, as this will be a significant step forward for our financial inclusion agenda,” Low explained.

The success of this acquisition will bring Letshego’s country expansions footprint to 10, increasing its customer base to over 385,000, and customer access points to nearly 300. It will also aid Letshego to penetrate the Nigerian market as part of its expansion plans through Africa.

FBN MFB is currently listed on the Nigerian Stock Exchange it was established in 2009 and is one of only six microfinance banks in Nigeria to have been awarded a national microfinance banking license.

The license will give access to Letshego’s broad-based financial inclusion solutions. Currently, FBN MFB has 28 branches and over 300 staff, 80, 000 depositors. Its core business is lending, savings and transactional financial services to micro and small enterprises (MSEs).