Letshego underperformance worries BIHL

Botswana Insurance Holdings Limited (BIHL) has expressed disappointment in Letshego Holdings Limited’s underperformance, leading to a significant impairment of the Group carrying value during 2024 financial year. Commenting on the Group’s 2024 Annual Report BIHL Group Chief Executive Officer, Cathrine Lesetedi said Letshego negatively impacted performance and group equity value. “Letshego’s operating profit was disappointing as a result of expected credit losses and write-offs and restructuring costs incurred during the year.” She highlighted that Bad debts are driven by the legacy book, especially the instant loans in Kenya, individual lending in Botswana and instant loans in Eswatini. “The Ghanaian economy is hyperinflationary and the application of IAS 29 impacted profitability. At 31 December 2024, the fair value less cost to sell was determined to be higher than the carrying value of the investment by P553 million, with this amount being accounted for as an impairment charge at that date.”