Gabarone-listed pan-African financial services provider Letshego Holdings said on Friday that it had bought Afb, a financial services company that provided innovative credit products to consumers in Ghana, its second West African acquisition.
A statement from the group with consumer lending, microfinance and deposit-taking subsidiaries across Southern, East and West Africa, said Afb had a profitable business model focused on government deduction-at-source lending.
Afb, which is a licensed non-bank financial institution, offered innovative credit products to more than 60 000 customers via a network of more than 25 branch and customer access points.
Its products include deduction-at-source and direct loans to salaried employees, and SmartCash loans to informal and market traders. Afb also offers credit life insurance on selected products, and is a licensed deposit-taking institution, the statement said.
Letshego added it would look to leverage the deposit-taking capability to enhance its financial inclusion agenda in Ghana.
This deal comes after the acquisition of Letshego Nigeria MFB (formerly FBN Microfinance Bank) in 2015. It brings to 11 the number of countries across sub-Saharan Africa in which Letshego has operations and takes its customer base over 480 000.
Letshego said Afb’s strategy to deliver responsible lending services by leveraging technology to drive access, simplicity and customer satisfaction was fully aligned with its own inclusive finance agenda. The established product offering was also a good fit, it added.
“With over 600 000 government employees in Ghana and Letshego’s established strength in this sector, the opportunity for building on Afb’s platform is significant,” Letshego said.
Chief executive officer Chris Low said: “As a leading indigenous BSE-listed company, we intend to further enhance our product and solution offerings and expand our customer base, as we seek out opportunities to better respond to the financially under-served populations across sub-Saharan Africa.”
Arnold Parker, Afb Ghana managing director, said: “While we have a profitable and successful customer delivery model, we look forward to the innovations and capacity-building that Letshego’s engagement will bring to our business, the Ghanaian people, and the economy.”