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IFC Invests in Micro Provident Botswana to Expand Access to Financial Services in the Region
In Johannesburg
Houtan Bassiri
Phone: +27 11 731 3179
E-mail: HBassiri@ifc.org
In Washington
Lotte Pang
Phone: +1 (202) 758 4290
E-mail: LPang@ifc.org
Gaborone, December 13, 2007—IFC,
a member of the World Bank Group, announced today that it will invest in
Micro Provident Botswana, a leading consumer finance company, to help reach
previously underserved segments of the market and support sustainable economic
development in Botswana, Swaziland, and Zambia. Commonly known as Letshego,
the company will use IFC’s $20 million loan to expand the financial products
and services it offers through local subsidiaries.
The loan is part of a $50 million debt and equity financing package recently
approved by IFC’s Board for Letshego. This will be IFC’s second investment
in Letshego following a 7 percent equity stake IFC in 2005 acquired in
the company.
“Letshego is pleased to extend our collaboration with IFC,” said Jan
A. Claassen, Letshego’s Managing Director. “We are committed to serving
the widest possible customer base and providing financial services to more
people who have not previously had access, particularly in such countries
as Swaziland and Zambia."
IFC will provide the loan in South African rand and Zambian kwacha by using
the local currency swap markets. IFC is making its second local currency
loan in Zambia to help develop the country’s capital markets and bolster
the government’s strategy to develop kwacha financing options.
Access to financial services is costly and limited in much of Sub-Saharan
Africa, particularly among lower-income groups who often have access only
to deposit services. Much of the population operates on a cash-only basis
and outside of the formal banking system. Expanding financial services
and enabling more people to participate actively in the economy is thus
part of IFC’s strategy in the region’s financial markets.
“Letshego is a good example of a local, independent financial institution
that has flourished by expanding regionally,” said Thierry Tanoh, IFC
Director for Sub-Saharan Africa. “IFC puts a priority on supporting businesses
like Letshego that promote regional development and integration.”
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic
growth in developing countries by financing private sector investment,
mobilizing private capital in local and international financial markets,
and providing advisory and risk mitigation services to businesses and governments.
IFC’s vision is that poor people have the opportunity to escape poverty
and improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through loan participations and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.
About Letshego
Letshego is a pan African consumer finance group that is listed on
the Botswana Stock Exchange. Letshego’s trading subsidiaries include:
Name
Trading Country
Contact Detail
Letshego Financial Services (Pty) Ltd
Letshego
Botswana
Letshego Guard (Pty) Ltd
Legal Guard Botswana
Micro Provident Swaziland (Pty) Ltd
MP
Swaziland Swaziland
Micro Provident Tanzania Ltd
Fadika
Tanzania
Micro Provident Uganda Ltd
MP Uganda Uganda
Letshego Financial Services Ltd
Letshego
Zambia
The group’s loan book is in excess of BW Pula 600 million / US Dollars
100 million at its last financial reporting date of 31 July 2007. Letshego’s
footprint in Africa is expanding with the most recently established operation
being Letshego Financial Services Limited in Zambia. Letshego offers
unsecured loans to formally employed individuals and its objective is to
provide affordable access to finance.
Letshego’s major shareholders include IFC, Netherlands Development Finance
Company (FMO), Sanlam, Investec and Kingdom Zephyr. IFC’s funding
relationship expands Letshego’s funding relationships, which include FMO,
Standard Chartered Bank, Barclays and First National Bank. For more
information visit www.microprovident.com
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