Letshego, the Pan African micro-lender this week disclosed that ‘deduction at source’ is the main reason the company has managed to diversify its product range, become profitable and expand across the continent. Writing in the company’s annual report released on Wednesday afternoon, Chairman of the group Enos Banda stated that, Letshego said deduction at source business ‘remains core to our business strategy and is the foundation on which our diversified solutions are built, and from which all our customer offerings emanate. We made good progress during 2017 in defending, diversifying and growing this part of our business in our key markets. We expect this to continue into 2018’ Established from humble beginnings in 1998, Letshego is now a formidable business in the continent and still depends on governments employees for its micro-lending services, although they have now diversified into formally-employed workers. “With the launch of the All-in-1 solution LetsGo, we envisage a step-change in operations, business efficiencies, risk mitigation and most importantly, the customer journey and experience,” noted Banda.
Since the company opened its doors twenty years ago, there has been competition from all fronts, both locally and abroad as well as tightened regulation. However, Banda said they are up to the challenge.
“Through our tailored solutions, understanding of our target segments and strategic partnerships, our ability to understand the specific needs of our target markets will enable us to differentiate ourselves from the increasing competition. Today our competition arises not only from traditional banks and financial institutions, but also from fintech and mobile network operators,” said the confident Banda.
The company which is among the biggest at BSE by market capitalization is also capacitating subsidiaries’ boards to enable them to take independent and effective decision. “Strong governance and leadership is undoubtedly a key factor in high performance,” said the Chairman. For the year to December, Letshego’s profit before taxation was P1 billion, which shows a 6 percent growth year on year. “Our results reflect progress in achieving our strategic goals, diversification of our operating model and provision of innovative solutions to meet the needs of our customers,” commented group Managing Director, Christopher Low.
Gross advances expanded by 17 percent to close at P8, 2 billion. He said that although revenues and profits showed positive growth, there is still much to be done on achieving and maintaining sustainable growth rates over the long term, while mitigating business risks - further diversification in country and solution portfolios will assist achievement of this. “We are confident we now have the tools to enhance our impact and enable every market to move closer towards their growth potential,” he added.