Staff Writer
Botswana Development Corporation (BDC) has approved a seven-year term loan facility of USD10 million to Letshego Africa Holdings Limited, in a move aimed at accelerating inclusive growth and expanding access to finance across key social sectors in Africa.
Letshego Africa Holdings, a Botswana-headquartered pan-African retail financial services group listed on the Botswana Stock Exchange, operates in 11 African markets and is widely known for its payroll deduction-based lending model.
According to a press release, the new facility will support the Group’s programmatic lending activities in sectors such as affordable housing, education, healthcare, and micro- and small-enterprise (MSE) financing.
The transaction marks a significant step in BDC’s “Impact Investment” strategy, which focuses on deploying catalytic capital to investments that generate both financial returns and measurable social outcomes. By supporting Letshego’s financial inclusion initiatives, BDC aims to help extend responsible credit to underserved households and small businesses, while strengthening economic resilience across the region.
According to BDC, the facility aligns with its evolving role as a commercially disciplined development finance institution that supports Botswana-rooted companies with regional reach. The investment also comes at a time when access to affordable funding remains constrained, enabling regulated financial institutions such as Letshego to sustain lending activity in lower-risk portfolios linked to payroll-based and essential consumer finance products.
BDC noted that the loan will allow Letshego to maintain and grow lending within its education, housing, and essential consumer finance portfolios areas viewed as critical to household stability, access to opportunity, and broader economic participation.
Commenting on the transaction, BDC Managing Director Oteng Keabetswe said the facility reflects the Corporation’s shift toward an impact-centric investment approach.
“This facility is more than a funding agreement; it is an investment in the resilience of the African household,” Keabetswe said. “By backing Letshego’s programmatic lending, we are ensuring that Botswana capital is put to work solving critical development challenges from housing deficits to educational access both at home and across the continent.”
Keabetswe added that the investment supports BDC’s strategic repositioning toward a more active balance sheet, increased deployment into yield-enhancing debt instruments, and stronger recurring income streams following recent portfolio restructuring.
Letshego Africa Holdings Group Chief Executive Officer Reinette van der Merwe welcomed the partnership, noting that the facility enhances the Group’s liquidity flexibility at a key stage of its growth and recovery.
“This USD10 million facility strengthens our ability to weather macroeconomic cycles while staying true to our purpose of improving lives,” she said. “It allows us to deepen our support for the education, housing, and small business sectors, where access to capital can be transformative.”
Overall, the transaction underscores BDC’s role as a strategic and counter-cyclical investor, deploying capital to support market stability, strengthen Botswana-based institutions, and promote sustainable economic development both locally and across Africa.
