Question 1

What is Banco Letshego?

Accepted Answer

Banco Letshego is a licensed microfinance bank operating in Mozambique as a subsidiary of Letshego Holdings Limited, a pan-African financial services group headquartered in Gaborone, Botswana. The bank specializes in inclusive finance, providing accessible financial solutions to low and middle-income earners, as well as micro and small enterprises across all provinces in Mozambique.

As one of Letshego Group's key operations, Banco Letshego serves over 67,000 borrowing customers and more than 3,000 savers nationwide. The bank is notable for being Letshego's third largest contributor to the Group's portfolio and profits.

Question 2

When was Banco Letshego founded?

Accepted Answer

Banco Letshego was established in 2011 as a greenfield entry into the Mozambique market. This marked a significant milestone for Letshego Holdings Limited, as it represented their first deposit-taking licensed institution within the Group.

The bank was founded to address the significantly underserved low and middle-income population in Mozambique. The parent company, Letshego Holdings Limited, traces its roots to 1998 when it was incorporated as Micro Provident Botswana Limited, before expanding across Africa and adopting the Letshego brand in 2008.

Question 3

Where is Banco Letshego headquartered?

Accepted Answer

Banco Letshego's headquarters are located in Maputo, Mozambique. The parent company, Letshego Holdings Limited, maintains its regional headquarters in Gaborone, Botswana, at Tower C, Zambezi Towers, Plot 54352, Central Business District.

Question 4

Where does Banco Letshego operate?

Accepted Answer

Banco Letshego operates across all provinces in Mozambique, ensuring nationwide coverage for its inclusive finance services. The bank maintains a presence throughout the country through various delivery channels, including physical branches, agency banking networks, and mobile interventions.

This comprehensive reach enables the bank to serve customers in both urban and rural areas across Mozambique's diverse geographic landscape.

Question 5

What services does Banco Letshego offer?

Accepted Answer

Banco Letshego provides a comprehensive range of microfinance banking services, including:

Deposit Accounts: Current accounts, savings accounts, and fixed deposit accounts for retail customers.

Credit Products: Unsecured loans targeted at low and middle-income earners, with over 70% of credit funds being used for productive purposes such as housing, education, insurance, and business development.

Card Services: Since April 2016, Banco Letshego has been licensed as a principal MasterCard issuer, enabling card issuance, ATM services, and contactless technology.

Digital Banking: Mobile banking interventions, card systems, and agency banking networks that extend financial services beyond traditional branches.

Value-Added Services: Financial literacy programs, remittance solutions, bill payment services, and money transfer capabilities.

Specialized Financing: Sector-specific solutions for agri-business, education, health, housing, and micro/small-enterprise development.

Question 6

What makes Banco Letshego unique?

Accepted Answer

Banco Letshego distinguishes itself through its strong commitment to financial inclusion and productive lending. Market research indicates that over 70% of Letshego customers use their credit for productive purposes, including small business funding, property ownership, education, health, and savings.

The bank achieved a historic milestone in September 2023 by listing the largest corporate bond in Mozambique's history, valued at MZN 1.3 billion (approximately USD 21 million). The bond was oversubscribed by 2.6 times, demonstrating strong investor confidence.

As a principal MasterCard issuer since 2016, Banco Letshego was among the first microfinance banks in Mozambique to offer comprehensive payment card services. The bank's focus on digital delivery platforms, including agency banking and mobile interventions, enables it to reach underserved populations across all provinces effectively.

Question 7

What type of financial institution is Banco Letshego?

Accepted Answer

Banco Letshego is classified as a microfinance bank (banco de microfinanças) under Mozambican banking regulations. This designation allows the institution to provide a full range of banking services with a specific focus on serving low and middle-income individuals and micro and small enterprises.

As a microfinance bank, Banco Letshego is regulated by the Bank of Mozambique (Banco de Moçambique) and holds both deposit-taking and lending licenses. This dual capability distinguishes it from credit-only microfinance institutions and positions it as a comprehensive financial services provider within Mozambique's tiered banking system.

Banco Letshego

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About Banco Letshego in Mozambique