Letshego Africa Holdings’ headquarters, a hub of innovation and financial inclusion, empowering communities across Africa (PHOTO/Courtesy)
Letshego Africa Holdings Ltd, a leading pan-African inclusive finance group, has vehemently denied reports of defaulting on loans in Kenya and Uganda, labelling the claims as “false and incorrect”.
In a statement addressed to funding partners, the company clarified that it has not defaulted on any obligations in its subsidiaries, contrary to a Nation Media Group headline on July 5, 2024.
The company attributed the confusion to adjustments in its Expected Credit Loss (ECL) methodology, which impacted its 2023 results and led to a restatement of its 2022 financial results. This resulted in covenant breaches with some funders, which have since been addressed through proactive engagement and the obtaining of “letters of no action”.
“We have always been committed to transparency and accountability, and we want to assure our stakeholders that our financial position remains solid,” the company emphasized.
The statement reassured stakeholders that the company’s capitalization and liquidity position remain strong, and it is confident in its ability to continue delivering on its pan-African inclusive finance strategy.
The company’s Annual Results for 2023, published on March 22, 2024, provided a detailed account of the adjustments made and their impact on the financial results.
The swift response from Letshego Africa Holdings has helped alleviate concerns and reaffirm the company’s commitment to transparency and accountability.
With its shares remaining stable on the stock market, analysts predict minimal impact on the company’s overall performance.
