Botswana–based Letshego Holdings has bought Micro Africa Limited, the mother company of Rwanda Microfinance. The 100 per cent buyout has seen Rwanda Microfinance rebrand to Letshego Rwanda Limited.
Bernard Kivavu, the Letshego Rwanda managing director, said the move will boost the firm’s financial stand and lending to customers, as well as improve service delivery.
“Letshego Holdings seeks to form a pan African financial hub. So, we are looking to expand our outreach to serve those with limited access to finance,” he told The New Times in an interview yesterday.
The Botswana Stock Exchange listed lender is incorporated in Botswana and has a footprint in 11 African countries. They are Rwanda, Botswana, Mozambique, Namibia, Swaziland, Tanzania, Uganda, Kenya, Zambia, Lesotho and South Sudan.
Kivavu said the rebranding will not affect all the existing contracts, memoranda of understanding with different stakeholders, agreements, letters of undertaking, conveyance and conferment.
The institution’s products include SME loans, salary loans, micro-housing loans, education loans, asset financing and group loans. Rwanda Microfinance was incorporated in May 2004 and was licensed by the National Bank of Rwanda in September 2004.
A couple of local banks were recently acquired by foreign-based firms. I&M bought into Commercial Bank of Rwanda, while Nigeria’s GT Bank acquired a stake in Fina Bank.