BOTSWANA FINANCIAL GROUP LETSHEGO ACQUIRES 75% OF TANZANIA'S ADVANS BANK

Letshego Holdings Limited (BSE:LETSHEGO), a Botswana based financial institution involved with micro-lending in Southern and Eastern Africa, has recently announced the acquisition of a 75% stake at Advans Bank Tanzania (ABT) to diversify its clients’ base and tap the growing demand in micro, small and medium-sized enterprises (MSMEs) lending in the country. 

The acquisition, which was executed by the subscription of newly-issued shares worth USD 7 million or TZS 15 billion, made Letshego the majority shareholder in ABT with Advans SA and the Netherlands Development Finance Company (FMO) holding minority stakes. 

According to ABT, the transaction not only supported the bank to meet the new minimum regulatory core capital for banks in Tanzania of TZS 15 billion raised from TZS 5 billion by the Bank of Tanzania (BOT), but also reinforces the shareholding structure and provide the resources needed to enhance its operation and expand its reach in the country. 

Click here to access the complete article, courtesy of Tanzaniainvest.com