Letshego takes over afb Ghana Plc

One of Ghana’s fastest growing non-banking financial house afb Ghana Plc (afb), the thebftonline.com has gathered, has been taken over by Letshego Holdings Limited (“Letshego”), an inclusive finance focused group with consumer lending, microfinance and deposit-taking subsidiaries across Southern, East and West Africa.

The takeover the thebftonline.com understands is complete 100% acquisition of the Ghanaian non – banking financial institution (afb) from its original owners Jumo World Limited a company incorporated in Mauritius, as the holding company of afb Ghana Plc.

afb in Ghana currently offers innovative credit products to over 60,000 customers across its network of more than 25 branch and customer access points.

The acquisition of afb adds to Letshego’s expansion of its West Africa geographic footprint after its 100% acquisition of Letshego Nigeria MFB (formerly FBN Microfinance Bank) in 2015. It brings Letshego’s country presence to eleven across sub-Saharan Africa and its customer base to over 480,000.

In view of this, afb’s trading name will be changed to Letshego Ghana Limited and its brand to Letshego this year.

Commenting on the takeover the Managing Director of afb Ghana Plc, Arnold Parker said the Ghanaian team was happy to be joining the Letshego Group, with very clear ambitions for inclusive finance-oriented growth across the continent.

“We are excited to be joining the Letshego Group, and I have no doubt that we will benefit from this vision and strategic focus. While we have a profitable and successful customer delivery model, we look forward to the innovations and capacity-building that Letshego’s engagement will bring to our business, the Ghanaian people, and the economy.”

On his part the Group CEO of Letshego Chris Low also said it was exciting to be welcoming the afb team from Ghana into the Letshego family at this time. According to him the acquisition will see them further expand the company’s footprint into the region where they see significant potential.

“As a Group, we continue to focus on the acceleration of all four of our strategic pillars, namely embracing financial inclusion, growing the franchise, enhancing our customer experience and embedding our future capability model. We believe afb has a platform that will enable us to roll out our full-service inclusive finance model of loans, savings, payments and micro-insurance in support of the development of the economy of Ghana.”

“As a leading indigenous BSE-listed company, we intend to further enhance our product and solution offerings and expand our customer base as we seek out opportunities to better respond to the financially under-served populations across sub-Saharan Africa,” he said.

Since its launch in 2010, AFB has grown to service over 60 000 customers through a country-wide network of more than 25 branches and customer access points, and an end-to-end automated service delivery model. AFB’s strategy is to deliver responsible lending services by leveraging technology to drive access, simplicity and customer satisfaction.

This fully aligns to Letshego’s own inclusive finance agenda as does its established product offering including deduction-at-source loans for government employees and reputable private company’s employees, direct loans to private sector employees as well as loans to micro and small entrepreneurs (MSEs).

With over 600,000 Government employees in Ghana and Letshego’s established strength in this sector, the opportunity for building on AFB’s platform is significant. In addition, with Letshego’s expertise, accumulated over the last 18 years, in providing simple, appropriate and affordable financial services to the formally employed, informal and MSE customer segments, there will be opportunities to introduce commercially sustainable product offerings that support agri-business, education, health, affordable housing and general business sectors.

AFB Ghana is licensed by the Central Bank of Ghana as a Non-Bank Financial Institution – this allows for deposit taking and should enable Letshego to launch USSD based mobile-savings solutions that will assist AFB Ghana Plc | Registration No. PL000232015 | 4th Floor, Cocoshe House, Off Agostino Neto Road, Airport City, Accra, Ghana | Tel +233 3022 41030, Fax +233 302 241 081. Directors: Mr Arnold Parker, Mr Ibrahim Obosu, Mr Darren Bruce Sneddon, Mrs Karin McGeachie and Mr Chris Watkins-Ball. Website: www.afb.com.gh

Currently, all of the afb’s funding is in local currency via a listed MTN programme on the Ghana Stock Exchange – this will remain unaffected by this transaction.

Source: thebftonline