Banks are usually absent from the microlending business, but with appetites for secured lending drying up, they have over the past few years expanded their reach to the microlending market.
Lending in that space is much easier, as it is not as strictly regulated by the central bank, as in the case of banking.
The Capricorn Group Limited also plays in the microlending space, having invested shareholding in Entrepo Finance.
Letshego and Entrepo are Namibia”;s biggest microlenders.
Standard Bank broke the news on its social media platforms last Friday, saying the funding demonstrates continued support for Letshego”;s growth in common markets and provides a foundation for further growth in African financial institutions.
The bank said the “coordination of multiple local currency facilities across the continent, among others, highlights the ability to coordinate efficient solutions”.
Letshego”;s chief executive officer Ester Kali says the transaction was already concluded last year, and was part of the company using local capital to grow.
Letshego has been prominent in pushing much unsecured credit in the market, and has grown the financial services bottom line over the years.
The microlending entity enjoys payslip deductibility for the loans it grants, and has been popular among civil servants.
Kali says the funding from Standard Bank is well in line with the company”;s growth strategy.
Last year, the bank announced it had entered into another multi-million dollar deal with the International Finance Corporation to fund low cost housing.
The company earns an average N$51,6 million interest income every month from its N$3,6 billion loan book.
Letshego Namibia Holdings shares closed last week at N$2,65 per share.
Email: lazarus@namibian.com.na
Twitter: @Lasarus_A
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