20 July 2023
[Mbabane] 20 July 2023 – Norsad Capital, an impact investor and private credit provider that offers tailor-made debt solutions to profitable growth-stage companies that deliver desirable social impact in Africa, is providing Letshego Eswatini with funding to the value of ZAR 150 million. The capital will be used to support and improve the lives of civil servants, employees of State-Owned Enterprises, micro and small entrepreneurs and private sector employees through the disbursement of micro loans.
Letshego Eswatini’s purpose is to improve lives by offering financial solutions that meet the diverse needs of Individuals. The loan services are designed to convey convenience and accessibility to those who are typically excluded from traditional banking institutions, and this is accomplished through partnerships with local fintech businesses.
Despite efforts to alleviate poverty and reduce inequality, a significant portion of Eswatini’s population still experiences financial challenges. While more than two-thirds of adults have limited access to formal financial services, there is still a significant number who experience financial exclusion and encounter multiple challenges in qualifying for simple micro loans or basic financial services.
“Too many members of our Eswatini nation struggle to access traditional financial services. This challenge is particularly prevalent in more rural areas, where the majority of our people reside and rely heavily on small businesses and agriculture”, says Mongi Dlamini, Country Chief Executive Officer at Letshego Eswatini.
“Letshego’s purpose is to bridge the gap for individuals to access affordable, simple and accessible solutions to increase productive lending, and make a difference in the lives of our people,” he adds. Norsad’s investment into Letshego’s vision and strategy to improve lives enables more individuals and small business owners to access sustainable micro funding to increase income potential. Letshego empowers and educates its customers to use their loans for productive purposes – these purposes include buying more stock for small business owners; funding children’s education; building or improving a home or accessing critical healthcare.
“Norsad Capital is thrilled to have the opportunity to strengthen its partnership with Letshego Eswatini, whose inclusive finance strategy is centred around achieving a sustainable social impact,” says Oteng Sebonego, Investment Director at Norsad Capital and transaction lead.
“The funding will play a crucial role in helping Letshego Eswatini expand its market share in the unsecured personal loans sector and broaden its range of loan products. The investment aligns with Norsad’s focus on Financial Institutions and its commitment to promoting financial inclusion and sustainable livelihoods, contributing Norsad’s purpose of building a better Africa.” he adds.
Financial inclusion aims to eliminate the barriers that prevent people from accessing financial services, thereby reducing poverty (United Nations Sustainable Development Goal #1) and improving their quality of life. Additionally, this investment also supports Norsad’s impact theme on gender equality, as 55% of Letshego Eswatini’s customers are female.
**ENDS**
About Norsad Capital
Norsad Capital is an impact investor providing tailor made debt solutions to mid-market growth companies in Sub-Saharan Africa. With a track record spanning over 33 years, Norsad Capital has invested over USD700 million in more than 170 companies across the continent. For more information: www.norsadcapital.com
About Letshego Eswatini
Letshego Eswatini is a financial services provider operating in the Kingdom of Eswatini. It is a wholly owned subsidiary of pan-African microfinance institution Letshego Holdings Limited, that has a presence in 11 countries across Southern, East and West Africa. Letshego Eswatini offers various financial products and services, including loans, savings, and insurance solutions, primarily targeting mass and middle market segments as well as microenterprises. For more information click https://www.letshego.com/eswatini / facebook @. / Letshego Group: www.letshegoinvestor.com
