Homegrown microlender, Letshego Botswana, has secured a senior loan deal worth £15 million (P257 million) with Proparco aimed at achieving the Sustainable Development Goals (SDG).
Proparco is a development finance institution owned by the French Development Agency and private shareholders from across the globe.
The £15 million deal is expected to support Letshego's quest to improve more lives with inclusive finance products across Botswana.
The senior loan also aims to encourage customers to use their loans for productive purposes, not liabilities. Productive purposes include housing, small business development, and mirco-agriculture-related activities.
Letshego CEO Kgotso Bannalotlhe stated that the senior loan secured with Proparco will go a long way easing the lives of Batswana.
"We are pleased to have Proparco on board as a strategic partner and funder contributing to the expansion of our vision for Botswana," he said.
The CEO further stated that Letshego aligns well with Proparco as their mandates are synonymous, which will be a good foundation for the deal.
"As a development funder, Proparco shares the same principles in achieving a positive economic and social impact through sustainable business practices," said Bannabotlhe.
He added that the deal will also provide technical assistance, which will improve their client's protection principles.
"Letshego Botswana will secure its certification. The global certification assures Letshego's commitment to following global governance standards as well as sustainable, customer-centric practices in lending and financial products," he said.
He further elaborated that the deal qualifies as part of the Bottom 40 and meets 100% of 2XChallenge criteria which is good for them.
"These two globally recognised social indicators demonstrate Letshego Botswana's commitment to generating socioeconomic value and its commitment to gender equality principles and policies across its leadership, strategy, and employment guidelines," Bannalotlhe said.
Proparco regional director for Southern Africa Steven Gardon explained that they lent Letshego the loan because it aligns well with their finance development.
"Reducing social inequalities is at the core of Proparco's 2023–2027 strategy. This funding partnership focuses on two of the three key priorities for Proparco 2023–2027," Gardon said.
He highlighted that not only does the deal align well with their strategies but it also extends to the United Nations (UN) SDGs.
"The three SDGs that the funding facility supports are SDG 1 – no poverty; SDG 5 – gender equality and women's empowerment; and SDG 8 – decent work and economic growth," he said.
The £15 million deal is expected to support Letshego's quest to improve more lives with inclusive finance products across Botswana.
The senior loan also aims to encourage customers to use their loans for productive purposes, not liabilities. Productive purposes include housing, small business development, and mirco-agriculture-related activities.
Letshego CEO Kgotso Bannalotlhe stated that the senior loan secured with Proparco will go a long way easing the lives of Batswana.
"We are pleased to have Proparco on board as a strategic partner and funder contributing to the expansion of our vision for Botswana," he said.
The CEO further stated that Letshego aligns well with Proparco as their mandates are synonymous, which will be a good foundation for the deal.
"As a development funder, Proparco shares the same principles in achieving a positive economic and social impact through sustainable business practices," said Bannabotlhe.
He added that the deal will also provide technical assistance, which will improve their client's protection principles.
"Letshego Botswana will secure its certification. The global certification assures Letshego's commitment to following global governance standards as well as sustainable, customer-centric practices in lending and financial products," he said.
He further elaborated that the deal qualifies as part of the Bottom 40 and meets 100% of 2XChallenge criteria which is good for them.
"These two globally recognised social indicators demonstrate Letshego Botswana's commitment to generating socioeconomic value and its commitment to gender equality principles and policies across its leadership, strategy, and employment guidelines," Bannalotlhe said.
Proparco regional director for Southern Africa Steven Gardon explained that they lent Letshego the loan because it aligns well with their finance development.
"Reducing social inequalities is at the core of Proparco's 2023–2027 strategy. This funding partnership focuses on two of the three key priorities for Proparco 2023–2027," Gardon said.
He highlighted that not only does the deal align well with their strategies but it also extends to the United Nations (UN) SDGs.
"The three SDGs that the funding facility supports are SDG 1 – no poverty; SDG 5 – gender equality and women's empowerment; and SDG 8 – decent work and economic growth," he said.
