Letshego Holdings Limited is a financial institution established in 1998, with operations in Botswana, Mozambique, Namibia, Swaziland, Tanzania, Uganda, Lesotho, Kenya, Rwanda and Nigeria. Banking or deposit taking has been established in Mozambique. The group has 350,000 customers and has a loan book of approximately USD 600 million. Letshego has been in the Mozambique Market for 5 years.
Letshego’s ‘LetsGo Blue Box’ is an agency banking concept that will allow rural consumers in Mozambique to open an entry level basic formal bank account, with the option to deposit or receive money from other banks and mobile wallets, withdraw money, transact, save, register for micro-insurance and eventually, in phase 2, apply for loans. Customers will also be able to save using the ‘LetsSave’ mobile wallet, and transact using the ‘LetsPay’ mobile transaction service. The Blue Box is solar powered to support biometric registration and transaction authentication.
Key Areas of Scale
FRP support will be used to expand the current offering – specifically through mapping rural customers, developing appropriate solutions, procuring LetsGo banking tookits (the ‘blue boxes’), designing and delivering a financial education programme, providing / procuring technical assistance for delivery and product marketing.
Projected Development Impact
- Reach of approximately 625,991 people by end of project life
- Capacity building of approximately 362,736 people by 2021
The project has potential for development impact based on the research presented as part of the application, specifically through cost savings (through transacting using a financial system rather than in cash) and potentially improved incomes through access to credit and insurance. Realisation of this depends on the appropriateness of the model for the market.
- Software Group BG EOOD
- Support USD 1,000,000
- Match USD 4,065,456
- Period 2 years
- Start 1 January 2017