Letshego : Social Impact Report 2023 - Final

LETSHEGO HOLDINGS LIMITED

Impact report 2022

Contents

02 About this report

Part 1

Our business

04 Who we are

06 Letshego at a glance

Part 2

A message from our leaders

08 A message from our leaders

Part 3

Our impact model

10 Measurable and sustainable impact

14 Overview of social impact survey results

Part 4

Delivering on our promise to improve lives

16 Financial inclusion

1. Micro and small entrepreneurs

1. Affordable housing

1. Healthcare

1. Education, learning and development

1. Gender equality and women empowerment

1. Partnerships and collaboration

Part 5

Sustainable Development Goals index

48 Sustainable Development Goals index

A

Our business	A message from	Our impact model	Delivering on our promise	Sustainable Development
our leaders	to improve lives	Goals index

Further information	letshegoinvestor.com
in this report

LETSHEGO GROUP IMPACT REPORT 2022

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About this report

The Letshego Group's 2022 Impact Report provides stakeholders with an overview of our performance against our financial inclusion mandate to society and how we make a difference in the lives of our stakeholders and the communities in which we operate. The report focuses on the sustainable development areas where evidence exists that our commercial activities provide real and tangible benefits to our stakeholders and communities. These areas align with 11 of the 17 United Nations Sustainable Development Goals (UN SDGs).

View our impact model on page 10.

We strive to continually improve the quality of our information, and transparently report on the factors that affect our ability to create positive impacts, to assist our stakeholders to make informed decisions about the Group and to enhance our stakeholder engagement. The information disclosed in this report is of interest to all our stakeholders, including our investors, employees, customers, funders and strategic partners as well as our broader stakeholder groups, including the governments, regulators and communities in the regions in which we operate.

SCOPE AND BOUNDARY

Our impact report covers Letshego Holdings Limited, including its operating companies in Botswana, Eswatini, Ghana, Kenya, Lesotho, Mozambique, Namibia, Nigeria, Rwanda, Tanzania and Uganda for the fiinancial year starting 1 January 2022 and ending 31 December 2022.

OUR STAKEHOLDERS

Numerous stakeholder groups, economies and communities are affected by our operations, and have either a direct or indirect interest in our strategy and success. We consider these stakeholders integral to achieving our vision of becoming a world-class retail fiinancial services organisation. Building robust relationships with our stakeholders, and addressing their feedback and concerns, helps us shape and enhance our strategy and operations to deliver tangible value, and identify opportunities to collaborate with them to realise mutual benefits.

Our stakeholder engagement framework is managed by our Group and Country leadership teams and supported by the Board of directors (Board). The Group Chief Executive Officer (CEO) provides an update on material feedback from our key stakeholder groups at each Board meeting, including from investment analysts, institutional investors and regulatory authorities, customers and strategic partners. The frequency and means of engagement varies per stakeholder group. To support continuous improvement we ensure that our channels of communication invite feedback and open dialogue.

TIME HORIZONS

SHORT

TERM

2023, in which we will continue to drive our digital transformation.

MEDIUM

TERM

2024 to 2025, with 2025 being the year in which we aim to achieve our strategic targets.

LONG

TERM

2026 and beyond, drive positive impacts that contribute to United Nations Sustainable Development Goals (UN SDGs).

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Our business	A message from	Our impact model	Delivering on our promise	Sustainable Development
our leaders	to improve lives	Goals index

REPORTING

STRUCTURE

This is our second impact report to stakeholders. The report builds on the foundation set by our first impact report which was published in 2019. It has been restructured slightly to provide a more in- depth view of the positive impacts achieved by the Group through the financial inclusion of more Africans.

Feedback

We welcome written feedback from our stakeholders on this report as well as our performance. Enquiries can be directed to the Head of Group Corporate Affairs at:

[e-mail]

LETSHEGO GROUP IMPACT REPORT 2022

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PART 1

OUR BUSINESS

Who we are

The Letshego Group is a Pan-African provider of financial products, headquartered and listed in Botswana. We provide access to simple, appropriate and inclusive fiinancial solutions for individuals, micro and small entrepreneurs (MSE) and under-served populations across 11 sub-Saharan markets.

We leverage technology and innovation to create an expansive ecosystem that provides our customers with accessible and affordable financial (lending, savings, payments and insurance) and lifestyle (non-financial) solutions - products that help people to improve their lives but which historically were not

easily accessible. Our products are delivered in tandem with the upskilling and empowerment of our employees and customers with digital skills that support sustainable fiinancial inclusion and digital-savvy economies.

OUR FIVE 1	LENDING	2 SAVINGS
VALUE STREAMS
Access to funding	Mobilising savings
X Loans at affordable interest	X Savings accounts with
	rates.	competitive interest rates.
X We focus on the productive use	X Guaranteed access to
	of funding where customers are	savings whenever needed.
	able to make repayments from
	the income generated by the
	loan.

X Data driven, customised credit scoring tools accurately assess credit risk.

PERSONAL LOANS	INDIVIDUAL SAVINGS
(DAS1 AND NON-DAS)	GROUP SAVINGS
MSE LOANS	COMMERCIAL DEPOSITS
PROGRAMMATIC LOANS

1 DAS: unsecured personal loans issued to civil servants and other employees under a payroll deduction scheme implemented by a participating employer.

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Our business	A message from	Our impact model	Delivering on our promise	Sustainable Development
our leaders	to improve lives	Goals index

DIGITAL TRANSFORMATION STRATEGY

We are digitising customer access channels while maintaining a complementary network of physical outlets. Our LetsGo Digital Mall offers our customers fast and easy access, simplicity, affordability and inclusivity across multiple secure channels: website, unstructured supplementary service data (USSD), mobile phone and WhatsApp.

3 PAYMENTS	4 INSURANCE
Simple and	Protecting
secure payments	against risks
X Technology driven money	X A comprehensive range of
transfers, using agency	insurance offerings,
banking, USSD and mobile	including digital insurance
banking.	products in key markets.

5 LIFESTYLE

Beyond banking

• Value-addinglifestyle solutions that provide wellbeing, education and personal fiinance solutions beyond traditional banking.

WALLETS	LIFE INSURANCE	DIGITAL WELLBEING
CARDS	SHORT-TERM INSURANCE	EDUCATION LOANS
REMITTANCES	LONG-TERM INSURANCE

LETSHEGO GROUP IMPACT REPORT 2022

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Letshego at a glance

Our brand is trusted across Africa; based on our commitment to responsible and ethical lending, our full regulatory compliance in all our countries of operation and our responsiveness to the needs of our customers.

1OUR VISION

To be a world-class retail fiinancial services organisation that meets the needs of mass- and middle-income individuals and MSEs¹.

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OUR

MANTRA

OUR

PURPOSE

IMPROVING

2LIVES

SimplicityFocus Discipline

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OUR STRATEGY

Product diversification

Geographic rebalancing

Enterprise engine

Digitalisation	Sustainable stakeholder

6	1 Our selected economic segments are proven to have the highest impact in supporting social development in Africa.

Our business	A message from	Our impact model	Delivering on our promise	Sustainable Development
our leaders	to improve lives	Goals index

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HOW WE WILL ACHIEVE OUR STRATEGY

6-2-5 execution roadmap

Plan 6 (2020): Productivity of solutions

• Strengthen our core business and lay the foundation for product diversification and digital platforms.

OUR FOOTPRINT

L Lending D Savings T Payments I Insurance LS Lifestyle

Plan 2 (2021 - 2022): Transformative technologies

• Be customer-led (expand and scale up our product offering) and invest in transformative technology (digitise customer journeys and automate manual processes).

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3

11

Plan 5 (2023 - 2025): Platform thinking

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4

X Leverage platform thinking to create a future-fit organisation (fully digitised, scaled-up business lines in all key markets and ecosystems that serve the

entire customer banking journey).

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OUR INTENDED OUTCOMES

1	Capture new market leading
positions
	5% to 10% market share in product-segment
	combinations across our markets.
2	Comprehensive product offering
Unique value propositions that meet changing
	customer preferences.
3	Digital solutions
Digital platforms that are inclusive, expand
	our reach and deliver an excellent customer
	experience.
4	Sustainable value creation
A sustainable financial performance with robust
	returns to shareholders over the long term.
5	Positive social impact
A measurable and sustainable social impact

within the markets where we operate, delivering affordable and appropriate fiinancial solutions for emerging customers, including women, youth and entrepreneurs.

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1 Botswana

	L	I	LS				6
2	Eswatini			7	1
		L	LS			2
						5
3	Ghana
	L	D	LS
4	Kenya				8	Nigeria
	L	I	LS			L	D	T	LS
5	Lesotho				9	Rwanda
		L	LS					L	D
6	Mozambique		10	Tanzania
	L	D	T			L	D	T	LS
7	Namibia				11	Uganda
	L D	T	LS					L	LS

LETSHEGO GROUP IMPACT REPORT 2022

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PART 2

A MESSAGE FROM

to present

stand-alone impact provides an overview of

our commercial activities a social or environmental

in the lives of our stakeholders and communities.

Philip Odera

Board Chairman

We are growing a franchise, which requires a deepened understanding of the markets in which we operate, enhancing customer engagement to better understand the needs of customers in those markets, and improving the customer experience through our digital platforms. All of these contribute

social impact we can have in our communities. We increased focus on measuring our social

accessed over leverage

to

The survey results showed that Letshego is making a positive difference in enabling its customers to access financial services and improve their financial wellbeing. We also identified opportunities where we can further enhance customer experience and meet the evolving needs of financially under-served individuals and small business owners.

We are proud of the progress we are making in furthering our programmatic lending solutions and other financial and lifestyle products that help to improve the lives of customers as well as the communities where they live. Our approach is founded on research that shows that the chosen selection of economic segments are proven to have the highest positive impact in supporting social

in Africa.

people, our partners, regulators and

has enabled us to deliver on our two decades.

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