{"id":51178,"date":"2024-07-07T10:26:54","date_gmt":"2024-07-07T10:26:54","guid":{"rendered":"https:\/\/www.africa-press.net\/botswana\/all-news\/botswanas-letshego-defaults-on-kenya-uganda-loans"},"modified":"2024-07-07T10:54:02","modified_gmt":"2024-07-07T10:54:02","slug":"botswanas-letshego-defaults-on-kenya-uganda-loans","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/botswana\/all-news\/botswanas-letshego-defaults-on-kenya-uganda-loans","title":{"rendered":"Botswana\u2019S Letshego Defaults on Kenya, Uganda Loans"},"content":{"rendered":"

Africa-Press – Botswana. <\/strong><\/span>Botswana-based lender Letshego Holdings Ltd (LHL) has defaulted on a $30.49 million loan for its Kenya and Uganda subsidiaries and trimmed 142 jobs in the units, just 15 months after the company warned of an imminent exit from the region this year on deteriorating economic conditions.<\/b><\/p>\n

Disclosures showed defaults on the Kenya and Uganda loans are part of a $210.95 million debt that the Botswana Stock Exchange-listed lender failed to repay as scheduled amid a $10.82 million loss for the year ended December 31, 2023, that casts doubt its operations as a \u2018going concern\u2019.<\/p>\n

The debt covenant breaches existing had implications on outstanding obligations amounting to approximately P2.9 billion ($210.95 million) at the reporting date (December 31, 2023).<\/p>\n

In light of the possible implication of this performance and the existence of debt covenant breaches on the Group\u2019s liquidity and funding pipeline, management made an assessment of the group\u2019s ability to continue as a going concern,\u201d the lender said in its newly published annual report for 2023.<\/p>\n

The breaches of the loan covenants on Letshego\u2019s units in Kenya and Uganda were Sh3.26 billion ($25.37 million) and Sh658.77 million ($5.12 million), respectively.<\/p>\n

The lender however says it has put in motion mitigation factors including discussions with funders for which ‘letters of no action’ had not been obtained.<\/p>\n

The lender says talks with financiers are on- going, and the group is very positive in receiving some relief.<\/p>\n

\u201cIn the extreme circumstance of the group not being able to roll forward existing facilities and also not being able to access new funding earmarked in its future pipeline………, a forecast cash shortfall of approximately P3.5 billion would be experienced by the group during the period extending to 13 months after the issue of the financial statements,\u201d according to the report.<\/p>\n

Letshego reduced its workforce in Kenya, Tanzania, and Uganda by 43, 69, and 30 respectively, while in Rwanda there was a slight addition of three employees. In March last year the lender issued an alert over an impending closure of its operations in three East African markets\u2014 Kenya, Rwanda, and Tanzania\u2014this year over worsening conditions.<\/p>\n

It classified the three regions (Kenya, Rwanda, and Tanzania) including Ghana and Nigeria as \u2018turnaround markets\u2019 which are currently unfit for growth and appointed a turnaround master Fergus Ferguson, the former Chief Executive of Botswana with oversight over Eswatini and Lesotho (Boleswa), as the regional CEO to oversee their recovery in 10 months, failure to which a closure decision will be made this year to avoid further financial bleeding.<\/p>\n

\u201cThe appointment of a regional chief executive supported by a competent team will oversee the transition of these businesses. However, while geographic rebalancing remains a key strategic conversation for the group, it will not be pursued at the expense of shareholder value,\u201d the lender says.<\/p>\n

For More News And Analysis About Botswana Follow Africa-Press<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Botswana. Botswana-based lender Letshego Holdings Ltd (LHL) has defaulted on a $30.49 million loan for its Kenya and Uganda subsidiaries and trimmed 142 jobs in the units, just 15 months after the company warned of an imminent exit from the region this year on deteriorating economic conditions. Disclosures showed defaults on the Kenya […]<\/p>\n","protected":false},"author":84,"featured_media":51177,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[234],"class_list":["post-51178","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-botswana"],"yoast_head":"\nBotswana\u2019S Letshego Defaults on Kenya, Uganda Loans - Botswana<\/title>\n<meta name=\"description\" content=\"Botswana-based lender Letshego Holdings Ltd (LHL) has defaulted on a $30.49 million loan for its Kenya and Uganda sub ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/botswana\/all-news\/botswanas-letshego-defaults-on-kenya-uganda-loans\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Botswana\u2019S Letshego Defaults on Kenya, Uganda Loans\" \/>\n<meta property=\"og:description\" content=\"Botswana-based lender Letshego Holdings Ltd (LHL) has defaulted on a $30.49 million loan for its Kenya and Uganda sub ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/botswana\/all-news\/botswanas-letshego-defaults-on-kenya-uganda-loans\" \/>\n<meta property=\"og:site_name\" content=\"Botswana\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2024-07-07T10:26:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-07-07T10:54:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/botswana\/sites\/38\/2024\/07\/sm_1720336957.708934.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/botswana\/all-news\/botswanas-letshego-defaults-on-kenya-uganda-loans#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/botswana\/all-news\/botswanas-letshego-defaults-on-kenya-uganda-loans\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/botswana\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Botswana\u2019S Letshego Defaults on Kenya, Uganda Loans\",\"datePublished\":\"2024-07-07T10:26:54+00:00\",\"dateModified\":\"2024-07-07T10:54:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/botswana\/all-news\/botswanas-letshego-defaults-on-kenya-uganda-loans\"},\"wordCount\":470,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/botswana\/all-news\/botswanas-letshego-defaults-on-kenya-uganda-loans#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/botswana\/sites\/38\/2024\/07\/sm_1720336957.708934.jpg\",\"keywords\":[\"Botswana\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/botswana\/all-news\/botswanas-letshego-defaults-on-kenya-uganda-loans#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/botswana\/all-news\/botswanas-letshego-defaults-on-kenya-uganda-loans\",\"url\":\"https:\/\/www.africa-press.net\/botswana\/all-news\/botswanas-letshego-defaults-on-kenya-uganda-loans\",\"name\":\"Botswana\u2019S Letshego Defaults on Kenya, Uganda Loans - 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