Letshego Holdings Namibia鈥檚 inaugural N$260 million Social Bond has successfully financed 7,488 productive loans, significantly advancing the company鈥檚 financial inclusion goals.
Of these, 86.3% supported individuals earning less than N$7,500 monthly, targeting the ultra-low-income segment, announced Ongame Mutorwa, Communications Manager at Letshego, in a statement this week.
Launched in May 2024, the Social Bond represents a key milestone in Letshego鈥檚 commitment to expanding access to financial services, particularly for underserved communities historically facing barriers. The bond is fully aligned with the International Capital Market Association鈥檚 Social Bond Principles and Letshego鈥檚 comprehensive Social Financing Framework, enabling the company to channel affordable credit to those in need.
Mutorwa said these are not just statistics; they represent real progress in addressing Namibia鈥檚 financial inclusion challenges.
According to the 2017 Namibian Financial Inclusion Survey, 22% of adult Namibians remain financially excluded, with this figure rising to 27.1% in rural areas. Letshego鈥檚 Social Bond directly addresses this gap by providing responsible financial solutions that enable access to essential services and socioeconomic advancement.
Independent verification from IBIS ESG Consulting Africa has confirmed that Letshego鈥檚 transparent allocation and impact reporting have met international best practices. Their assurance validates that Letshego鈥檚 Social Bond proceeds have been directed exclusively toward eligible social assets, with no funds used for ineligible or excluded activities.
Letshego Holdings Namibia鈥檚 social finance initiatives also contribute directly to multiple United Nations Sustainable Development Goals, including those focused on poverty reduction (SDG 1), gender equality (SDG 5), decent work (SDG 8), and reduced inequalities (SDG 10). By enabling access to affordable finance for education, healthcare, housing improvements, and microenterprise development, Letshego is helping build the foundation for a more inclusive Namibian economy.
Letshego maintains close connections with the communities it serves through its 16 physical outlets and network of direct sales agents. This on-the-ground engagement enables Letshego to develop financial solutions that address specific local challenges faced by different communities, from urban entrepreneurs to rural households.
Looking ahead, Letshego remains focused on expanding responsible finance practices while maintaining the integrity of its ESG commitments.
鈥淭he success of the Social Bond initiative provides a strong foundation for scaling the approach to financial inclusion and continuing to deliver shared value, unlocking opportunities for individuals, households, and communities across the country,鈥 she added.
In a financial landscape increasingly defined by the dual mandate of purpose and profit, Letshego Holdings Namibia, the parent company of Letshego Bank Namibia and Letshego Micro Financial Services Namibia, is proud to demonstrate that responsible finance can drive both business growth and meaningful social impact.