Letshego Holdings Namibia says its N$260 million Social Bond, launched in May 2024, has helped finance 7,488 productive loans across the country, with the majority benefiting ultra-low-income earners.
According to the company, 86.3% of the loans issued through the Social Bond supported individuals earning less than N$7,500 per month.
“We are proud to report that the fully allocated Social Bond has financed 7,488 productive loans, with 86.3% supporting individuals earning less than N$7,500 monthly in Namibia’s ultra-low-income segment,†said Ongame Mutorwa, Communications Manager at Letshego Holdings Namibia.
The bond, fully aligned with the International Capital Market Association’s Social Bond Principles and Letshego’s own Social Financing Framework, is aimed at improving financial inclusion, particularly for Namibians historically excluded from the formal financial system.
According to the 2017 Namibia Financial Inclusion Survey, 22% of adult Namibians remain financially excluded, with this figure rising to over 27% in rural areas.
Letshego says the Social Bond addresses this gap by providing access to affordable credit for education, healthcare, housing improvements and small-scale business development.
Independent verification by IBIS ESG Consulting Africa confirmed that Letshego’s allocation and impact reporting meet international standards. The firm confirmed that all proceeds from the Social Bond were directed exclusively to eligible social assets, with no funds used for excluded activities.
Letshego says the initiative also contributes to several UN Sustainable Development Goals, including poverty reduction (SDG 1), gender equality (SDG 5), decent work and economic growth (SDG 8), and reduced inequalities (SDG 10).
“With 16 physical outlets and a network of direct sales agents, Letshego maintains a strong community presence that allows it to respond to the specific needs of both urban and rural Namibians,†said Mutorwa.
The company plans to scale up its responsible finance practices while maintaining its environmental, social and governance (ESG) commitments and notes the success of the Social Bond provides a solid foundation for expanding inclusive finance across the country.
Letshego Holdings Namibia is the parent company of Letshego Bank Namibia and Letshego Micro Financial Services Namibia.
