Letshego Holdings Namibia, together with its subsidiaries Letshego Bank Namibia and Letshego Micro Financial Services Namibia, has suspended all new Deduction at Source (DAS) loans for government employees with immediate effect, following a directive from the Ministry of Finance.
The company said that all new micro-lending loans will now be issued through debit order arrangements and will be subject to credit affordability assessments.
It stated that the shift is aimed at ensuring responsible lending while continuing to provide financial support for customers.
Chief Executive Officer of Letshego Holdings Namibia, Dr Ester Kali, said the move highlights the benefits of the company’s long-term business strategy.
“Our long-term diversification strategy is proving its value. It has strengthened our business and enhanced resilience, allowing us to continue delivering value to our shareholders. Letshego remains well-positioned to serve our customers and communities as we adapt to these changes. We are committed to promoting financial inclusion and maintaining operational stability,” she said.
Letshego noted that since 2016 it has been diversifying its product range beyond micro-lending to include banking services.
The strategy, the company said, has seen the introduction of personal loans with repayments via debit order, home loans, transactional accounts and savings products.
The company reported that this diversification is already evident in its portfolio. As of June 2025, deposits from savings and transactional accounts totalled N$1.18 billion, while home loans stood at N$199.6 million.
Despite the suspension of DAS loans, Letshego said it will continue to provide banking services and personal or micro loans through debit order arrangements.
According to data from Simonis Storm, 110,607 loans were originated via the DAS model in the 2024 financial year, representing N$5.2 billion, or 96% of Letshego’s total loan book.
