Letshego Ghana’s innovative product, Qwikloan, has significantly driven the company’s financial performance in the first half of 2024. This has helped the company achieve a remarkable 223 percent increase in profits before tax compared to the same period last year.
Profits grew from GH¢18.34 million to GH¢59.3 million.
Qwikloan is a financial product from Letshego Ghana and MTN Mobile Money (MoMo) that provides short-term, unsecured loans. It offers a quick and convenient solution to MTN MoMo subscribers, who now total 42 million since the service’s launch.
The Qwikloan product recorded a 498 percent increase in disbursements, reaching GH¢2.8 billion in the first half of 2024, up from GH¢476.5 million in the corresponding period of 2023. A key factor behind this surge is the substantial growth in the customer base and targeted lending.
There was a notable 114 percent year-on-year increase in customers from peri-urban markets. Additionally, lending to women and women-owned businesses saw a five percent rise, now constituting 34 percent of Qwikloan’s total disbursements.
“Qwikloan is not only generating shareholder value but also making a significant socio-economic impact. It plays a crucial role in supporting small-scale entrepreneurship and addressing critical financial needs, especially for women and young people across Ghana,” said Mr. Tetteh, highlighting the product’s broader impact.
Notably, 66 percent of loans were disbursed to individuals aged 34 years or younger, emphasizing the product’s role in empowering the younger generation, it was added.
Chief Financial Officer Poelo Mkpayah disclosed that Qwikloan, which constitutes 60 percent of Letshego Ghana’s portfolio mix, has served over 6.5 million customers to date. The product has become a cornerstone of the company’s offerings, reflecting its commitment to meeting diverse financial needs across the country.
An analysis of customer usage revealed diverse applications of the loan funds. Approximately 37 percent of Qwikloan borrowers directed the funds toward business activities, 24 percent toward school fees, 15 percent toward emergencies, and 8 percent toward medical expenses. Cumulatively, the product has disbursed GH¢18.8 billion, underscoring its extensive reach and impact on Ghana’s economy.
