Letsholonyane will be joining his compatriot Owen Da Gama, who is in charge of Botswana Premier League outfit Black Lions.
Matebele parted ways with former Cape Town Spurs technical director a few months ago, having served as the head coach and Ikageng Tsatsi has been in charge of the team on an interim basis.
Letsholonyane - a former AmaZulu FC reserve team coach - recently returned from Uganda, where he served as the Bafana Bafana-CHAN team assistant coach.
He has also worked for the SAFA as the South Africa under-20 national team assistant coach since last year.