Lesaka’s Fintech Platform Deepens Reach In South Africa’s Township Markets

Building on its broader market ambitions, the company is now demonstrating tangible impact at street and store level among consumers, traders, and township entrepreneurs.

A Long-Term Partner to the Township Economy

Lesaka currently serves over 90,000 micro merchants and over 30,000 Small-to-Medium sized (SMB), the majority of these businesses are in townships and villages across South Africa.

“Lesaka is synonymous with South Africa’s township economies,” says Lincoln Mali, CEO Lesaka Southern Africa. “We understand the pain points of both consumers and merchants and what it takes not only to survive, but to grow.”

Enabling Township Merchants to Grow

Lesaka has the rare capability to serve township merchants of all sizes…from
micro to small and medium sized businesses. These businesses are the cornerstone of township economies. Lesaka’s merchant solutions include, point-of-sale solutions and card acquiring, growth capital, supplier and bill payments, VAS products, cash management and software solutions.

“Lesaka is unique in the breadth of solutions we offer to a wide range of businesses in townships. Our digital tools allow these businesses to grow, become more efficient and reduce risk, all while joining the digital revolution,” says Mali.

Lesaka’s POS terminals turn spaza shops and local traders into one-stop service points, streamlining operations and increasing safety.

Lesaka also leverages merchant data like stock and sales history to offer short-term working capital loans and growth capital in faster ways than established financial institutions. A tavern owner has been able to access growth capital of R4 million within 24 hours on Lesaka’s App to build a new wing to his establishment.

Digitising Fuel Courts and Township Hospitality

Lesaka has extended its fintech solutions to township fuel court operators through software that simplifies and centralises business operations. George Nkosi, who owns petrol stations in Dobsonville and Diepkloof, says, “Lesaka’s fuel solutions solve my pain points. I can plan better and remove the guesswork. It gives me peace of mind.”

The township food and beverage industry, worth approximately R150 billion a year, is also seeing digital uplift. Around 850 township restaurants and taverns, including global franchises like KFC and local brands such as Honchos, now use Lesaka’s hospitality tools.

“It is a battle to survive in the F&B hospitality industry,” Mali says. “The more technology support an operator has, the better their chances of success.”

Improving Lives of Township Consumers

Lesaka currently serves 1.7 million SASSA grant beneficiaries. Lesaka’s consumer services cover banking, micro-loans, insurance, bill payments and value-added services specifically tailored for SASSA grant recipients.

For Dorah Komane, who’s been a customer since 2014, safety and legitimacy were key.
“We were scared of loan sharks, but now I don’t need to take money from strangers. I walk in, show my ID and receive my loan immediately. It is safe and legitimate. Since I took out my Lesaka loans, things have been a lot better.”

Insurance products, including funeral and pensioners’ plans, are also designed with affordability in mind. Maggie Manyeke explains, “They made it possible for us to afford insurance. I am so happy about this. You guys are changing people’s lives for the better.”

Beyond grant beneficiaries Lesaka serves the wider townships with additional digital solutions. Lesaka’s bill payments and value-added services offer further convenience to township consumers, facilitating easy settlement of their monthly accounts and utilities as well as paying for airtime, data and electricity.

Mali concludes, “We are deeply embedded in the daily lives of township residents and merchants, and our offerings are now woven into the economic fabric of these communities. Our core purpose is to empower consumers and merchants to reach their full potential by making financial services easier, safer and more inclusive.”

https://lesakatech.com/