Lesaka gets approval for $64m Bank Zero acquisition

Lesaka Technologies, the fintech firm backed by African Rainbow Capital (ARC)—the investment group led by South African billionaire Patrice Motsepe—has received approval from South Africa’s Competition Commission for its planned $64 million purchase of Bank Zero. 

The clearance removes the main regulatory hurdle for the deal, which was first announced in June 2025. Under the agreement, Bank Zero shareholders will receive about 12 percent of Lesaka’s fully diluted shares and up to $5 million in cash once the transaction closes.

Regulatory step nears final stretch

Lesaka announced in June its plan to acquire all issued ordinary shares of Bank Zero Mutual Bank. The Competition Commission’s approval moves the transaction closer to completion, bringing Lesaka nearer to securing Bank Zero’s banking license and digital infrastructure.

The deal gives the group a platform to expand its financial-services offerings across South Africa. The company said the merger will allow it to broaden its product portfolio in both consumer and merchant markets. Full details of the integration will be shared once the remaining regulatory approvals are finalized.

Digital banking expansion

Bank Zero, launched in 2021, offers a fully digital, zero-fee banking model and is part of a growing wave of challengers to South Africa’s traditional lenders. The acquisition gives Lesaka a licensed banking platform, providing a foundation for its payments and retail financial services operations.

Lesaka described the acquisition as a key step toward scaling its business and opening new revenue streams, though it has not yet provided a timeline for the full rollout.

Motsepe’s broader fintech push

Motsepe’s investment in Lesaka forms part of ARC’s plan to build a stronger position in financial services and reduce exposure to mining. Lesaka, listed on NASDAQ and the Johannesburg Stock Exchange offers banking, lending, insurance, and bill-payment services, and has a market value of about $331 million.

For the first quarter of fiscal 2026, Lesaka reported revenue of R3 billion ($173.6 million), up 10 percent from a year earlier. Late last year, the company acquired Recharger, a prepaid electricity submetering and payments provider, for $28 million, increasing its reach in South Africa’s private utilities and fintech markets.