Capitec Boosts Tech Investment with 19% Rise in Capital Expenditure

Capitec  has significantly expanded its technology investment, according to its Integrated Annual Report for 2025. The bank’s capital expenditure for the year ended 28 February 2025 reached R1.37 billion, marking a 19% increase from the previous year. This steady growth reflects a commitment to strengthening infrastructure and scaling operations through digital innovation.

Operating expenses also rose sharply, climbing 30% year-on-year to R18.1 billion. While this figure includes a wide range of costs, it highlights the growing weight of technology within the bank’s overall operating model. Capitec’s report notes that ongoing investment in technology and data has been central to its ability to expand efficiently. Major projects include the replatforming of its banking app, the migration of all data to the cloud, and the use of data analytics to enhance both risk management and operational efficiency.

Comparative data suggests Capitec’s growth in IT-related expenditure is keeping pace with, and in some respects surpassing, its peers. TechCentral reported that Absa Group’s IT spending in the first half of 2025 rose to R8.2 billion, reflecting a 5% increase from the prior year. While Capitec does not provide six-month breakdowns, its 19% annual growth in capital expenditure points to a strong upward trajectory.

The increased emphasis on technology mirrors a broader trend across South Africa’s banking sector, where institutions are directing resources toward digital transformation, artificial intelligence, and cybersecurity. The Financial Sector Conduct Authority has identified these areas as critical for the future resilience and competitiveness of the industry.

Capitec’s latest figures position the bank firmly within this shift, underscoring the role of digital investment in driving long-term growth and customer engagement.