Lesaka Technologies Disburses Over R1 Billion in Loans, Posts Strong Q2 Results

JSE-listed fintech group Lesaka Technologies  has disbursed loans totaling more than R1 billion to its customers, most of whom are South African Social Security Agency (SASSA) grant beneficiaries, according to Lincoln Mali, CEO of Lesaka Southern Africa. The announcement followed the release of the company’s financial results for the second quarter of 2026.

Lesaka plays an indirect role in South Africa’s social grant system through its EasyPay platform, which provides banking and financial services to grant recipients. While the company no longer distributes grants on behalf of the government, it enables beneficiaries to receive, manage, and spend their grant income via transactional accounts, cards, and digital payment services. The company also offers credit and other financial products to this customer base, positioning itself as an alternative to traditional banks and Postbank.

At a group level, Lesaka reported strong growth, with net revenue rising 16% to R1.6 billion, adjusted EBITDA increasing 47% to R304 million, and adjusted earnings climbing to R111 million from R17 million in the previous period.

The consumer segment, which primarily serves the SASSA business, was a standout performer. Revenue in this segment grew 38% to R566.7 million, while segment adjusted EBITDA surged 106% to R159.4 million. Mali explained that growth was driven by increases in customer numbers, cross-selling, and average revenue per user. He added that the company’s market share rose from 11% to 14.3%, making Lesaka the second-largest grant business after Capitec.

Mali said the increase in loan disbursements was supported by a rise in loan size from R2 000 to R4 000 and an extension of repayment terms from six to nine months. About 40% of new loans now come from mid-term loans, reflecting the maturity of Lesaka’s customer base. The company maintains a well-managed loan book, with a credit-loss ratio below 6% per annum, and the majority of borrowers are repeat clients with over two years of history, improving predictability and risk management.

The enterprise segment also performed strongly. Revenue rose 58% to R253.2 million, net revenue increased 67% to R216.9 million, and segment adjusted EBITDA improved to R24.3 million. Mali highlighted the contribution from Lesaka’s acquisition of prepaid electricity vendor Recharger, purchased in November 2024 for R507 million, which has begun adding to EBITDA and demonstrating the accretive impact of acquisitions.

Conversely, the merchant division faced challenges, with revenue declining 13% to R2.26 billion and segment adjusted EBITDA falling 6% to R170.3 million. Mali noted that the division is undergoing significant restructuring, consolidating four previously separate units—Adumo, Gaap, Connect, and Kazang—under new leadership. He said the restructuring and cost-streamlining program is expected to run until year-end, with flat year-on-year growth anticipated during this transition.

“I am delighted that for the first time since the creation of Lesaka in 2022, we have delivered a positive net income and have met our guidance for the 14th consecutive quarter. We also reaffirm our full-year guidance for FY2026, which will represent a 49% growth in group adjusted EBITDA at the mid-point, and positive net income attributable to Lesaka.”

– Ali Mazanderani, Chairman, Lesaka

The results highlight continued growth in Lesaka’s consumer and enterprise businesses, while ongoing restructuring in the merchant segment aims to position the company for long-term stability and profitability.