Shoprite and Investec team up to take on Capitec in South Africa

Shoprite and financial-services giant Investec have partnered to enable Africa’s largest grocer to expand the financial services it offers its millions of customers.

The non-exclusive alliance-banking partnership allows Shoprite to leverage Investec’s infrastructure, balance sheet, regulatory capabilities and banking license to expand the retailer’s transactional-account offering.

The companies revealed this in a statement on Monday. This will include a debit card that will be rolled out across the grocer’s brands.

Bloomberg first reported the plan on 23 October.

Shoprite contributes one of South Africa’s largest pools of consumer transaction data and a national distribution network.

The retailer’s insights into customers’ spending patterns and shopping behaviour could help support the development of products in areas such as rewards and payments.

“By combining our reach with Investec’s banking expertise, we can expand access to simple and convenient fintech solutions that give South Africans greater choice and control over their money,” Shoprite CEO Pieter Engelbrecht said.

The proposed structure will enable Shoprite Financial Services to expand its transactional offering without establishing a separate bank.

It will also allow Investec to extend the reach of its existing capabilities into new markets and client segments, creating additional growth opportunities while maintaining its core strategic focus on private clients.

“It enables Investec to access new markets, allowing us to scale our established financial services capabilities while remaining focused on our existing target market,” Investec CEO Fani Titi said. 

“It creates an opportunity to deepen our participation in South Africa’s evolving payments ecosystem and broaden our access to retail deposits.”