R1.1 billion sale of South Africa’s only bank with no fees hits a speed bump

Lesaka Technologies has announced that the long-stop date for its acquisition of Bank Zero will be pushed from 6 August 2026 to 31 January 2027.

This comes as Lesaka is jumping through all the necessary regulatory hoops required to finalise the R1.1 billion deal.

Lesaka first announced plans to acquire Bank Zero-owner Zero Research for R1.1 billion in 2025 and has already received unconditional approval from the Competition Tribunal.

Lesaka is a JSE-listed fintech group that provides financial technology products and services to underserved consumers and small businesses. 

It also provides low-cost financial services to underserved and unbanked customers, including insurance, microloans, and payment processing.

However, since it does not hold the requisite banking license, Lesaka does not provide banking services, which is why it is now looking to acquire Bank Zero.

Bank Zero was founded in 2018 and is chaired by South African business and venture capitalist Michael Jordaan.

The bank’s main selling point is its innovative fee model, with an “only pay for what you use” promise.

In other words, Bank Zero customers only pay for cash and chosen extras, and only when they use them, meaning clients do not end up cross-subsidising other customers.

It is also a fully digital bank, meaning it has no physical bank branches and clients only interact with the bank through its mobile app.

When Lesaka’s proposed acquisition was first announced, the company said this deal would allow it to add full banking capabilities to its fintech offering.

On Thursday, 18 June, Lesaka informed shareholders that the transaction implementation agreement for its Bank Zero acquisition will lapse if the outstanding conditions precedent are not fulfilled or, if permitted, waived by 6 August 2026. 

It explained that Lesaka and Zero Research agreed to extend this deadline from 6 August 2026 to 31 January 2027 while the remaining outstanding regulatory consents are being procured.

The company did not provide a reason for the delay.