🏦Weekly Catchup

Whilst South Africa was busy playing diplomatic chess at the G20 summit with the US nowhere to be seen – somehow getting 20+ countries with wildly different agendas to agree on anything – the banking world carried on doing what it does best: disrupting, acquiring, and occasionally imploding. Buckle up. Let's dive into what actually matters this week.

Golden Nuggets

• Lesaka acquires Bank Zero for R1.09 billion – Fintech group snaps up Michael Jordaan's zero-fee digital bank in June; Jordaan joins Lesaka's board whilst continuing as Bank Zero chairman to expand digital banking capabilities

• S&P upgrades SA's big banks – FirstRand, Absa, Capitec, Investec, and Nedbank all upgraded following sovereign upgrade; S&P expects healthy 16% ROE in 2026 supported by diversified business models and lower provisions

• Revolut applies for SA banking licence – The £75 billion fintech giant is making its first African move, aiming for full banking capabilities in Mzansi with heavyweight Dr Gaby Magomola as chairman

• Cell C moves forward with JSE listing – SA's fourth-largest mobile operator trims valuation to R9 billion, lists November 27 after bookbuild priced shares at R26.50 vs initial R29.50-R35.50 range

Main Stories

What’s happening? Fintech group Lesaka Technologies, dual-listed on the JSE and Nasdaq, has acquired 100% of Bank Zero – Michael Jordaan's zero-fee digital bank – in a deal worth up to R1.09 billion, completed in June 2025.

Why it matters: It's the convergence of two complementary visions: Lesaka's extensive fintech infrastructure serving underserved consumers and merchants across Southern Africa, meeting Bank Zero's zero-fee, tech-enabled banking model that's been quietly disrupting since 2018. Bank Zero brought over 40,000 funded accounts and more than R400 million in deposits to the table.

But here's the real prize: The bank operates a digital-only, app-driven platform for individuals and businesses seeking low-cost banking services. No branches. No legacy systems. Just pure digital efficiency.

Plus: For Bank Zero, the acquisition solves the growth challenge. Jordaan's vision was always to build business banking that "actually works for business" with features like relationship banking functionality, custom authorisation chains, and real-time audit trails. But competing against the Big Four banks whilst bootstrapping growth? Not super viable.

Be smart: Lesaka-Bank Zero has: local expertise, established infrastructure, regulatory relationships, and a proven track record serving underserved markets.

But they're also up against Capitec's business banking waves, which has been aggressively slashing fees and winning SME customers. And don't sleep on the fintechs: iKhokha (being acquired by Nedbank for R1.65 billion) and Yoco are both incredibly formidable players in the SME space. The Lesaka-Bank Zero combination has the pieces to win. But as always execution will be everything.

Revolut’s Mzansi Gambit

What’s going on? London-based fintech giant Revolut has formally applied for a South African banking licence, marking its first foray into Africa and setting up a heavyweight battle with the country's Big Four banks.

Why it matters: Revolut isn't playing small ball. With 65 million customers globally, over £1 billion in annual revenue, and plans to reach 100 million users by mid-2027, this isn't your typical fintech dabbling in a new market. CEO Nik Storonsky has made it clear: the company is done with limited e-money licences that resulted in "a worse product." Now they're going full banking or going home.

The appointment of Dr Gaby Magomola – who's held senior positions at Citibank, Barclays, FNB, and served as CEO of African Bank – signals serious intent. This isn't a test market; it's a beachhead.

Be smart: Don't expect Revolut to replicate its UK success overnight. South African banking regulations are notoriously complex – it's why Revolut and Wise haven't entered before. The Prudential Authority will scrutinise capital requirements, governance structures, and consumer protection mechanisms. Then there's the little matter of building trust in a market where consumers have deep relationships with their banks.

But if history's any guide, Revolut doesn't quit. They are bulldozers. They've weathered regulatory challenges in Lithuania, obtained a UK banking licence, and are navigating the byzantine US system. South Africa or Morocco might just be the proving ground for an Africa-wide expansion.

Policy Watch

The Scoop

• Walmart vs Shoprite showdown: Walmart launched 60-minute delivery at its first SA store (Clearwater Mall), taking direct aim at Checkers Sixty60. The US giant's trolley came in at R1,680 vs competitors' R1,713 and R1,868. Two Gauteng stores opening this year, with more to follow.

• Investec's midmarket offensive: The bank launched "One Investec" commercial banking unit targeting 7,000 businesses with R30m-R1.5bn turnover by 2030. Aims to grow revenue from R1.7bn to R3.8bn, directly challenging FirstRand's dominance. CEO Fani Titi admits "it's late in the day" but says the lender is "well-positioned to gain market share."

• Cassava's AI factory push: Strive Masiyiwa's Cassava Technologies is installing 12,000 Nvidia GPUs across five African sites (South Africa, Nigeria, Kenya, Egypt, Morocco). Nvidia invested equity, becoming second Silicon Valley firm after Google to back the group. Rival Altron already launched SA's "first operational AI factory" in October. It’s Strive Masiyiwa doing what he does best - being a visionary.

• Cell C's IPO pricing: SA's fourth-largest mobile operator lists November 27 at R9bn valuation after bookbuild priced shares at R26.50 – down from initial R29.50-R35.50 range. Blu Label's stake rises to 93% economic interest post-transaction.

• Paystack drama: Ezra Olubi, Paystack co-founder and CTO, was suspended after allegations of sexual misconduct surfaced on social media. The Stripe-owned company has opened a formal investigation.

+This

23 November 1943

On this day, the US Congress passed the Smith-Connally Act, giving the President power to seize industries vital to the war effort. Whilst not directly banking legislation, it marked a watershed moment in government intervention in private enterprise – a theme that would echo through banking crises, bailouts, and regulatory overhauls for the next 80 years.

Fast forward to November 2025, and governments worldwide are still grappling with the same question: When should the state intervene in financial systems? South Africa's SARB taking a 50% stake in PayInc, Nigeria's proposed unified fintech regulator, Ghana's crackdown on digital lenders – the dance between innovation and oversight never ends.

The more things change, the more regulators reach for the "seize button." At least these days they ask nicely first.