LESAKA TECHNOLOGIES INC

We

operate in

the Southern

African Fintech industry,

which is subject

to various

cybersecurity risks

our business,

financial condition,

and results

of operations—including,

but not

limited to,

the following:

theft,

fraud, extortion,

harm to

employees or

customers, violation

of privacy

other litigation

and legal

risk and

reputational risk.

We

have

implemented

a

risk-based

to

identify

and

assess

the

threats

that

could

affect

our

and

information systems. Our cybersecurity

program is aligned with industry

standards and best practices, specifically

the Payment Card

Industry

Data

Security

Standard

(“PCI

DSS”)

and

the

Institute

of

Standards

and

(“NIST”)

Cybersecurity

Framework. We

periodically conduct a third-party

Security Risk Assessment (“SRA”) to

identify the potential impact and

likelihood

of various

cyber scenarios

and to

determine the

appropriate mitigation

strategies and

controls. We

also use

this SRA

to inform

our

cybersecurity roadmap and strategies to ensure the best IT security environment is

implemented at our company. We use various tools

and

methodologies

to

manage

risk—including,

but

not

limited

to,

the

following:

the

use

of

a

Managed

Endpoint

Detection and Response

(“EDR”) software and

Managed Network Detection

and Response (“MNDR”)

for our Local

Area Network

(LAN) monitoring with

internal and external

Security Operations Center

(“SOC”) real-time monitoring, Data

Loss Prevention (“DLP”)

enabled across email and web

channels as well as

mandatory Multi-factor Authentication (“MFA”) in our IT environment. In addition,

we

do

periodic

backups

and

test

the

process

to

recover

any

lost

or

corrupted

data.

We

also

monitor

and

our

posture

and

on

an

ongoing

basis

through

regular

vulnerability

scans,

penetration

tests,

and

threat

intelligence

feeds

by

our

vendors.

We

require

third-party

service

providers

with

access

to

personal,

confidential or proprietary

information to implement

and maintain comprehensive

cybersecurity practices consistent

with applicable

legal standards and industry best practices.

We

recognize

the

importance

of

cyber

awareness

and

skills

which

is

to

the

general

workforce, security

teams, developers

and senior

management which

includes regular

crisis simulations to

prepare respective

teams

for crisis scenarios. This also includes regular phishing simulations and campaigns.

Our

depends

on

the availability,

reliability,

and

of our

systems, networks,

data, and

property. Any disruption, compromise, or breach of our systems

or data due to a

cybersecurity threat or incident could adversely

affect

our operations, customer service, product development, and competitive position. This could also result in a breach of our contractual

obligations or

legal duties

the privacy

and confidentiality

of our

stakeholders. Such

a breach

could expose

us to business

interruption, lost revenue, ransom

payments, remediation costs, liabilities

to affected parties, cybersecurity protection

costs, lost assets,

litigation,

scrutiny and

actions,

reputational harm,

customer dissatisfaction,

harm

to our

vendor

relationships,

or loss

of

market share.

Our Board of Directors

exercises its oversight role

through the Audit Committee,

which provides the Board

with regular reports

and findings

Information

Security Officer

(“CISO”). Our

CISO has

24+ years

of experience

in Information

Technology,

20 years specifically in IT and

IT Security combined. The CISO also has

a Master’s Degree in Information Security from

Royal Holloway, University

of London.

As

of

the

date

of

this

Annual

Report,

we

do

not

believe

any

risks

from

threats

have

or

are

reasonably likely

to materially

affect us,

including our

operations or

It should

be read

in conjunction

with the other sections of

this Annual Report, particularly Item

1A—“Risk Factors.”, for a comprehensive

understanding of the risks

and uncertainties related to our business and operations.