LESAKA TECHNOLOGIES INC

We operate

in the Southern African

Fintech industry,

which is subject to various

cybersecurity risks that could

our business, financial condition,

and results of

operations including, but not

limited to, the

following: intellectual property theft,

fraud,

extortion, harm to employees or customers, violation of privacy laws and other litigation and legal risk and reputational risk.

We have

a

risk-based

to

identify

and

assess the

threats that

could

affect

our

systems. Our cybersecurity program is aligned with

industry standards and best practices, specifically the

Payment Card Industry Data

Security Standard

(“PCI DSS”),

the National

Institute of

Standards and

(“NIST”) Cybersecurity

Framework and

more

recently

the SARB

Directive

No. 01

of 2024,

focusing

on cybersecurity

and cyber-resilience

(“NPS”).

We periodically

conduct a

third

-party Security Risk Assessment

(“SRA”) to

identify

the potential impact and

likelihood of

various

cyber

scenarios

and

to

the

strategies

and

controls.

We

also

use

this

SRA

to

inform

our

cybersecurity roadmap and strategies to ensure a robust

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”)

with

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 regularly test the process to recover any lost or corrupted data. We

also monitor and evaluate

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 development

regularly

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.

depends on

the availability,

reliability,

and security

of our

information systems,

networks, data,

and intellectual

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

to protect

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

Group

Chief Information Security Officer

(“

CISO

”)

, a

qualified cybersecurity professional

with over 25 years

of experience and a Master’s in Information Security from

Royal Holloway, University of London

.

As of

of this

Annual Report,

we

do

not

believe

any risks

from

threats have

or are

likely to

materially affect

us, including

our results

of operations

or financial

This Item

1C 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.