LESAKA TECHNOLOGIES INC

ITEM 3.

LEGAL PROCEEDINGS

Litigation related to CPS

Lesaka SA is

a party to

proceedings in the Constitutional

Court of South Africa

involving its subsidiary, Cash Paymaster

Services

(“CPS”), which is

currently in

liquidation. The objective

of these proceedings

is to procure

an order for

CPS to

pay to SASSA the

profit generated by CPS

pursuant to an agreement

concluded between SASSA and

CPS, following the award

of a

tender to CPS. This arose as a consequence of prior court proceedings which concluded that the tender should not have been awarded

to CPS (for

technical reasons not related

to any conduct

by CPS). Lesaka

SA has been

included in these proceedings

in order to

provide

information relevant to determining the profit so made by CPS.

A hearing was

held in the Constitutional

Court on May

27, 2025 and

we await the ruling

of the Constitutional

Court. While no

formal steps have been taken by CPS or any other party to these proceedings to claim that Lesaka SA should be liable to

SASSA or to

CPS as a

consequence of

the proceedings currently

before the Constitutional

Court, it is

difficult to

anticipate what the

ruling of the

Constitutional Court will be.

General

From time to time, we

are involved in

legal proceedings and litigation

arising in the ordinary

course of business. As of

of this Annual Report on Form 10-K, we are not

a party to any litigation or legal proceeding

or subject to any claim that, in the

current

opinion

of

could

be

to

have

a

adverse

effect

on

our

position

or

results

of

operations. However, due to the risks and uncertainties inherent in legal proceedings, actual results could differ from current expected

results.