LESAKA TECHNOLOGIES INC

Under

the

supervision

and

with

the

participation

of

our

management,

our

executive

chairman

and

our

group

chief

financial officer, we conducted

an evaluation of our disclosure controls and procedures, as such term is defined

under Rule 13a-15(e)

promulgated under the Securities Exchange Act of 1934, as amended, as of

December 31, 2025.

We previously identified

and disclosed in Part II, Item 9A of our Annual Report

on Form 10-K for the year ended

June 30, 2025,

material weaknesses in our internal control over financial reporting related

to:

(1)

Our

lending

specifically

risk

assessment

and

monitoring

activities

to

changes

in

systems and processes

that could

impact our

system of internal

control, insufficient

controls over internal

information and

information from service

organizations, insufficient

design and implementation

of information technology general

(“ITGCs”), and controls over service

organizations, resulting in ineffective

process level and automated controls,

a lack of validation of the completeness and accuracy of information used

within the process;

(2)

Our payroll process,

specifically insufficient risk

assessment and monitoring activities

relating to changes over

the transfer

of ownership to the centralized

payroll processes that could impact the

system of internal control, insufficient

controls over

information

from

service

organizations,

design

and

implementation

of

ITGCs,

over

service

organizations resulting in ineffective process level and automated controls

including a lack of validation

of the completeness

and accuracy of information used within this process;

(3)

Our

annual

goodwill

specifically

related

to

risk

assessments

and

ineffective

design

and

implementation of controls resulting in ineffective process level

controls;

(4)

Our business

combination process,

specifically insufficient

risk assessments

and ineffective

design and

implementation of

over

the purchase

price

of

the Adumo and

controls over

information resulting in ineffective process level controls including a lack of validation of the completeness and accuracy of

information used;

(5)

Our

revenue

recognition

process

to

prepaid

airtime

sold

and

processing

fees

to

certain

agreements,

specifically insufficient risk assessment and ineffective design and implementation of controls

related to our judgement over

revenue recognized either

as principal versus as

agent resulting in ineffective

controls and

a material misstatement

as well

as the requirement to restate revenue, cost of goods sold, IT processing, servicing and support and related disclosures for all

quarters as described below;

(6)

Our journal

entry process, specifically

relating to

insufficient risk

assessments, and

ineffective design

and implementation

of controls including insufficient controls over information resulting in ineffective process level controls including

a lack of

validation of the completeness

of the journal entry

population and a lack

of validation of the

completeness and accuracy of

information used within the process; and

(7)

An insufficient number of experienced and trained resources and an insufficient understanding of the application

of internal

controls over financial reporting

across the Southern African

businesses resulting in ineffective

design and implementation

of internal controls.

As a result of insufficient time in implementing all procedures to remediate

the material weaknesses discussed in our Annual

Report on Form10-K for our

fiscal year ended June 30,

2025 (as described above), the Executive

Chairman and the group chief

financial officer concluded that our disclosure controls and procedures

were not effective as of December 31, 2025.

Notwithstanding

the

material

weaknesses,

believes

the

statements included

in this Quarterly

Form 10-Q fairly

present, in

all material respects,

our financial

condition, results

of

operations and cash flows as of and for the periods presented in accordance with

GAAP.

Remediation Plan

Management has made significant

progress and continues to actively

work on remediating the identified

material weakness and

remains committed to remediating the material weakness in a timely manner.

Our remediation process is ongoing and includes, but is

not limited to, the following steps:

(1)

implementing

our

comprehensive remediation

plan that

encompasses specific

actions aimed

at embedding

accountability

with control owners as well

as training related to the operation

and importance of internal controls over financial

reporting,

the

principles

and

requirements

of each

control,

with

a

focus

on

the impacted

processes,

over

service

organizations, ITGCs, other process level controls and

embedding accountability on a process and controls level;

(2)

mandating improved risk assessment procedures with governance requirements upon implementing new systems within our

company together with the design, implementation and monitoring

of control activities;

(3)

the recruitment of additional appropriately

skilled resources

across the Finance

and Risk

and Compliance disciplines coupled

with the further upskilling and training of existing resources responsible

for the execution of key controls as well as a focus

on a greater degree of automation of controls throughout the organization;

(4)

embedding of controls compliance in the key performance indicators of

senior executives across the business; and

(5)

collaborating closely with internal and external assurance partners to ensure

the robustness of our remediation plan.

The

remediation

plan

with

respect to

the material weaknesses identified for

the year

ended

2025 may

be

as

is appropriate,

as

we

to

evaluate

and

enhance

our

internal

control

over

reporting.

Other

than

the

design

and implementation of

the remediation

plan, there

have not been

any changes

in our internal

control over

financial reporting

during

the fiscal

quarter ended

2025, that

have materially

affected, or

are reasonably likely to

materially affect,

our internal

c

ontrol over financial reporting.