Shoprite and Investec said to discuss SA fintech tie-up

Shoprite Holdings is said to be in talks with Investec about a partnership as Africa’s largest grocer seeks to expand the financial services it offers millions of customers, according to people familiar with the matter.

Discussions between the companies are ongoing, said the people, who asked not to be identified because the talks are private. The structure of any agreement is still being worked out and there’s no certainty a deal will be reached, they said.

Shoprite declined to comment on the matter, adding that information regarding any business partnerships will be shared with the market as it becomes available. Investec also declined, saying the bank does not comment on speculation.

A tie-up would accelerate Shoprite’s push deeper into financial services without requiring the retailer to become a bank itself. Investec could provide the technology and regulatory expertise needed to broaden Shoprite’s offering, along with other licensed lending services.

Shoprite contributes one of South Africa’s largest pools of consumer transaction data and a national distribution network. The retailer’s insights into customers’ spending patterns and shopping behavior could help support the development of products in areas such as rewards and payments.

Read:
Pepkor $1.3bn fintech deal should have faced shareholder vote, investor says
Shoprite confident Sixty60 growth story is far from over

ADVERTISEMENT

CONTINUE READING BELOW

The move comes as South Africa’s largest retailers, insurers, banks and telecommunications companies increasingly converge to offer better quality services to bigger groups of customers.

Retailers have amassed extensive customer data, have trusted brands and physical distribution networks, positioning them to offer a growing range of financial products that can be developed by banks and telecommunications companies.

Read:
Shoprite buys Vida e Caffè as profit rises
Smart investing: Investec’s Clarity platform simplifies global market access

Shoprite chief executive officer Pieter Engelbrecht has repeatedly said the company wants to capture more of the financial activity flowing through its ecosystem, but has little interest in becoming a fully fledged lender.

“I am after the transaction,” Engelbrecht said in an interview on Sept. 1. “We are not bankers, we are retailers.”

ADVERTISEMENT:

CONTINUE READING BELOW

Shoprite has already taken steps to support that strategy. The company acquired an initial 51% stake in R&A Cellular, a technology and payments business whose point-of-sale devices are used by informal traders, in a deal that became effective in August. The acquisition provides another channel through which Shoprite could distribute financial services.

The retailer also works with African Bank on some everyday banking services that underpin its Money Market Account, which allows customers to deposit and withdraw cash, transfer money, and make purchases. Shoprite has also been testing a Mastercard Inc. debit card linked to the account.

An agreement with Investec would potentially add more specialised banking and fintech expertise to the group’s ambitions, enabling Shoprite to expand beyond basic transaction services into a broader range of financial services.

“Full-fledged banking, I think, is better left to the bankers,” Engelbrecht said.

© 2026 Bloomberg

#Shoprite #Investec #discuss #fintech #tieup