Lesaka Data & Insights shines a light on South Africa’s informal economy

South Africa’s informal economy insights are now more accessible thanks to Lesaka Data & Insights. This JSE-listed fintech, formerly known as Kazang Insights, is revolutionising how brands, wholesalers, and financiers understand the informal retail sector. With access to over 90,000 spaza shops and taverns, Lesaka is providing real-time, actionable data to help businesses make smarter decisions.

Lesaka Data & Insights: A Game-Changer for Informal Retail

Lesaka Data & Insights, formed through Lesaka Technologies’ 2024 acquisition of Touchsides, operates as a neutral data partner for organisations serving South Africa’s informal market. The company captures millions of transactions monthly from a vast point-of-sale (POS) network, offering near real-time visibility into:

• Stockkeeping unit-level sales
• Basket composition
• Actual selling prices
• Stock availability
• Geographic trends
• Promotion performance

This data-driven approach replaces outdated survey and sampling methods, giving brands confidence in their decisions.

Why real-time data matters in the informal economy

Southern Africa’s informal retail economy moves billions of rand monthly, yet it remains one of the least understood sectors. Traditional data collection methods often lag behind the fast-paced changes in consumer behaviour, pricing, and product availability. Lesaka Data & Insights addresses this gap by providing real-time, observed consumer behaviour data rather than relying on assumptions.

Actionable insights for smarter decisions

Lesaka Data & Insights goes beyond raw data by combining research, data science, and advanced analytics. This enables organisations to understand not just what is happening in the market, but why it is happening and what is likely to happen next. Brands benefit from insights that drive smarter decisions in:

• Price optimisation
• Product distribution
• Promotional campaigns
• Marketing budget allocation

According to Roland Naidoo, Chief Operating Officer of Lesaka’s Merchant Division, “Our goal is to give companies real-time, grassroots visibility into how South Africa’s informal economy actually shops.”

Empowering informal merchants

Lesaka’s vision extends beyond data provision. The company plans to develop models that allow spaza shops and taverns to share in the value generated by the insights business. Additionally, Lesaka aims to help informal merchants digitise their operations, improve performance, and access new commercial opportunities. This reflects Lesaka’s commitment to strengthening the informal economy through technology, payments, and data.

Expanding the data ecosystem

Lesaka’s roadmap includes integrating payments data from its merchant terminals and information from GAAP, a point-of-sale and software-as-a-service provider for Southern Africa’s hospitality sector. This will provide clients with a more comprehensive view of consumer purchasing behaviour, combining transaction, payments, and hospitality-sector data.

Lesaka Data & Insights is transforming South Africa’s informal economy by turning millions of real transactions into actionable intelligence. With its unique access to data and expertise in the informal sector, Lesaka is helping businesses make faster, more informed decisions while empowering informal merchants to thrive in a competitive market.