No Free Lunch Podcast – Fintech Payment Facilitation in Africa Building Businesses

In this episode of “No Free Lunch,” host Greg Stewart sits down with Jonathan Thomson, the Executive Head of Commercial at Kazang, a leading FinTech company in South Africa. The discussion delves into the informal economy, particularly the Tavern industry, which is a significant part of South Africa’s economy, estimated to be worth around a trillion rand. Jonathan shares insights into the challenges and opportunities within this sector, emphasizing the massive cash flow and the need for technological solutions to streamline transactions.

Jonathan explains how Kazang has been instrumental in introducing technology to these informal markets, allowing for better tracking and management of cash transactions. He highlights the consumer behavior challenges, such as trust issues with traditional financial systems, and how Kazang’s solutions, like card transactions and digital wallets, are helping to overcome these barriers. The conversation also touches on Kazang’s expansion beyond South Africa into countries like Namibia, Botswana, and Zambia, and their plans for further growth within the SADC region.

Jonathan discusses the importance of adapting products to fit the unique needs of different markets and the role of Kazang’s in-country teams in driving this adaptation.

Listen Here:

Key quotes from Jonathan Thomson:

• “The real economy there is massive and it’s moving and it’s really not being tracked all that much either.”
• “The amount of cash moving is really, really an astounding thing that businesses like ours have gotten a unique chance to start to view.”
• “Our history was with pay phones, you know, we used to put pay phones in little spazza shops in the townships.”
• “In the tavern industry, we’re at about 30% market share.”
• “The wallet for us is really a key, unique selling point.”