South African agritech platform Livestock Wealth says its core business continues “without interruption” despite regulatory penalties and the lapse of a financial services licence linked to one of its subsidiaries, as the company seeks to draw a line under a two-year investigation by the Financial Sector Conduct Authority (FSCA).
The Johannesburg-based “crowd-farming” startup, founded in 2015, confirmed this week that the FSCA has concluded a long-running probe into Livestock Wealth (Pty) Ltd, its CEO Ntuthuko Shezi and an associated entity, Livestock Wealth Financial Services (Pty) Ltd. The regulator stopped short of finding unlawful financial services activity but imposed administrative penalties and confirmed that the subsidiary’s financial services provider (FSP) licence has lapsed.
In responses to questions from Launch Base Africa, Livestock Wealth said the licence in question was originally intended to support the provision of insurance services to farmers and is not central to its current operations.
“Livestock Wealth (Pty) Ltd has been operational since 2015 without interruption. Our business operations continue as normal and do not require a relaunch,” the company said.
“We will consider whether we still require this [FSP licence] in the future before making a decision whether to reapply or not. Our operations remain unaffected.”
No illegal financial services — but misleading representations
In its final enforcement outcome, the FSCA said it found no evidence that Livestock Wealth had conducted unregistered financial services business. The company’s core offerings — cattle, macadamia trees and other agricultural assets — do not fall within the legal definition of “financial products” under South African law, meaning an FSP licence was not required to market them.
However, the regulator fined both Livestock Wealth and Shezi ZAR50,000 each for misleading representations. Livestock Wealth had displayed the FSP licence number of Livestock Wealth Financial Services on its website in a manner that created the impression that the main operating company itself was a licensed financial services provider.
The FSCA said this breached provisions of the Financial Sector Regulation Act and the Financial Advisory and Intermediary Services (FAIS) Act. It also confirmed that the FSP licence held by Livestock Wealth Financial Services has lapsed after the entity remained dormant for an extended period.
Livestock Wealth said it paid the fines in full and chose not to appeal. The company maintains that its use of the FSP number was aligned with a business plan previously shared with the regulator, but said it is now focused on “rebuilding trust” and moving forward.
The FSCA’s decision did not address investor complaints relating to delayed withdrawals or the verification of underlying assets.
A platform at the edge of regulation
Livestock Wealth rose to prominence as one of South Africa’s best-known “crowd-farming” platforms, pitching agricultural production as an accessible alternative asset class. Retail investors could fund cattle breeding, crop tunnels or tree farming via a digital platform, with returns expected when assets matured or were sold.
The model attracted institutional backing. In 2022, the Mineworkers Investment Company, through Khulisani Ventures, invested ZAR10m in the business, describing it as a scalable, black-owned agribusiness platform. At the time, Livestock Wealth said it managed assets exceeding ZAR100m and served thousands of users.
But as the FSCA investigation progressed, investor sentiment shifted.
From early 2024, investors began publicly reporting delayed or missed withdrawals, with some saying redemption requests had remained outstanding for months. Complaints appeared across media reports, online reviews and investor forums.
Several investors said they were told delays were linked to other participants failing to meet obligations — explanations that raised concerns about cash flow management and whether funds were segregated on a product-by-product basis. Stokvels, a common form of collective savings group in South Africa, were among those reporting difficulties, with one group saying it was owed nearly ZAR140,000 despite written repayment commitments.
Livestock Wealth has not published recent financial statements, making it difficult for outside observers to assess its liquidity position. The FSCA’s enforcement outcome did not make findings on these withdrawal issues.
Livestock Wealth’s terms state that investments are agreements between investors and independent farmers, with the platform acting as a limited intermediary. Clauses disclaim liability for farmer performance and investment outcomes.
Some investors dispute that framing, saying they dealt only with Livestock Wealth, had no direct relationship with farmers and relied on the platform’s internal wallet system and asset identifiers to track holdings.
No regulatory finding has been made that funds were misused or pooled improperly. In its own statement marking the end of the investigation, Livestock Wealth said it had “accounted for every transaction involving investor funds” and that the FSCA found no misappropriation.
What the licence lapse means
The lapse of the FSP licence relates specifically to Livestock Wealth Financial Services (Pty) Ltd, a subsidiary, rather than the main operating entity. According to the company, the licence had been intended to facilitate insurance-related services for farmers rather than the sale of agricultural assets themselves.
By signalling it may not reapply, Livestock Wealth appears to be positioning its platform firmly outside the traditional financial services perimeter. That stance is consistent with the FSCA’s conclusion that its core products are not financial products under FAIS.
For regulators, the case highlights the limits of existing frameworks when digital platforms offer asset-backed opportunities that resemble investments but fall outside established definitions. For investors, the distinction offers little comfort if liquidity, transparency or communication falter.
Livestock Wealth, for its part, is presenting the regulatory chapter as closed.
“With the investigation now concluded,” the company said, “we are entering our next chapter with renewed commitment and clarity of purpose.”
Whether that message is enough to reassure investors still waiting for withdrawals may determine how unaffected its operations ultimately prove to be.