MTN and Sanlam Partner to Establish Africa-focus Digital Insurance entity

South African corporate giants Sanlam and MTN are joining forces to form a new entity to conquer Africa’s insurance market. The two companies announced on Thursday that they are coming together in “an exclusive strategic alliance” across Africa, a deal whose goal is to “change the face of insurance” on the continent.

The two companies said they will build a digital insurance and investment business, which will be an integral part of MTN’s fintech offering.

Together they will develop and distribute a comprehensive range of insurance, investment and savings products to the mobile operator’s customers using digital channels.

In a joint statement, the companies said “the new business will provide people across the continent with easier access to these services, particularly those sectors of the population that have typically been unable to access traditional distribution channels for such products”.

Storage Archives | Page 3 of 3 | Shiny Rock Properties
sanlam sandton head office

According to Fin24, After the acquisition of Saham Finances in 2018, Sanlam was thrust into a leading position as far as any non-bank financial house’s African footprint is concerned, serving people across 32 African countries. MTN’s footprint expands across 21 countries, most of which are in Africa.

Fin24 reports, the alliance opens the door to new markets where Sanlam does not yet have a footprint. Countries where MTN has a presence, and Sanlam does not, include Sudan, South Sudan, Congo-Brazzaville and Liberia. But the alliance will potentially also give the insurer power to attack with two different brands in Africa’s biggest economy, Nigeria, given that MTN has successfully penetrated that. MTN Nigeria’s subscriber base stood at 76.5 million at the end of 2020.

“This strategic alliance has the potential to change the face of insurance in Africa by leveraging the brand and reach of MTN, together with Sanlam’s licensing, insurance expertise and extensive footprint,” wrote MTN.

Please follow and like us:

Leave a Reply

Your email address will not be published.

Social Share Buttons and Icons powered by Ultimatelysocial