Sanlam is the largest non-banking financial services group
in Africa, with a presence in 33 countries across the continent.
The partnership further develops MTN’s mobile financial
services business in Africa and will build a digital insurance and investment
business (InsurTech), which will be an integral part of MTN’s fintech offering,
the company said in a statement.
The collaboration will also provide people across Africa
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.
According to the report the alliance has the potential to
pre-empt and adapt to digital disruption in markets where both Sanlam and MTN
operate, added the statement.
“We are excited by MTN’s development of modern mobile
financial services for the benefit and empowerment of the African consumer,”
said Sanlam Group CEO, Paul Hanratty.
“It gives us great pride to be able to partner with MTN to
build the best possible range of solutions in the insurance and investment
arena for consumers. We anticipate strong long-term growth in mobile financial
services and insurance and investments are no exception to this,” he added.
The statement further disclosed that the MTN InsurTech
businesses currently have approximately 6 million active policyholders, with target
of over 30 million policy holders by 2025 with this new Alliance.
The alliance will provide Sanlam with the opportunity to
extend consumer access to its products and grow its Africa operations by
providing insurance to MTN’s customer base across the continent, thereby
deepening its extensive footprint in Africa.
Also commenting on the partnership, MTN Group President and
CEO, Ralph Mupita said, “MTN Group is excited to be partnering with Sanlam in
driving financial inclusion across the continent and providing customers with
insurance and investment products tailored to the needs of the African
consumer.”
“Sanlam is the ideal partner as the leading insurance and
investment business across Africa, and with partnership key to its strategic
and execution approach. MTN has built a scale fintech business with over 100
million wallets, of which approximately half are actively using Mobile Money
services every month, presenting a meaningful opportunity to further drive
financial inclusion through the provision of appropriate insurance and
investment solutions,” added Mupita.
The Alliance will build and leverage the strengths and
assets of both Sanlam and MTN to establish a digital insurance and investment
capability across Africa.
While approximately 46% of Africa’s population has access to
and uses cell phone services, insurance penetration remains low at less than 5%
in most markets except South Africa.
MTN is the largest telecommunications operator in Africa
with a presence in 17 countries on the continent and a total of more than 270
million subscribers across its total 21 markets. It is also a large fintech
operator, with a presence in 19 countries and 100 million wallets, 800 000
agents and 650 000 merchants signed up.
Sanlam is the largest non-banking financial services group
in Africa, with a presence in 33 countries across the continent. Forming
mutually beneficial partnerships is part of Sanlam’s business model and is a
key pillar for accelerating growth on the African continent.
The transaction is subject to the parties concluding
definitive agreements and completing the relevant suspensive conditions.
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