Sanlam and MTN Group on Thursday (12 August) announced a strategic alliance to distribute Sanlam Group insurance and investment products across Africa, further developing MTN’s mobile financial services business.
The alliance, the operator said in a statement, will build a digital insurance and investment business, which will be an integral part of MTN’s fintech offering. It 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, the group said.
The alliance has the potential to pre-empt and adapt to digital disruption in markets where both Sanlam and MTN operate.
MTN InsurTech businesses currently have approximately six million active policyholders, with target of over 30 million policyholders by 2025 with this new alliance.
Sanlam Group chief executive Paul Hanratty said: “We are excited by MTN’s development of modern mobile financial services for the benefit and empowerment of the African consumer. 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.”
“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,” said MTN Group president and CEO Ralph Mupita.