Sanlam and MTN in fintech alliance to broaden Africa footprint
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Sanlam and MTN Group are joining forces in an alliance to distribute Sanlam Group insurance and investment products across Africa, further developing MTN’s mobile financial services business.
The alliance will build a digital insurance and investment business, which will be integral to MTN’s fintech offering. It will provide people across the continent with easier access to these services, particularly sectors of the population that have typically been unable to access traditional distribution channels for such products.
The alliance had the potential to pre-empt and adapt to digital disruption in markets where both Sanlam and MTN operate and would enable MTN to accelerate and scale its InsurTech offering through its brand and reach and by leveraging Sanlam’s licensing and geographical footprint, as well as its broad product capabilities and expertise.
MTN InsurTech businesses have approximately 6 million active policyholders, with a target of over 30 million policyholders by 2025 with this new alliance.
The collaboration provides 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.
Sanlam Group CEO Mr Paul Hanratty said: “We anticipate strong long-term growth in mobile financial services and insurance and investments are no exception to this.”